Internal and External Environment

1. Use APA formatting
   Discussion Tips:
   • Avoid repeating of explicit information in the text. Formulate answers that can be interpreted through various perspectives.
   • Compare, contrast, and look for connections between articles assigned on a given day with each other or with past articles assigned for class.
   • Look for gaps in authors’ reasoning or statements that you find problematic.
   • Think about the broader issues that the author’s arguments point to. What are the broader implications?
   • Look for connections between theoretical pieces assigned and concrete actions that can be taken to put them in practice.
   • Consider connections to current event issues.
   Make certain that all posts or responses address the question, problem, or situation as presented for discussion. You should extend the topic, but do not stray from the topic. When relevant, add to the discussion by including prior knowledge, work experiences, references, web sites, resources, etc. (giving credit when appropriate).
   Discussions occur when there is dialogue; therefore, you need to build upon the posts and responses of other learners to create discussion threads. Contributions to the discussions should be complete and free of grammatical or structural errors.
2. Assignment Description
   For the final Capstone Project, graduate students will design a brand new company. To spark innovation and as students compile information, it is important to look at other companies in the same industry. Take a look at various sources to find a company that you would like to use for this assignment. The company does not have to be one of the larger popular companies, but it should be an organization whereby you can find data. You should not just choose any company, but make sure it is an organization in an industry that you either are, or can become, passionate about moving forward. Maybe it’s an organization whereby you can see yourself working.
   Answer the following questions.
3. Where does the company compete?
4. What unique value does the company bring?
5. What resources does the company utilize?
6. How do they sustain the value? Assignment Instructions
7. Choose an organization and answer the four questions that are listed.
8. Provide a brief overview of the organization in one paragraph.

( I WILL LIKE TO FORCUS ON APPLE )

2. Discussion: Internal and External Environment
   No unread replies.No replies.
   DISCUSSION 2 & ASSIGNMENT 2 FORCUS ON CHAPTER 2 & 3
   Discussion Description
   In this module we investigate conditions in the environment that may be present when planners are determining strategies for the firm. Legal, social and cultural limitations exist to bind the firm to certain behaviors. As we know, the world has experienced a global pandemic and has had to adapt, therefore certain external factors that may not have been present before are certainly active now.
   Discussion Instructions
   Let’s address how managers are communicating on a large stage in the aftermath of a global pandemic as we all navigate around our new normal. Answer the two questions associated with this module’s readings. Please share examples for this discussion board.
3. How can organizations effectively align their resources and capabilities with their external environment to achieve a sustained competitive advantage?
4. How do firms identify internal strengths and weaknesses, and why is it vital that managers have a clear understanding of their firm’s strengths and weaknesses?

• Complete Discussion Question by Thursday evening no later than 11:59pm, and respond to at least two classmates by Sunday before 11:59pm est.
• You have to post your discussion before you can see any other replies.
• Use APA (Links to an external site.) formatting
Discussion Question Tips:
o Avoid repeating of explicit information in the text. Formulate answers that can be interpreted through various perspectives.
o Compare, contrast, and look for connections between articles assigned on a given day with each other or with past articles assigned for class.
o Look for gaps in authors’ reasoning or statements that you find problematic.
o Think about the broader issues that the author’s arguments point to. What are the broader implications?
o Look for connections between theoretical pieces assigned and concrete actions that can be taken to put them in practice.
o Consider connections to current event issues.
Make certain that all posts or responses address the question, problem, or situation as presented for discussion. You should extend the topic, but do not stray from the topic. When relevant, add to the discussion by including prior knowledge, work experiences, references, web sites, resources, etc. (giving credit when appropriate).
Discussions occur when there is dialogue; therefore, you need to build upon the posts and responses of other learners to create discussion threads. Contributions to the discussions should be complete and free of grammatical or structural errors.

