Internal and external environment analysis of a bakery

Organizational environment consists of both external and internal factors. The environment must be from scanning and determine a development and prediction of the factors that can affect organizational success. Environmental scanning means of possession and usury occasions, information patterns, trends, and in a relationship of enterprise internal and external environmental impact. It helps managers to decide the future path of organization, the company must confirm threats and opportunities exist in the environment. When strategy formulation, organization should take advantage of this opportunity and mitigate the threats. A threat to an institution may have the opportunity to another.

Internal environment is analyzed the first step of scanning environment. The organization shall abide by internal organizational environment. This includes staff and other employees, employee interactions and management, the manager interaction and other coach interaction, management and shareholders get natural resources, brand awareness, organization structure, key personnel and operating space. Meanwhile, discussions, interview and investigation can be used to assess the company’s internal environment. Analyzing internal environment help identify strengths and weaknesses of an organization.

As business become more competitive and rapid changes in the external environment, information from the external environment of the key factors to increase effective long-term plan. As environment is dynamic, it becomes competitor move must identify and action. Organization also updates core competitiveness and internal environment according to the external environmental impact.

Environmental factors is infinite, therefore, the organization should be agile and accept and adjust to changes in the environment. A business functions not in vacuum. It must take action and respond to face external factories and offices happening. These factors of business happening outside called external factors and influences. These will affect the business of the main internal functions and possible business and strategic objectives.

Main factors that affect the most enterprises are the degree of competition is how to make fierce competition in other industries and another enterprise. Other factors that can affect business are society, the legal, economic, political, scientific, and technological ethics.

Scanning the internal and external environment is an important part of the strategic planning process. The internal environment factors are usually divided into strength (S) and disadvantages (W), that external company can be divided into opportunities (O) or a threat (T). Such an analysis of strategic environment is considered a SWOT analysis.

The importance of SWOT analysis and provides information to match is very useful resource and ability of the company competition environment, this operation. Similarly, it helps strategy formulation and selection.

The SWOT analysis framework has been widely accepted, because it is simple and powerful strategy development. However, like any planning tool, SWOT is only as good as the information content. In-depth market research and accurate information system, important is to determine the key problems of SWOT analysis of environment.

Today I am writing the report on a small and local enterprise is Lavender Confectionery &Bakery. Today I also very honored to have access to the Lavender Confectionery & Bakery the executive manager, namely Lavender Confectionery & Bakery owner’s son is Tam Yong Wen.

Lavender Confectionery & Bakery is a small enterprise in Malaysia, he opened in Malaysia has 11 years of history. He also in our country have nine between branches, respectively is in Kuala Lumpur and Johor. Lavender Confectionery & Bakery is a Bakery in Malaysia. It is currently heated conversation and continue to have in the bread enthusiasts from abroad, earn profit is Lavender bread. Lavender bread will be so much attention and viewed and discussed, encroach buyers, this is because in every product, they are using eastern and western merger way. For example, if the bread is from a western characteristics, but also gives Oriental element. Quality is enterprise’s main process. Therefore, we invite experts to join our team Bakery, both from France, Hong Kong and Taiwan, their strict for our check all bread and monitor all production process. So our bakery will so successful.

In every company has internal analysis of advantages and disadvantages, such as I found the postal service is provided to every home and business in the United States, every American has entered its services and pay the same postage no matter where they live and work. A weakness I found is the government’s control operations, they seem to be shut down more than other facilities, leaving a blank items could be saved.

Every company also has external analyzing opportunities and threats. A chance I found that even some reptiles, they have no pains so ships ever snake shipment. A snake industry is a booming industry, more people are more likely to experience them if ship snakes, but they don’t like. This threat I found, since don’t open on certain days, because other rival company, people can take their business elsewhere.

Here are some of proposed my strengths problem with Yong Wen. Some in business is what makes you in your competitors out of before. And his answer is for our product I have 100persen confident, we adopt the most top and quality is made of the best materials to produce our each piece of bread, also after professional teachers review will take place on market sale. Next is what are the merits or benefit to bistro business care? Because I know the business bread better than bistro. He answered our bistro although business as bread comes well, but also to have certain market. Because we inside food is not each restaurant can be found, we adopt the Chinese way, also have a spell of American English or Chinese food. And in dining customers also can choose bread came in, so it can also enjoy the bistro upgrade our business.

Third, what are the major source of your company’s revenue and profit? Our company main source of revenues and profits from bread and cake, because we got more than 200 to 300 bread species. Some bread cost is high, so naturally we price will the price than general bakery come high, but as long as you try, you will perceive where different. In cake that on the one hand, we also not in retail stores, we also have received orders, such as wedding cake, bread and full moon cake.

