The External And Internal Factors Affecting “vermont Teddy Bear Co.inc

he major four functions of management involve planning, controlling, organizing and leading. These functions can be affected by the internal and external factors n a business environment. The external forces that affect the functions of a business include sociological, political, economical and technological (Montana & Charnov, 2000)

External factors:
Sociological: Includes; the demographic status and trends, work ethics and personal values, and general cultures. (pg, 566.) This factors influences differently on how management accomplishes its jobs. The social environment presented by each country is unique and as the business becomes international, management s ought to understand these unique environments. This understanding assists the management to plan for the future and design products for particular groups of people

Economic and political: Includes; all the essential factor such as competitors, suppliers and customers in an open model of business the management must study the economy and political environment for a continual and dynamic relationship. In this system the management assumes that the business or company has both input and output. By studying the companies’ suppliers’, competitors and customers as well as current political factors, the management are capable of making effective managerial and decisions. The products designed under this should posses place, form and time utility to succeed in the mark place.

Technology: Technology has the most dramatic effect on business as changes in this external environment are often quickly felt by firm. As the market can change overnight the management should be in a position to make decisions that will put the company in a flexible poison to adapt with the technological changes (Karger, 1991).

Internal factors
Internal factors or environment of a business consists of the organizational resources available to accomplish its goals. These are human technological, financial and physical resources. The task of management is to acquire these resources and make efficient and effective use of them within an organization. In this task the management of each business is in competition with all other businesses in the life. Organizational resources are therefore scarce and management success depends on how well these resources are both acquired and used. (Montana & Charnove 2000)

In an in-depth analysis of Vermont Teddy bear Co.Inc, the several factors affected the success of the corporation. The first factor is globalization which tends to bring a close interaction of people between different ports do the world with increasing possibilities of personal exchange, mutual understanding and friendship. Technology is the second aspect and refers to the applied techniques which make operations easier. Innovation involves research and development efforts to create a new technology. Diversity is the difference among people and cultures. The final factor in this analysis is ethics which is described as a set of principles of right conduct. The following analysis explains how the above factors impact on the management process when conducting business around the world of Vermont Teddy bear Co.Inc.

Globalization is an important aspect for success growth and survival of a business in the world market. The toddy bear product is 100 years old and commands markets in different countries around the world. (Vincelette. et al 2001) Until 1994, Teddy bear experienced a great deal of success and profitability. This is a credited to the Bear-Gram delivery service to reach the outside world. The company has also since 1998 changed its philosophy by exploring the offshore sourcing of materials outfits and manufacturing in offer to lower costs. Their global networking allows for new ideas and planning meant to capture the global market.

By: Robert II Smith

Understanding Singapore’s Business Environment

Understanding Singapore’s Business Environment

Are you planning to incorporate a company in Singapore?

While Singapore company incorporation is an easy application process, it is essential that you study the business environment because there are several factors that will affect the outcome of your decision.

These include the political, economic, social, technological, legal and ecological environments in which you will incorporate your Singapore company.

Here is a business environmental analysis that will help you familiarise with Singapore’s business environment and facilitate a smooth company incorporation and operation.

BUSINESS ENVIRONMENTAL ANALYSIS

Political Environment

The political structure of a country inevitably affects the way a business operates, as it is the political regime that will enact laws, sets regulations and policies.

Singapore’s parliamentary democracy system is well known for creating a stable and orderly government. The government provides first-rate efficiency and excellence in the public service sector, ensuring that any local or foreign individual wishing to incorporate a company can efficiently conduct business without red tape and bureaucratic delays.

Singapore is also renowned for its extremely low corruption levels within the government and it system.

Creating a pro-business environment with favourable tax laws and funding offers for business ventures has seen consistently ranked Singapore ranked as one of the best places to do business in the world.

It is also tanked as one of the most competitive nations and has several initiatives supportive of business start-ups.