2. Assignment Description
   Identify the external and internal environment of a company or organization in the same industry as the company you will be creating for the final Capstone project. Through this process of researching, it will tie together and expand the knowledge area for the final Capstone project.
   External factors are influences outside of a company that can impact a business. Most dominantly, this includes the economic and political environment of a country, competitors, technological changes, and customers. There can be slight variations of this as indicated in the Environmental Factors diagram. Factors outside of a company that affect its ability to operate are considered part of the external environment. Some external elements can be manipulated by marketing while others require the company to make adjustments. Many times, these external factors are difficult to control or even predict, and can be downright confusing. Managers should oversee the basic components of their company’s external environment, continually keeping close watch for any significant changes.
   Internal factors are the strengths and weakness of a company that can affect how the company meets its main goals and objectives. Factors such as leadership styles, the company’s mission statement, and its organizational culture are frequently considered to be internal. Employee behavior is defined by the company’s internal environment. This internal environment is made up of the variables within the company that include the current employees, management, and the corporate culture. Companies need to have the proper people in place in order to motivate their team of employees and to have knowledge of the different factors that can affect a company’s earning potential. Assignment Instructions
3. Name the company and state the product or service
4. What is the Industry (i.e. airline, beverage, chemical, electronics, etc).
5. Identify the mission statement and provide your opinion of the company’s corporate culture
6. What is the company’s leadership style?
7. Describe the current market environment
8. Identify threats and why they are perceived as threats
   o Include at least five:
9. Laws and Regulations (Coercive restrictions)
10. Economic Factors
11. State of technology
12. Demographics affecting the firm
13. Social issues
14. Supplier initiatives
15. Resource constraints (natural and human)
16. Discussion: Business of Innovation
    No unread replies.No replies.
    DISCUSSION 3 & ASSIGNMENT 3 FORCUS ON CHAPTER 4 & 5
17. Discussion Description
    YOUTUBE LINK: https://youtu.be/4MoZVTf9_e8

Innovation is the process whereby new and improved products, processes, materials, and services are developed and transferred to a plant and/or market where they are appropriate. Management of Innovation is a comprehensive approach to managerial problem solving and action based on an integrative problem-solving framework, and an understanding of the linkages among innovation streams, organizational teams, and organization evolution. It is about implementation—managing politics, control, and individual resistance to change.
Goals and benefits of developing the knowledge system may be the ability to help customers with product questions, the ability to share information with constituents in a timely manner, the ability to interact with creative partners to increase innovation capabilities etc .Each of these goals mentioned could help the organizational performance by increasing service to customers, stakeholders and creative partners. Additionally, knowledge systems can provide an avenue for improved communications.
Innovation and Strategic Management should not only be approached from the functional level of the organization, but corporate level as buy-in creates an organization that is forever adapting and changing.
In this discussion the learner will demonstrate their understanding of innovation, which will lead to a more comprehensive approach to how strategic leaders use innovation to create a competitive advantage in their organizations. The attached video is succinct, but provide points that can be extrapolated for one to meet the objective of the study of innovation.

Discussion Instructions
• Use the video on innovation in the discussion description along with your assigned readings this week to understand and synthesize the process of Innovation.
• Write an initial discussion post by answering these questions below:
 In what ways can organizations effectively manage their innovation portfolio to achieve a balance between the need to invest in current products and services (exploitation) with the need to investigate new opportunities and markets (exploration), and what do you feel are the key success factors for implementing this strategy in a dynamic and uncertain business environment?
 How would you use the concepts in the video to innovate in the current business climate?

• Complete Discussion Question and respond to at least two classmates.
• You have to post your discussion before you can see any other replies.
• Use APA (Links to an external site.) formatting
Discussion Question Tips:
• Avoid repeating of explicit information in the text. Formulate answers that can be interpreted through various perspectives.
• Compare, contrast, and look for connections between articles assigned on a given day with each other or with past articles assigned for class.
• Look for gaps in authors’ reasoning or statements that you find problematic.
• Think about the broader issues that the author’s arguments point to. What are the broader implications?
• Look for connections between theoretical pieces assigned and concrete actions that can be taken to put them in practice.
• Consider connections to current event issues.
Make certain that all posts or responses address the question, problem, or situation as presented for discussion. You should extend the topic, but do not stray from the topic. When relevant, add to the discussion by including prior knowledge, work experiences, references, web sites, resources, etc. (giving credit when appropriate).
Discussions occur when there is dialogue; therefore, you need to build upon the posts and responses of other learners to create discussion threads. Contributions to the discussions should be complete and free of grammatical or structural errors.

