Implementation Plan, Strategic Control, and Contingency Plan Signature Assignment: Strategic Plan – Implementation Plan, Strategic Write a 1,050-word minim
Implementation Plan, Strategic Control, and Contingency Plan Signature Assignment: Strategic Plan – Implementation Plan, Strategic
Write a 1,050-word minimum strategic implementation plan in which you include the following:
Create an implementation plan including:
Objectives
Functional tactics
Action items
Milestones and deadlines
Tasks and task ownership
Resource allocation
Recommend any organizational change management strategies that may enhance successful implementation.
Develop key success factors, budget, and forecasted financials, including a break-even chart.
Create a risk management plan including contingency plans for the identified risks.
Format your paper according to APA guidelines. Running Head: ENVIRONMENTAL SCAN: NATURAL HEALTH TRENDS CO
Environmental Scan: Natural Health Trends Co
Institution
Name
Date
1
ENVIRONMENTAL SCAN: NATURAL HEALTH TRENDS CO
2
Introduction
Environmental scanning refers to the process used by organizations to monitor their
business environment to identify both opportunities and any threats that affect their business with
the aim of making strategic decisions. An environmental scan takes into consideration several
factors. Among these are the external environment, the general environment and the industry
environment the organization is operating in. An environmental scan of Natural Health Trends Co
which was incorporated in the year 2005 as e-commerce and direct selling company will be done
here. With the company dealing in health, quality of life and personal care products, a scan of its
environment is important as evidence shows this process plays a vital role in organizations dealing
with public health (Koo, OCarroll, Harris, & Desalvo, 2016). This paper, therefore, seeks to
determine how Natural Health Trends Co can create value and sustain competitive advantage using
the strategy that will be developed in the environmental scanning process.
How to Create Value and Sustain Competitive Advantage Using the Environmental
Scanning Strategy
Natural Health Trends Co. operates within the public health care industry. The organization
faces competition from both public and private organizations operating in the industry. Its
competitors include 8fit, Herbalife Ltd, Nu Skin Enterprises, Omega protein, and USANA Health
Sciences among others. To create value for its wellness, beauty and personal care products, the
company must use information about market trends extensively (“Natural Health Trends Corp
(NHTC.A) Company Profile”, 2019).
Market trends will help the company to understand the demographic trends and the health
preferences different people have. The company can use this information to tailor their products
ENVIRONMENTAL SCAN: NATURAL HEALTH TRENDS CO
3
to meet the needs of the different customers in the market. The environmental scan strategy
adopted should allow frequent scans most preferably quarterly to enable the company to
understand multiple external factors thus helping the organization to keep pace with the external
environment. This will ensure that the company will adapt its competitive strategy according to
the market needs. As a result, the company will benefit by taking advantage of any opportunities
before its competitors, dealing with threats in advance before they grow into enormous challenges
and aligning its strategy to address the marketplace changing demands (Wilburn, Vanderpool, &
Knight, 2016).
Natural Health Trends Co External Environment
The external environment of an organization refers to all factors from outside that influence
the operations of the organization. It is divided into the micro and macro environment. The micro
environment in the case of Natural Health Trends Co comprises the suppliers, financiers, market
intermediaries, customers, and public opinion. As part of the scanning strategy, the company has
to ensure that they have reliable suppliers to provide the required materials in manufacturing the
products. Suppliers must be paid in prompt to keep them motivated. As an incorporated company,
shareholders comprise the shareholders (Clarke, 2018).
The company must ensure that they maximize the shareholders wealth through proper
marketing strategies that will attract more customers to the company products. Market
intermediaries play a crucial role in the marketing and distribution of products. Natural Health
Trends Co in its global market strategy has been relying on engagement with local service
providers to distribute and sell and its products in China, Europe, Malaysia, Taiwan, Hong Kong
Singapore, Japan, Kazakhstan, and South Korea. It is important for the company to include a
strategy that will help in engaging these service providers to communicate marketplace changes in
ENVIRONMENTAL SCAN: NATURAL HEALTH TRENDS CO
4
their segments. The company has an excellent mix of products that targets all customers in terms
of age and needs. Studying trends about these customers is key to keeping them. Public perceptions
have become an essential aspect of the business day. Natural Health Trends Co has to use materials
that do not pose any danger to the customers and the environment (Clarke, 2018).
The macro element comprises of six important factors which include political, Economic,
Social, Technological, Legal and Environment (PESTLE) factors. An analysis of the political
factors is important to ensure that the company operates within the limits of the governments of
the day in the different markets. Also, it is important to study the economic status of the customers.
The product quantities can be tailored to meet different customer purchasing power. In the social
aspect, the company has been undertaking training and campaigns to educate the public on the
importance of healthy living. This is a strategic move as it allows them to interact with potential
customers. Embracing technology is an important aspect of any organization today. The ecommerce platform the company has adopted will help them in marketing its products and
reaching overseas customers more efficiently. Lastly, every organization must operate within the
industry and country regulations and laws. Natural Health Trends Co since its incorporation has
had no issues of breaking the law and has been disclosing its financial information as required
(Clarke, 2018).
