Internal environment analysis in an organization
Introduction
Every organization has a strategy concerning its business, and therefore, for the strategy to become successful, it is supposed to be built on a realistic analysis of the internal capabilities and resources of the organization. An internal analysis helps in the process of providing the means of identifying the strengths necessary to build on and the possible weakness that should be overcome in the organization during the formulation of strategies (Adom et al. 2016). Internal analysis is helping in the process of considering the resources of the organization. It identifies the type of business the organization is involved in, policies, objectives, and plans of the organization based on how they are achieved. The aim of this assignment is to conduct an internal environment scan of Bright Horizons Family Solution Inc.
Organization’s internal environment
Bright Horizons Family Solution Inc is one of the leading organizations that is dealing with child care services and education. The organization has got various strengths that have made it to be successful l in the market. The strengths of the organization have facilitated it to protect its market share and penetrate some of the new markets. The organization has been able to track records of integrating complementary organizations by acquisition and mergers successfully (Ibrahim & Harrison, 2019). Integrating several technological organizations has helped Bright Horizons Family Solutions to streamline its operation and establish a reliable chain supply. The organization has also built a strong network distribution that has helped it to reach the majority of its customers in the market. Bright Horizon Family Solution Inc has built a strong Brand Portfolio which has been playing the role of helping the company to expand its new products in the market. The organization has also created a strong dealer community that helps in promoting the products and trains sales teams in order to make maximum profit.
The organization has realized some of its weaknesses as it trades in the market. One of the internal environmental weaknesses of the company is the high rate of attrition. Attrition is the process of losing employees through natural means such as retirement, elimination of a position, and resignation. Therefore, the organization spends a lot of funds on training newly hired employees as compared to some of its competitors in the market. The organization is also experiencing a gap in the product range. This has given some of its competitors to penetrate the market (Stoyanova & Angelova, 2018). Failure to have proper financial planning within the organization has caused the business to face some of the regrettable challenges in the industry. The organization has also realized that it is limited to succeed outside the main market. As much as the company has proved to be the leading organization, it has been experiencing difficulties in moving its services to other areas.
Most important strength and weaknesses
The most important strength of Bright Horizon Family Solutions Inc is the creation of a strong brand Portfolio. Bright Horizons Family Solution Inc has invested a lot in order to build a strong brand portfolio to help them to penetrate the market extremely. This strength has helped the company to take advantage of its competitors in the market. The most crucial weakness for the organization is the financial planning. Bright Horizons Family Inc is facing the challenge of a poor financial plan, but the current asset ratio and liquid asset ratio is suggesting that the organization is capable of using its cash efficiently. In terms of human resources, Bright Horizons Family Solutions Inc has been able to employ skilled and trained teachers up to about 18, 400 who are providing quality education services and child care within the organization (Ibrahim & Harrison, 2019). The company has got capital resources such as reading materials for the children, education centers in 43 states, and it has also been able to lease 56,000 square feet for office establishment in Watertown, where they have built their headquarter office. The company’s financial resources majorly come from fees paid by their clients and the donors who are willing to support the company.
Important internal environmental factors general, industry, and external environments
One of the essential internal environmental factors found in the general environment of the Bright Horizons Family Solutions Inc is culture. The company has been considering the culture of different states and nations before they establish their business. In a cultural environment where the market cannot have enough support from the community is risky, and therefore, the organization has been observant about the culture of a given place. The essential internal environmental factor concerning the industry is technology (Stoyanova & Angelova, 2018). Technology has been playing an essential role in ensuring that there are quality services provided in terms of education and child care services in Bright Horizon Family Solutions Inc than its competitors. The most important external environmental of the company is the competition. There are new competitors who are coming into the market with innovation, and this gives the company a challenge of maintaining its standards
Competitor analysis
Bright Horizons Family Solutions Inc is one of the leading organizations that provide child care and early education, education advisory services for workers and families. As much as it is the leading organization in this industry, it faces stiff competition because there are many new entrants into the market, which are imposing intimidations to the organization (Ibrahim & Harrison, 2019). Because of the new firms in the market, there are a lot of barriers in the industry, making the profit to reduce, but the company has maintained its high service provision in the market, scaring most of its competitors. In the last four quarters of 2019, the total revenue of the organization increased by 8.86%. This shows that the organization has more competitive advantages in the market as compared to most of its competitors in the industry.
Structure of the organization and the influence on its performance
The organizational structure of Bright Horizons Family Solutions Inc is that the organization is divided into centers with not more than 550 children (Adom et al. 2016). This makes the management of the children to be efficient. It also has strong management headed by a chief executive officer who ensures that requirements for the development of the organization are implemented to have a competitive advantage in the market. It has also employed full-time teachers and part-time experienced teachers to ensure that there are quality services in the organization.
Organization’s competitive position and the possibilities this provides
Bright Horizon Family Solution Inc has a tremendous competitive advantage as compared to other firms in the industry. This is because it has worked toiled to achieve its strengths, and it has also identified most of its weaknesses and settles most of them (Stoyanova & Angelova, 2018). The organization has also implemented the identified opportunities to take advantage of its competitors in the market. Because of the high competitive advantage in the market, it has provided the possibility of leading in the market as compared to the competitors.
Conclusion
Internal environment analysis plays a vital role in an organization; it helps the organizations to remain within their strategic plan. It supports most of the businesses to be successful since they are able to identify their strength and work on it in order to have a competitive advantage within the market. It also helps in identifying the weakness of the company and finds the possible means of eradicating the weakness that is likely to affect the business.
References
Adom, A., Nyarko, I., & Som, G. N. (2016). Competitor analysis in strategic management: Is it a worthwhile managerial practice in contemporary times. Journal of Resources Development and Management, 24.
Ibrahim, E. B., & Harrison, T. (2019). The impact of internal, external, and competitor factors on marketing strategy performance. Journal of Strategic Marketing, 1-20.
Stoyanova, T., & Angelova, M. (2018, June). Impact of the Internal Factors on the Competitiveness of Business Organizations. In 2018 International Conference on High Technology for Sustainable Development (HiTech) (pp. 1-3). IEEE.