3. Assignment Description
   Mini-Case The Ripple Effect of Supermarket Wars: Aldi Is Changing the Markets in Many Countries
   Aldi started as a small, family-owned grocery store located in Essen, Germany, in 1913. Two sons, Karl and Theo, took over the store from their mother in 1946; soon after doing so, they began expanding the business. They emphasized low costs from the very beginning, allowing them to offer their products to customers at low prices relative to competitors. Over time, Aldi expanded to other European countries, and it entered the United States market in 1976. Currently, there are roughly 11,000 Aldi stores located in 20 countries; 1,750 of these units are in 35 states in the United States. In the United States alone, the firm serves 40 million customers on a monthly basis.
   Aldi holds its costs down in a variety of ways. It largely sells its own brand-label products in “no frill” stores. The company limits the number of external brands it sells (usually one or two per product), and it has low packaging, transportation, and employee costs. To sell products in its stores, Aldi positions them in ways that are similar to the approach warehouse stores use, for example, placing products on pallets and in cut-away cardboard boxes. In Germany, Aldi advertises very little, but it does advertise in the United States. It produces its own ads in-house (no external agency) and advertises mostly through newspaper inserts and a few television commercials.
   Aldi and another discount store, Lidl, have hurt the largest four supermarkets in the U.K. market—Tesco, Walmart’s Asda, J Sainsbury, and Wm. Morrison Supermarkets. Aldi and Lidl have captured market share from these retailers, especially Tesco and Morrison, and held approximately 8.6 percent of the U.K. market in 2016. Aldi plans call for it to reach about 17 percent share of the market by 2021. Tesco has controlled about 30 percent of the discount supermarket market, but it has been declining. Morrison’s recent poor performance has precipitated turnover in most of the firm’s top executives. In addition, the new CEO, David Potts, has been making major changes—largely cutting costs in order to compete on prices. Because of reduced costs, Morrison cut its prices on 130 staple items such as milk and eggs. Likewise, Tesco reduced prices of 380 of its brand
   products by about 25 percent. Yet, because of gains in its market share, Aldi plans to invest about $900 million to open 550 new stores in Britain by 2022.
   Aldi is having similar effects on the Australian market. It has gained market share from the two largest supermarkets in Australia—Coles and Woolworths. In response, Woolworths indicated that it plans to reduce its prices to avoid a perception among customers as the “expensive option.” This action does not seem to concern Aldi in that the firm intends to spend $700 million to add 120–130 stores by 2020 to its current number of 300 stores in Australia.
   Aldi appears to be harming some competitors in the United States as well. For example, a rival discount food retailer, Bottom Dollar owned by Delhaize from Belgium, closed all of its stores (located in New Jersey, Pennsylvania, and Ohio) and sold the locations and leases to Aldi. Aldi does have stiffer competition in the United States from Walmart, Sam’s (Walmart’s warehouse stores), and Costco, among other discount food retailers. Yet, Aldi is not only surviving, but also flourishing and growing in the U.S. market as well. In early 2018, Aldi announced that it would spend $1.6 billion to remodel and expand 1,300 U.S. stores by 2020. Desiring to have 2,500 stores in the United States by 2022, the firm announced in 2018 that it would spend up to $3 billion to open new stores to reach this target. If reached, a total number of 2,500 stores would result in Aldi being the third largest supermarket chain in the United States.
   In addition to affecting grocery store competitive rivalry across country boundaries, Aldi’s actions (and those of others as well) have an effect on wholesalers and other suppliers. For example, wholesale prices have been declining, and some of the major supermarket chains, such as Tesco and Morrison, have been reducing the number of brands on their shelves. Interestingly, manufacturers of popular products, such as Mr. Kipling cakes and Bistro gravy, stand to gain shelf space and increase sales because of stores’ decisions to take some rivals’ products off their shelves. Of course, the suppliers whose products lose their positions on stores’ shelves will likely suffer.
   The bottom line is that Aldi is having a major effect on rivals in multiple countries and on many other companies that supply products to the industry. As a result, the grocery industry’s competitive dynamics are different today than they were before.
   Sources:
   2018, Aldi unveils $1.6 billion nationwide store remodel plan to enhance customer shopping experience, Aldi Homepage, www.aldi.com, Links to an external site.
   February 8; 2017, Motley Fool staff, Setting the stage for grocery industry competition in 2018,
   Motley Fool Homepage, www.fool.com, December 24; 2014,
   Aldi targets doubling of UK stores with 600 million pound investment, New York Times, www.nytimes.com, November 10;
   T. Hua, 2015, Tesco’s overhaul points to a price war, Wall Street Journal, www.wsj.com, January 5;
   L. Northrup, 2015, Bottom dollar food to close stores, sell chain to Aldi, Consumerist, www.consumerist.com, January 5;
   2015, Mr. Kipling Maker Premier Foods sees positives in supermarket wars, New York Times, www.nytimes.com, January 23;
   2015, Morrisons cuts prices on 130 grocery staples like milk, eggs, New York Times, www.nytimes.com, February 15;
   2015, British shop price decline steepens in February—BRC, New York Times, www.nytimes.com, March 3; K. Ross,
   2015, Supermarket wars: Aldi takes on market share as Woolworths drops prices, Smart Company, www.smartcompany.com.au, March 9; A. Felsted,
   2015, Morrison chiefs take express checkout from struggling supermarket, Financial Times, www.ft.com, March 24; 2015, Aldi Foods, www.grocery.com, accessed March 25.
   Assignment Expectations
   Read the short end-of-chapter case and answer questions in the following areas.
   Case Discussion Questions
4. Using materials in the case and items to which you gain access through a search, describe how Aldi is creating competitive rivalry in the retail grocers’ industry.
5. As explained in this chapter’s Opening Case, Amazon purchased Whole Foods. How will this transaction affect Aldi as it seeks to expand its presence in the United States? What competitive actions might Aldi take in response to Amazon’s purchase of Whole Foods?
6. Using concepts and actions explained in this chapter, decide if Aldi is more likely to respond to any strategic actions Amazon might initiate through Whole Foods or if Amazon through Whole Foods is more likely to respond to any strategic actions Aldi takes. Be prepared to justify your decision.
7. In a competitive rivalry sense, explain the actions (strategic and/or tactical) you believe Walmart and Costco will take to respond to Aldi’s intentions to have 2,500 U.S. stores by 2020 (and if this truly came to light now that we are in 2022, and how many stores actual exist).