Natural Health Trends Co General Environment
The general environment will comprise of entirely the external environment of the
organization and any other factors that affect the operations of the company. One of the factors
that need scanning, monitoring and appropriate assessments is the demographic segment. As a
company that deals in products connected to public health, Natural Health Trends Co has realized
the growing focus on wellness and health both in the political and societal sphere. The company
ENVIRONMENTAL SCAN: NATURAL HEALTH TRENDS CO
5
has therefore moved to meet the needs of these populations and has invested heavily in a variety
of wellness and health products for all ages (Clarke, 2018).
For the company to continue enjoying success, it must monitor and assess consistently the
demographic changes that are happening in its market. For example, in the United States, the
population of seniors is increasing. Another factor that is important to be assessed is the physical
environment concerns about organizations either producing products that threaten human life or
the environment. Since this company uses natural ingredients to manufacture its products, it must
ensure that it adheres to environmental regulations in all the countries it trades.
Evaluate the Organization’s Industry Operating Environment
With the presence of both private and public organizations in the public wellness and health
industry, there is no doubt that Natural Health Trends Co faces competition. Companies such as
8fit, Herbalife Ltd, Nu Skin Enterprises, Omega protein, and USANA Health Sciences are
producing substitutes to what the company produces. Through product innovation, the company
has been able to compete favorably. Also, the company has to continue assessing the changing
preferences among its customers both domestically and overseas. This continuous monitoring and
assessment of the market are important because it helps the company to identify trends that will
create new opportunities as it has happened before (“Evaluating the External Environment”, 2015).
Conclusion
In conclusion, environmental scanning is a vital strategic management tool that ensures
that a firm is able to compete favorably. Scanning allows an organization to analyze events and
trends happening in society and the world at large and identify opportunities. As a process,
environmental scanning looks at all factors in the business environment with the aim of
ENVIRONMENTAL SCAN: NATURAL HEALTH TRENDS CO
6
determining whether the business activities and products are aligned to the environmental needs.
It is through the environmental scanning process that companies are able to develop sustainable
and competitive strategies (Koo, OCarroll, Harris, & Desalvo, 2016).
ENVIRONMENTAL SCAN: NATURAL HEALTH TRENDS CO
7
References
Clarke, A. (2018, November 16). Environmental Scanning in Marketing – What is it? See
Examples. Retrieved May 11, 2019, from https://groundfloorpartners.com/environmentalscanning/
Evaluating
the
External
Environment.
(2015).
Retrieved
May
11,
2019,
from
https://saylordotorg.github.io/text_mastering-strategic-management/s07-evaluating-theexternal-enviro.html
Koo, D., OCarroll, P. W., Harris, A., & Desalvo, K. B. (2016). An Environmental Scan of Recent
Initiatives Incorporating Social Determinants in Public Health. Preventing Chronic
Disease,13. doi:10.5888/pcd13.160248
Natural Health Trends Corp (NHTC.A) Company Profile. (2019). Retrieved May 11, 2019, from
https://www.reuters.com/finance/stocks/companyProfile/NHTC.A
Wilburn, A., Vanderpool, R. C., & Knight, J. R. (2016). Environmental Scanning as a Public
Health Tool: Kentuckys Human Papillomavirus Vaccination Project. Preventing Chronic
Disease,13. doi:10.5888/pcd13.160165
Running Head: INTERNAL ENVIRONMENTAL ANALYSIS
Internal Environmental Analysis: Natural Health Trends Co
Institution
Name
Date
1
INTERNAL ENVIRONMENTAL ANALYSIS
2
Introduction
According to Kalayci, Duru, Erkan & An?l (2018), for business to exist, develop and
sustain themselves in the long-term, analysis of the internal environment is not only important but
also a necessity. It shows the threats that exist and also demonstrates the strengths and weaknesses
the business may be facing. It also identifies potential business strengths. It is through analysis of
the internal environment, an organization that strategic management of internal functions is
possible. The analysis may include self-evaluation, self-awareness, and the ability to develop
capacity estimations of the organization. Proper strategic management of the internal environment
helps organizations to adapt to factors that present themselves from the external environment, thus
helping them to maintain their competitive power. In this paper, an internal environment analysis
of Natural Health Trends Co, which will identify the strengths and weaknesses of the organization
as it seeks to remain competitive in its industry.
Assessment of Natural Health Trends Co Internal Environment
The internal environment of Natural Health Trends Co comprises of its management and
its subsidiaries. Under management, the organization has been effective through its offices and
management teams across the globe. These management teams help the organization to develop
strategies that help the organization to achieve continuous growth. Subsidiaries, as part of the
internal environment, have extensively helped Natural Health Trends Co in their global expansion
strategy. The organization has been in direct contact with all its subsidiaries and distributors to
ensure that all its customers all are provided with products they need (Sherman, 2019).
