Company experiences in the external market

Executive summary:

Strategic analysis is a widely used technique that enables organisational leaders to conduct a thorough analysis of the external and internal business environment of an organisation. Strategic analysis assists market leaders to determine the possible market risks that are associated with a business operation thereby formulating effective strategies to overcome all these resistances to operate a smooth market operation. By using SWOT analysis this report will discuss and analyse the internal environmental condition of Poplars thereby determining the current challenges that this company faces in recent years regarding its internal environmental condition. On the other hand, PESTEL analysis will assist this report to analyse the challenges risks and opportunities that this company experiences in the external market.

Introduction:

Strategies analysis is considered as one of the most effective business tools in the modern business world which enables market leaders of any organisation to analyse the market environment (external and internal) in which the company operates its business (Bonaccorsi et al. 2020). This report will use the two most relevant strategic analysis tools such as SWOT and PESTEL analysis to determine the risk and issues that the company Poplars, the UK based famous garden centre faces in the external and internal business environment. Based on the findings from this analysis, this report will present suitable recommendations regarding how to overcome the identified risk and challenges by formulating effective strategies to enhance organisational efficiency and competitive advantage.

Strategic analysis:

A. Macro environmental analysis:

PESTEL analysis:

Evaluation of the findings from the strategic analysis:

From the above-mentioned analysis following risks or issues have been identified that Poplars is facing in the internal and external business environment in recent times.

The strategic risk of Poplars are as follows:

Poor online and automation system:

By analysing the internal market environment Poplars by using SWOT analysis it is seen that one of the major challenges that this garden centre currently faces is the lack of a convenient and well-structured automation process (Novikov, 2018). In the digital world, where the plantation industry grows faster with the implementation of the automation process Poplars still have a poor online customer dealing process and lack of automated tools in business operation and management processes, which can make this garden centre lose its customers, clients and suppliers due to slow and inconvenient service.

Lack of modern plantation and weather management tools:

Although Poplars is a famous garden centre in the UK with a wide variety of flowers, plants and highly lavish restaurants, it lacks ultra-modern weather management and plantation tools (Strang, 2018). As in the UK, weather is highly unpredictable, majority of the commercial plants show a high level of seasonality which makes it difficult for the plantation staff to meet the high demand for indoor and outdoor commercial plants throughout the years.

Competitive threats from rivals:

In the UK there are many financially strong garden centres such as Dobbies garden centre, Hiller Garden centre, Notcutts and Clifton Nursery. These garden centres currently focus on establishing their market footprint in the international business platform which will pose a high level of competitive threats to the marketers of Poplars (Tan and Carrillo, 2017). On the contrary to the poor online communication and customers dealing process of Poplars, these potential rivals emphasize conducting continuous improvement of their product and services to attract customers in the local market which pose an adverse impact on the customer base and market growth of Poplars.

Governmental legislation on plantation industry:

Poplars face issues regarding increasing operational and management costs while complying with the governmental regulation in the UK market. For example, while complying with the environmental pollution laws, recycling regulation, waste management regulation and legislation on the eco-friendly product and services, poplars.

Environmental issues:

As Poplars do not have modern weather management tools it currently faces the adverse impacts of weather changes and seasonality of plants (Tian et al. 2018). Due to unpredictable climate, heavy or low rainfall and lack of management of rainwater in the plantation process, Poplars is most of the time unable to meet the demand of a wide variety of flowers and commercial plants which interfere with the brand image and competitive advantage of this company.

Financial crisis during COVID 19:

Dring this COVID 19, there is unemployment recession and termination of employees which lead to severe economic slowdown and reduction of the financial condition of the UK people (Ewurum et al. 2019). In this context, Poplars faces severe financial challenges due to a considerable drop in sales, market growth and numbers of customers.

Recommendations for overcoming these crises:

Marketers of Poplars can use the following strategies in terms of overcoming all the above-mentioned strategic challenges:

Marketers of Poplars should improve the online communication channel through which they can maintain effective interaction with their clients, suppliers and distributors.

Managers of poplars must modify their website by including a variety of options regarding recreational facilities, garden care products, indoor and outdoor plants, gifts etc.

The staff and managers of Poplars would be provided with proper training in how to comply with all the legislation and regulation in the external and market environment to maintain smooth operation.

Marketers must conduct on online promotion of poplars by advertising this company's products and services in famous blogs, websites and social media (Facebook, YouTube and Google)

Marketers of poplars must install automated and highly modern plantation equipment and hardware that enable marketers to make good storage and management of all types of plants and flowers. IT staff of poplars must install the software and application program that can enable the employees to share all the valuable updates regarding the sales, marketing and operation in the garden centre and restaurant.

Conclusion:

From the above-mentioned discussion, it can be concluded that strategic analysis is a widely used technique that enables organisational leaders to conduct a thorough analysis of the external and internal business environment of an organisation. Strategic analysis assists marketers to determine the issues that a company currently faces in the external and internal business market thereby assisting the marketers to develop effective strategies to overcome all these identified challenges.

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