Anyone can incorporate a company in Singapore. If you’re a foreign entrepreneur, all you need is to obtain an Employment Pass or EntrePass to incorporate a company.

Economic Environment

The economic trends of a country are very influential over business operations.

Singapore’s economy has shown continued resilience against most global crisis, and has rebounded with a record 13 per cent growth from the recent global economy downturn.

This rebound not only showed that the Singapore’s forward-looking and alert damage-control measures are always in place and working, it also shows the potential of even bigger growth in Asia’s top leading financial market.

Here are some economic indicators that will help you forecast possible future movement of the economies:

• Potential customer’s spending power

• Potential supplier’s pricing

• Interest rate

• Consumer price index

• Retail sales index

• Wholesale and manufacturing indices

• Inflation rate

• Exchange rate

Singapore’s economical policies on national income, labour market, productivity, investment commitment, and external trade are also consistently fine-tuning their plans to adjust to a dynamic and changing Asian market in order to meet business growth.

Social Environment

Successful enterprises often leverage on developed and integrated social communities. The education level of a people, work habits, culture, leisure activities and the role of women in the workforce will affect the viability of a business entity.

Singapore boasts one of the most competitive and well-educated workforces in the world, and it is renowned for its efficiency.

Its multi-cultural and cosmopolitan society makes it extremely easy for international and regional investors to set up headquarters in Singapore as a starting point to reach into the Asian market.

The Singapore government’s “Live, work and play” motto ensures that a variety of businesses can successfully operate in their chosen industries, with the right human resource boosting business growth.

Technological Environment

Singapore, described as a “plug and play” nation, is ranked number three as the most wired national in the world, and the most wired in Asia, with a broadband network that reached 99 per cent of the population.

Singapore’s electronics, pharmaceutical and biomedical industries are the leading boomers of both national and regional economy.

In the past few years, the country has been the leading innovator to set up several technological research institutes to build better and greener business infrastructure.

Technological advances have led to fast turnaround times for both retailers and consumers, hassle-free financial transactions, as well as the creation of new products at competitive prices.

The World Economic Forum ranked Singapore among the top 10 in the world for network readiness in 2002.

Legal Environment

Government statutes that oversee commerce, manpower, and other business-related areas are important to business owners.

Singapore has a compliance act that has to be strictly followed and entrepreneurs must abide by government laws on working hours, minimum wages, industrial production and taxation.

Business compliance includes the Employment Act, Taxation Act and the Central Provident Fund (CPF) Act.

The various taxes paid by businesses such as sole proprietorship, companies and GST have a direct impact on firms.

Ecological Environment

A long with technological advances, Singapore’s push to integrate green technology into its society has reaped many benefits.

Environmentally-friendly infrastructure such as Fusionopolis, ION, Orchard Central are some of the recent landmark achievements in the nation’s attempt to reduce its carbon footprint.

The government is has also laid out plans to build institutes dedicated to researching green technology and growing a pool of local talents to focus on improving business infrastructure while protecting the environment.

Mass Rapid Transit – Singapore’s public transport system, utilises electricity to run, and a plan has been launched to integrate the use of solar energy in SMBs and domestic households.

Key Marketing Indicators And Tracking Your Marketing Strategy

A great way to look at your key marketing indicators to understand whether your marketing strategy is working or not is to look at your sales revenue in relation to your key marketing indicators listed below. If your sales are up-it is working. If your sales are down-it is not.

However, this is not enough. Sales revenue alone gives you no feeling for your marketing dynamics and provides no way to focus on the key elements of your marketing operation. Try creating a marketing funnel by looking at the following starting at the top and working your way down the funnel:

1. The size of your market as a whole.
2. What part of the market you cover with your marketing activities.
3. How much of your market coverage can be converted into interested potential buying customers?
4. Measure how many of those potential buying customers actually convert into customers.

This funnel narrows at each step of the process. You can quantify each level of the funnel with key marketing indicators and track how well your strategy is really working or not working and how to correct it.