For your company is strong brand or have some best-selling products? He is sure answer has, we brand of moon cakes and cookies are in the best-selling. This is because in every moon cake festival or lunar New Year we will use plenty of time to prepare our products, definitely not slovenly take out the product sell. And we are halal, so customers can appeal to the Malay compatriots, Chinese New Year festival gifts with our product is the best gift. The key is that we care about health, we use our customers the oil is vegetable oil and sugar also uses sweeteners to let the customer with diabetes can be safely edible.

Next is the problem about weakness. Your customers have complained and are about what? We will meet different types of customers, some of them will complain products on this little short weight, we’ll have patiently explain to them or apology, product and will change a for them. In at this point, we’ll also ask reason, to master the improvement methods in research. But our products are produced according to certain components come out, absolutely no cutting corners.

Second, what product not and cannot meet your sales? These products and certain we cannot say we products must be best for sales bad product we can further study and improve methods of master research. If this product sales or bad, we’ll turn it into another kind of new products, also let customers to try new products.

Third in what areas is the company cannot restore cost? Can’t restore cost is our development new bread, because the customer cannot try, in the new products we cost is high, so our price is high also cause could not recover cost in the near future.

For example we now have developing a new bread called ‘Black Diamond’, we are using Japan’s chocolate, it made of soft tasty and wrestling like chocolate customers will like it. But the high cost of this bread, our price is RM10, so we initially take back the cost.

Fourth, advertising for sales effective? Advertising for sales have certain help, it enables customers to our new product with interest and will help us to ascend turnover. We will only when the season advertise for propaganda, because in the season with before we will develop different new flavors to our customers to try and give them a different feeling.

The next question is about opportunity. And emerging trends, accord with your company’s strengths? This is of course, although now more and more the bakery bread species will increase gradually, but our brand in the market have 10 years of history, so customers would still choose our bread.

Second, what product or service area is you haven not care? For product, we have sufficient preparation and using the best materials for our products, so there are no bigger problems temporarily. About services, we hire employees we will each month, meetings and training to them, let them know more about our company and products and know, so that they can kiss and every face and answering customer’s problem.

Third, what is your face in the favorable environment? On our company under favorable circumstances we face is the customer, if do not have a customer support, we wouldn’t have today. So we will often developed new bread to feedback customers. Here, there will be a favorable environment because our product also have certain level, so would get customers loved them.

Fourth, your company will enter new markets? Our company will enter new markets, at present we now has three stores in KL, but may we will open in two more branches in KL, JOHOR six stores will also establish a belong to our own factory in JOHOR. Our market will become more big will increase our revenue and profit.

Fifth, your company has advanced technology? Yes, our company has advanced technology and equipment, so we made the product has a certain standard level. Our equipment imported from Japan, and each year we will inspection and maintenance to ensure that he product won’t have any problems and change.

Finally is about the threat. Your opponent is more and more strong? Our opponents have a lot, we cannot say they very strong or it’s fall, we can only say that every company have their advantage or placement also have their own market. For our opponents, we will not therefore backwards or retreat, we will be more efforts to develop new products to defeat your opponents.

Second, you have seen outside threats your company succeed? Based on my experience and speculation, external about our company’s influence or threat and no great role and threatening. Our company has a solid foundation of, so not every company can easily threats.

Third, in internal you have financial, development, or other issues? In the present situation, we see not facing these problems, because our company financial aspects still pretty stable and development to also very smoothly.

Fourth, what is your competition? Our competitors a moment in every day, the promotion of their products to sell, but that the devaluation of our company’s not influence, and we are absolutely won’t use the same method to make our products accordingly and depreciation.

About our company’s threats and weakness, our company can have the solving methods. We will hold a meeting to discuss our placement and the insufficient place, if is about product problems, we can and teacher discussion and study and find the improvement methods. If customer complaints about the problem, we will review the problem and explained to customers. About competition, we would work to make our products to be the best, do not let other brands have the opportunity to step in.

Conclusion

Does a report strong influence on me, because this report let me touch I never had contacted characters and I have never experienced feeling. I realize now run a company originally is not so simple, it is need pay than the average people to get achievements. Yong Wen is a very young entrepreneur, let I to he had to admire.

Lavender Confectionery & Bakery will have today are all have their efforts, they did not give up any opportunity, difficulty not shrink back not retreat, stick with the best material in any products, the purpose is to let their customers believe them.

Help visualize the SWOT matrix analysis. Similarly, when performing this analysis, the important thing is to understand how these elements in working together. When an organization inside advantages to match its external opportunities, it creates the core competitiveness in meet the needs of its customers. In addition, an organization internal weaknesses performance should be converted into advantages and external threat into opportunities.

The ultimate goal is an internal use the information analysis for strategic planning, this means that the company’s plan to promote growth and success and leadership in the marketplace. Sure business strengths and weaknesses translate into goals take necessary measures.

Finally, in this report I also thank Yong Wen can spare time to accept my visit. I now know running a company is to pay time and efforts, with pay will reap the rewards.