Analysis of the Internal Environment

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Analysis of the Internal Environment The Tootsie Roll Industries commands 2 to 3 percent of the overall market as the eight largest candy manufacturers. The candy industry is not a mature industry; therefore Tootsie Roll Industries competition is other candy and ready to eat markets. Tootsie roll has distinctive competencies in candy making technology, production processes and operational management. These competencies have helped the organization maintain its competitive advantage and cost leadership position. The resource based view argues that companies posses some unique resources (assets and capabilities) and competitive advantage is acquired by accumulating those strategic assets. Resources are any tangible (equipment, raw material) or intangible (firm image, processes, routines) things that a company owns and can use to carry out its crucial processes. Resource based view focuses on the resources and capabilities possessed by the firm to analyze the profitability and value. According to the view an organization is a bundle of resources, which fall into five general categories of financial resources, physical resources, human resources, knowledge and learning resources, and general organizational resources. The Tootsie Roll Industries efficiency employs further review in tangible resources, intangible resources, capabilities, and core competencies as a strategy to achieve the highest ranking in the candy market. Tangible resources are resources that can be seen, touched, and/or quantified according to the text book. Tootsie Roll Industries using Financial Resources has the ability to generate internal funds. In the year of 1994, net income has increase to $37.9 million as compared to $22.6 million in 1990. Including a retained begin year earnings of $96,647; up $13,140 from 1992.This statistical data makes Tootsie Roll a prime target for a takeover,

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