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Internal Environmental Analysis

Internal environment plays a crucial role in determining the quality and quantity of company’s operations. As Hawaii Social Media Consulting Company wants to be popular, it coordinates the activities of internal players to achieve a common goal. The company consists of a number of workers, whose devotion helps to improve the image of the organization (Brenkert, 2010). Physical location and management of the company is also critical for its progress. This is important because the organization encourages hard work and professionalism among the staff to become the one of the most reliable consulting firms in the global market. Proper internal management practices of the company make it an international brand and help it become a global powerhouse for social media consultancy. The management is also responsible for making the brand successful in the future despite the imminent stiff competition (Brenkert, 2010).

External Environmental Analysis

Since the company does not work in isolation, there are various expectations of its stakeholders who form a significant part of the external environment. For instance, social media users and service providers expect total efficiency, and the company does not have other choice, but to meet these expectations during consultation. This efficiency makes social media dependable on educated people who are driven by reliability and help the company to be successfully positioned to provide excellent consultation services (Clegg, KornBerger & Pitsis, 2005). Indeed, efficient systems last longer and are not prone to frequent problems, making users and service providers comfortable. Since the company regards social media users and service providers as very important, their expectations must always be met to make sure that they become emotionally connected with the company.

Often, consumers are pleased with the quality, efficiency, and level of innovation that is used in creating different systems. Therefore, Hawaii Social Media Consulting Company prioritizes offering services of premium quality, which attracts different consumers. When quality of consultancy services meets customers’ expectations, the latter become willing to pay for the services. This is the reason that justifies preference for consultancy services that the company offers (Clegg, KornBerger & Pitsis, 2005). Moreover, consumers also form critical part of the external environment of the company. They expect to get emotional value in addition to the services, and since Hawaii Social Media Consulting Company offers such qualities, customers are likely to identify with company products.   

While outlining environmental factors affecting the company, the paper performs SWOT analysis of internal forces and trends. It outlines a primary strength, weakness, opportunity, and threat that the organization has.

SWOT Analysis

Internal Factors

Primary strength

The company’s primary strength comes from the rapidly expanding market, where it has become the global leader in providing social media consultancy services. Basically, the notion that demand for social media products is increasing and will continue to rise in the global market, gives the company strength. High quality consultation services in matters dealing with social media remain relevant and increase communication development internationally (Brenkert, 2010). The other factor that strengthens operations of Hawaii Social Media Consulting Company is increased rate of growth of the number of people using social media compared to those using other modes of communication. This creates high demand in the global market. The company has various products and services to offer to customers. Moreover, the organization places special emphasis on technological development and its continued implementation in various segments such as social media. Since the company thrives on innovation, it has well-developed marketing strategy. The management of the company consists of people who have substantial experience in matters of social media communication, thus contributing to company’s development and success (Dess, Lumpkin, Eisner et al., 2012).

Primary weakness

Due to the increasing cost of operation, services and products are becoming more expensive. This can prevent other interested service providers from seeking consultation. Other users of social media, especially those belonging to the lower income category, also find it difficult to seek consultation services because of high prices. Economic conditions in Europe, America, and Asia, which constitute the largest primary markets, have deteriorated in recent years due to unprecedented financial crisis. This reduced the need for consultation. Indeed, such changes might affect operations of the company and are expected to contribute to its weaknesses (Dess, Lumpkin, Eisner et al., 2012). Therefore, the company should promote its products and services to large organizations apart from other small social media providers and individual users. This is expected to attract a larger market from business entities providing such services.

External Factors

Primary opportunity

Population in Europe, United States, Asia, and the rest of the world is increasing. Thus the company is likely to face pressure due to probable increase in the demand for consultancy products and services in the coming years. Technological development in communication will also present an opportunity for the company. Thus it will benefit from offering its consultation services in a more efficient manner. Emerging world market is eager to adopt the latest technological communication advancements, thus social media provides have a great opportunity for development on a global platform. The company’s effort to increase efficiency also presents an opportunity for future growth (Clegg, KornBerger & Pitsis, 2005).

In addition, the company intends to establish branches in many parts of the world. This ensures its security and gives opportunity for further development. Since the world is becoming increasingly inclined towards the use of social media communication, the company has an opportunity for future growth because its social media consultancy services will be of high value for related businesses and Internet users. Furthermore, people always demand high quality products and services. Since all company’s services are high quality, it has opportunity for further growth and development (Barney & Hesterly, 2009). 

Primary threat

Usually, businesses face several threats during their operations. Hawaii Social Media Consulting Company is not an exception. For example, rules and regulations of the social media industry change consistently, thus creating a challenge for the company. Furthermore, there has been a rise in the number regional and international competitors providing similar services. Their presence threatens the establishment and operations of the company. Finally, the cost of consultancy on matters dealing with social media is expected to rise in the future, thus threatening the size of company’s customer base.

