External and Internal Analysis

820 Words4 Pages
External and Internal Analysis STR/581 External and Internal Analysis External and Internal Environmental Analysis Michelle L. Jackson STR/581 May 21, 2012 Dr. Minuado External and Internal Environmental Analysis Luluemon is a Canadian based company founded in 1998 by Chip Wilson and exercises their “manifesto’s” ideals to establish their mission, drive innovation, and encourages a thriving community and organization. Executing a successful strategic planning requires management detail analysis of internal and external factors that may affect company’s profitability. In analyzing internal and external factors Lululemon’s management has decided to perform the following analysis to assess it strength, weaknesses, opportunities and treats: 1- SWOT analysis: To review the company’s available resources and capabilities 2- Comparison Analysis: To review competitor weakness and strengths SWOT Analysis: SWOT analysis is most commonly method of analyzing internal (strength and weakness) and external (opportunities and treats) issues to formulate an strategies that maximize company’s strength and opportunities and minimized treats and weakness ( Pearce & Robinson, 2011). An examination of Lululemon’s strengths, weaknesses, opportunities, and threats (SWOT) is vital to understand objectively the current situation the company is facing. External Environmental Factor In analyzing the existing and future environmental factors that may affect company’s profitability we review the remote environmental factors that present opportunities as well as treats and constraints such as (Pearce & Robinsons. 2011): 1- Economic 2- Social 3- Political 4- Technological 5- Ecological The ongoing changes in the external environment of the organization impacts the decisions that Lululemon will need to make to remain
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