4. Assignment Description
   Mini-Case The Ripple Effect of Supermarket Wars: Aldi Is Changing the Markets in Many Countries
   Aldi started as a small, family-owned grocery store located in Essen, Germany, in 1913. Two sons, Karl and Theo, took over the store from their mother in 1946; soon after doing so, they began expanding the business. They emphasized low costs from the very beginning, allowing them to offer their products to customers at low prices relative to competitors. Over time, Aldi expanded to other European countries, and it entered the United States market in 1976. Currently, there are roughly 11,000 Aldi stores located in 20 countries; 1,750 of these units are in 35 states in the United States. In the United States alone, the firm serves 40 million customers on a monthly basis.
   Aldi holds its costs down in a variety of ways. It largely sells its own brand-label products in “no frill” stores. The company limits the number of external brands it sells (usually one or two per product), and it has low packaging, transportation, and employee costs. To sell products in its stores, Aldi positions them in ways that are similar to the approach warehouse stores use, for example, placing products on pallets and in cut-away cardboard boxes. In Germany, Aldi advertises very little, but it does advertise in the United States. It produces its own ads in-house (no external agency) and advertises mostly through newspaper inserts and a few television commercials.
   Aldi and another discount store, Lidl, have hurt the largest four supermarkets in the U.K. market—Tesco, Walmart’s Asda, J Sainsbury, and Wm. Morrison Supermarkets. Aldi and Lidl have captured market share from these retailers, especially Tesco and Morrison, and held approximately 8.6 percent of the U.K. market in 2016. Aldi plans call for it to reach about 17 percent share of the market by 2021. Tesco has controlled about 30 percent of the discount supermarket market, but it has been declining. Morrison’s recent poor performance has precipitated turnover in most of the firm’s top executives. In addition, the new CEO, David Potts, has been making major changes—largely cutting costs in order to compete on prices. Because of reduced costs, Morrison cut its prices on 130 staple items such as milk and eggs. Likewise, Tesco reduced prices of 380 of its brand
   products by about 25 percent. Yet, because of gains in its market share, Aldi plans to invest about $900 million to open 550 new stores in Britain by 2022.
   Aldi is having similar effects on the Australian market. It has gained market share from the two largest supermarkets in Australia—Coles and Woolworths. In response, Woolworths indicated that it plans to reduce its prices to avoid a perception among customers as the “expensive option.” This action does not seem to concern Aldi in that the firm intends to spend $700 million to add 120–130 stores by 2020 to its current number of 300 stores in Australia.
   Aldi appears to be harming some competitors in the United States as well. For example, a rival discount food retailer, Bottom Dollar owned by Delhaize from Belgium, closed all of its stores (located in New Jersey, Pennsylvania, and Ohio) and sold the locations and leases to Aldi. Aldi does have stiffer competition in the United States from Walmart, Sam’s (Walmart’s warehouse stores), and Costco, among other discount food retailers. Yet, Aldi is not only surviving, but also flourishing and growing in the U.S. market as well. In early 2018, Aldi announced that it would spend $1.6 billion to remodel and expand 1,300 U.S. stores by 2020. Desiring to have 2,500 stores in the United States by 2022, the firm announced in 2018 that it would spend up to $3 billion to open new stores to reach this target. If reached, a total number of 2,500 stores would result in Aldi being the third largest supermarket chain in the United States.