External Forces and Trends Considerations

Legal and Regulatory

Every company’s operation is guided by the rules and regulations of the host country. In this regard, the company has to adhere to the rules that guide social media and make sure that it upholds confidentiality regulations (Dess, Lumpkin, Eisner et al., 2012). This means the company should monitor global legal policies relating to social media and technological advancement so that it could adjust its consultancy services according to the provisions of such regulations. The company should also be able to detect weaknesses in international social media communication and capitalize on them.   

Economic

Global economic forces and trends are important factors for the company in making sure that the threats which emanate from trade and industry situations are minimized. Some economic problems which might arise include changes in consumer preferences, global economic downturn, and financial crisis (Dess, Lumpkin, Eisner et al., 2012). Since these factors affect potential consumer’s choice, the company must be able to analyze them and incorporate solutions to these problems in its policies.    

Competitive Analysis

Literally, competition is unavoidable in the global business arena. This does not decrease the motivation of potential investors to start a business, but motivates them to ensure the relevance of activities to potential consumers. This means that the company should be strategically positioned to benefit in the competitive market (Barney & Hesterly, 2009). Therefore, strategic options initiated and practiced by the company have to be adjustable and flexible so that the company could capitalize on global business dynamics and trends. In this regard, the company should stay resistant to temporary uncertainties in its strategic mission, meaning that it should easily change its mode of operations to suit prevailing economic and technological conditions and remain relevant despite aggressive competition from other investors (Barney & Hesterly, 2009).

Internal Forces and Trends Considerations

Strategy

The only important thing that a company should do to remain completive in the market is to develop and apply a workable strategy that is adjustable to global changes. The approach that the company will use in making decisions and dealing with competition will help it to minimize the impact of external environment on its internal strategies (Dess, Lumpkin, Eisner et al., 2012). Although the company has several weaknesses and potential threats caused by global dynamics and competitors, it can develop a strategic option that would make it easier to use its strengths and opportunities to maximize the gains in the competitive global market.

Culture

Company’s culture determines the effectiveness and efficiency of its operations. In this sense, the expected coordination, honesty, integrity, and hard work within the internal environment of the company are all components of its culture (Bazerman & Banaji, 2004). In addition, clear articulation of organizational culture makes it a leader in providing social media consultancy and enables the organization to benefit from the growing market over the years. Furthermore, the anticipated growth of social media market and organization’s culture of hard work are closely linked to its efficiency. They enable the company to develop unique consumer-oriented products (Bazerman & Banaji, 2004).

Leadership

Success of a company depends on the nature of its leadership. Here, effective leadership has to make sure that operations proceed uninterrupted. The management of Hawaii Social Media Consulting Company adopts proactive leadership and competitive policies, which are flexible to change (Bazerman & Banaji, 2004). Apparently, effective and responsible leadership is likely to encourage innovation of products and services that the company provides. In addition, the kind of company’s leadership determines the relationship between the management of the company and its staff (Bazerman & Banaji, 2004). Therefore, the leadership of Hawaii Social Media Consulting Company must be effective to contribute to the success of the company 

Major Decisions

Considering the selected forces and trends, major decisions have to revolve around efficiency and effectiveness. With the view that competition from rival companies will be increasing over the years, Hawaii Social Media Consulting Company should be prepared to survive this situation through strategic planning and implementation of strategic policies. First, the company should embrace improvement of technology and apply it while offering its consultancy services. Therefore, the situation calls for detailed evaluation of possible strategies if the company intends to remain at the top of the market and avoid failures.

Secondly, as the company strives to succeed in the future, it should take keen interest in a number of strategic options. For example, the company should focus on global economic and technological development so that it could adjust to global trends. Notably, technological changes are important for company’s success in all its business initiatives.

Major Recommendations

The main strategic recommendation for the company is to focus on providing cheap consultation services and especially focus on premium quality to attract prospective customers who are limited by their level of income. This will be the sure way of achieving success by the company and making it stand out among similar service providers. Therefore, in cases where external environment poses a great threat to internal affairs and strategies of the company, especially those related to social media industry and market, the management should adopt competitive policies, which would help the company to beat competition in the market. Certainly, this can be achieved through encouragement of innovation of its products and through the use of effective marketing strategies aimed to minimize competitors’ impact.

Conclusion

In summary, Hawaii Social Media Consulting Company is successful due to its strategic approach and innovation in providing high-quality social media consultancy. Indeed, these factors enhance organizational strategic capability and increase stakeholders’ expectations about company’s products and services. By implementing  strategic policies and adopting innovative ways of communication, Hawaii Social Media Consulting Company will be able to deliver high quality social media consultation products and services and meet specific consumer demands. 

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