The key marketing indicators are

Market Size: Your Target Market Population.
Market Growth: Target Market Changes
Market Potential: Business Available from your Target Market with a
Maximum Dollar Value
Market Coverage: Effective Marketing Activities that Reach Your Target
Market
Lead Generation: Quantity of Motivated Potential Buying Customers and
% of Target Market
Lead Conversion: Quantity & % of Leads Converted to Sales
Market Share: Market Share of Business in Your Target Market
Average Sale: The Dollar Amount of Each Average Sale.

To be effective in your marketing strategy, you should measure this information monthly and be consistent in the measurement of this information. To do this more often, the information may be skewed in that there are too many daily variances to get a clear picture and understanding of the underlying dynamics of your market and business practices if you look at the information on a daily or weekly basis.

Monitoring the above information will tell you what is and what is not working in your marketing strategy. You will know if your market is growing or decreasing, in addition to how much business is out there for you and your competitors. You will know if your advertising and other integrated marketing communications are bringing in sufficient numbers of qualified leads for potential buying customers. You will also be able to determine if your market coverage needs to be increased or not and if your sales people are converting leads into customers effectively. You will understand the trends of your business and will be able to spot areas that need more attention than others.

Using this information will allow you to have a complete understanding of your competitive analysis that will give you a solid feel for ways to increase your share of the target market.

When compiling data for your market size, it should consist of the number of people in your target market who meet your demographic study discussed earlier. This information would be updated annually rather than monthly, as it is a demographic comprehensive study of your potential probable customer.

To gather the data for your market growth, consider the average frequency of purchase for your type of product or service. Unless you have great market research at the tips of your fingers, you will have to estimate this one based on your knowledge of your markets and common sense at the same time. In the exhibit industry, I would want to know how often my customer purchases an exhibit item and what they purchase to determine this demographic information.

The next step is gathering Market Potential based on the first three steps in looking at your marketing exposure. Does your marketing reach someone in your target market? If so, the potential buying customer is exposed to your marketing message. A great example is a direct mail piece that has been mailed to 5,000 people and you would have created 5,000 exposures if all the addresses were known and correct. If you do this twice a year, you would be creating 10,000 exposures. Additionally, if you run an advertisement in the local business paper or magazine that reaches 15,000 of your target market customer, then you have created a total of 20,000 total exposures by this time. If you continue to circulate 2,500 newspaper inserts per week for four weeks, then that would be another 10,000 exposures for a grand total of 30,000 exposures to your target market potential customers.

In generating leads, it can be done in many different ways for your company. A lead would be any person who has expressed interest in your business or its products and/or services by walking into your store or showroom, submitting an email, responding to your direct mail or viral marketing piece, making a telephone inquiry indicating interest in your product and/or service, or filling out a call to action form on your web site responding to a product and/or service inquiry. This person would be considered more than someone in your target market because they exhibited a motiivation to buy and an interest in your product. Leads are a process of someone having already begun to work their way through the Purchase Decision Buying Cycle and have made an expressed interest in working with your company.

When you convert these leads to sales, you have already most likely collected sales information by this time. For the purpose of tracking your marketing strategy, you will need the exact number of each sales transaction and the number of each lead generated to calculate your true lead conversion rate.

When compiling your sales dollar totals, you can find this on your business financial statements or in your sales reports in your accounting program. This information represents one type of marketing data most people can find fairly well.

Now that you have created your key marketing indicators, it is time to use metrics and evaluate this information to keep you informed of what your quantification efforts are and will give you accurate, objective and an ownership point of view of your business rather than the usual collection of random numbers with personal impressions most small business owners rely on. You will know what your business is doing and what to do about it. You will be able to constantly adapt to change by being in the know of your business strategies and using metrics for quantifying your data.

This is the last section of What is Marketing Strategy and Why is it Important? I hope you found each of the six components to your marketing strategy of value and will use this information to grow and strengthen your business by using metrics along the way.