   In addition to affecting grocery store competitive rivalry across country boundaries, Aldi’s actions (and those of others as well) have an effect on wholesalers and other suppliers. For example, wholesale prices have been declining, and some of the major supermarket chains, such as Tesco and Morrison, have been reducing the number of brands on their shelves. Interestingly, manufacturers of popular products, such as Mr. Kipling cakes and Bistro gravy, stand to gain shelf space and increase sales because of stores’ decisions to take some rivals’ products off their shelves. Of course, the suppliers whose products lose their positions on stores’ shelves will likely suffer.
   The bottom line is that Aldi is having a major effect on rivals in multiple countries and on many other companies that supply products to the industry. As a result, the grocery industry’s competitive dynamics are different today than they were before.
   Sources:
   2018, Aldi unveils $1.6 billion nationwide store remodel plan to enhance customer shopping experience, Aldi Homepage, www.aldi.com, Links to an external site.
   February 8; 2017, Motley Fool staff, Setting the stage for grocery industry competition in 2018,
   Motley Fool Homepage, www.fool.com, December 24; 2014,
   Aldi targets doubling of UK stores with 600 million pound investment, New York Times, www.nytimes.com, November 10;
   T. Hua, 2015, Tesco’s overhaul points to a price war, Wall Street Journal, www.wsj.com, January 5;
   L. Northrup, 2015, Bottom dollar food to close stores, sell chain to Aldi, Consumerist, www.consumerist.com, January 5;
   2015, Mr. Kipling Maker Premier Foods sees positives in supermarket wars, New York Times, www.nytimes.com, January 23;
   2015, Morrisons cuts prices on 130 grocery staples like milk, eggs, New York Times, www.nytimes.com, February 15;
   2015, British shop price decline steepens in February—BRC, New York Times, www.nytimes.com, March 3; K. Ross,
   2015, Supermarket wars: Aldi takes on market share as Woolworths drops prices, Smart Company, www.smartcompany.com.au, March 9; A. Felsted,
   2015, Morrison chiefs take express checkout from struggling supermarket, Financial Times, www.ft.com, March 24; 2015, Aldi Foods, www.grocery.com, accessed March 25.
   Assignment Instructions
   Read the short end-of-chapter case and answer questions in the following areas.
   Case Discussion Questions
5. Using materials in the case and items to which you gain access through a search, describe how Aldi is creating competitive rivalry in the retail grocers’ industry.
6. As explained in this chapter’s Opening Case, Amazon purchased Whole Foods. How will this transaction affect Aldi as it seeks to expand its presence in the United States? What competitive actions might Aldi take in response to Amazon’s purchase of Whole Foods?
7. Using concepts and actions explained in this chapter, decide if Aldi is more likely to respond to any strategic actions Amazon might initiate through Whole Foods or if Amazon through Whole Foods is more likely to respond to any strategic actions Aldi takes. Be prepared to justify your decision.
8. In a competitive rivalry sense, explain the actions (strategic and/or tactical) you believe Walmart and Costco will take to respond to Aldi’s intentions to have 2,500 U.S. stores by 2020 (and if this truly came to light now that we are in 2022, and how many stores actual exist).

• Note: Two recent articles to support content from textbook to make it more applicable to current times and how it pertains to recent pandemic events. https://querysprout.com/aldi-competitive-advantages/ (Links to an external site.) and https://www.producebluebook.com/2022/04/05/study-shows-aldi-led-grocery-growth-since-start-of-pandemic/# (Links to an external site.)
• Parameters of this assignment: minimum of two pages in APA style format.
• Submit to Canvas in the designated column.