INTERNAL ENVIRONMENTAL ANALYSIS
3
The Most Important Strengths and Weaknesses of Natural Health Trends Co
Being a prominent company in the personal wellness products, Natural Health Trends Co
has a number of strengths that help them to flourish in the industry. Some of these strengths are
discussed here. First, the company has developed a strong community of dealers over the years.
This has created a culture in which dealers and distributors not only participate in promoting the
products of the company but also provide training to their sales team on how to advise customers
towards obtaining the highest benefits from the companys products. Secondly, the company has
an excellent customer relationship whose dedication has contributed to high customer satisfaction.
The department in charge of customer relationship has hence achieved not only higher customer
satisfaction but also better brand equity among prospective customers (Sherman, 2019).
Thirdly, the company has been successful in building new and effective streams of
generating revenues. This has enabled the Natural Health Trends Co to record better returns from
its capital expenditure. Also, product innovation has been an important strength for the company.
Natural Health Trends Co has continuously been rolling out new products that are intertwined with
customer needs. In addition, the company has reliable suppliers. The strong and reliable supplier
base helps the company to acquire raw materials easily without any bottlenecks. The companys
brand portfolio is also a strength. It is because of having a brand portfolio that is strong that Natural
Health Trends Co has found it easy to expand to new and different product categories. Lastly,
Natural Health Trends Co has been enjoying robust free cash flows. As a strength, this allows the
company to acquire resources towards expansion. These strengths help the company in protecting
its share of the market as well as flourish in the new markets (“Natural Health Trends Corp
(NHTC.A) Key Developments”, 2019).
INTERNAL ENVIRONMENTAL ANALYSIS
4
One of the companys weaknesses has been its lack of a clear definition of a unique
proposition in selling and position. This creates a loophole that competitors can use to attack the
company in this segment. Secondly, the company’s product range has some gaps, which creates a
lack of an option to customers. This gap can also allow a competitor to gain a grip in the market.
Thirdly, the companys inventory in a day has been recorded to be higher as compared to
competitors (Sherman, 2019).
The disadvantage of this is that Natural Health Trends Co has to spend more in inventory
management, which can affect the growth of the company in the long-term. Also, the company has
invested poorly in new technology. The current investment in technology does not match the
company’s expansion strategy into different geographical regions. Lastly, the financial planning at
Natural Health Trends Co is not efficiently and appropriately done. The companys liquidity asset
and current asset ratios indicate that the company is not utilizing its cash efficiently (“Natural
Health Trends Corp (NHTC.A) Key Developments”, 2019).
The Most Important Internal Environmental Factors in the General, Industry, and
External Analysis in Relation to the Internal Analysis
The companys proven quality product offering, and brand association is an identifiable
internal factor that has helped the organization to thrive in different markets. The company has
succeeded in convincing its customer base on the provision of high-quality products with
immediate results. Also, Natural Health Trends Co has employees with proven capabilities who
have driven the companys product innovation and success since its formation (Olsen, 2019).
In the general environment, Natural Health Trends Co has a challenge of matching up with
technology. As the company seeks to expand globally, its investment in technology is not yet
INTERNAL ENVIRONMENTAL ANALYSIS
5
enough. Also, demographic needs are opening new opportunities for the company. Many people
in the world are increasingly beginning to understand the importance of using personal wellness
products. The industry is also increasingly becoming competitive as more companies are daily
innovating to come up with new products. The industry also faces a lot of attention from
government agencies on public health as the products sold must be legally accepted and meet the
required standards. The companys external environment also suggests that there is a lot of unmet
needs. The company needs to use this opportunity to increase its market share (Olsen, 2019).
Competitor Analysis
Natural Health Trends Co has been operating in a very competitive industry. Other
companies such as 8fit, Nu Skin Enterprises, Herbalife Ltd, USANA Health Sciences, and Omega
protein have staged a lot of competition in the industry. Although Natural Health Trends Co prides
itself as a recognized brand, these companies have gained a considerable market share in the
industry. The companies can use the product gaps that the company has left unfilled as a platform
for competition. Also, some of these companies have been providing superior substitutes, thus
magnifying the competition in the market (“Natural Health Trends Corp. PESTEL Analysis &
Environment Analysis”, 2018).
Assessment of the Structure of the Organization and the Influence it has on Performance
Natural Health Trends Co has adopted a divisional geographical structure in its operations.
Under this structure, the company has allowed its subsidies to be operated individually to meet the
markets needs each is designed but report to the parent company. This structure has influenced the
performance of the company by offering more flexibility to meet the specific market needs.
INTERNAL ENVIRONMENTAL ANALYSIS
6
Decisions are faster to make since each geographical division makes its own decisions and reports
to the companys chief executive officer.
The Organization’s Competitive Position and the Possibilities it provides
The companys global growth, coupled with its e-commerce business model, is proving to
be its competitive advantage over other firms in the industry. This business opportunity provides
the ability of its direct selling agents and dealers to market and sell the companys products at the
comfort of their homes. Through e-commerce, the company has been able to identify user needs
through interaction with customers from different segments (Olsen, 2019).
Moreover, the company uses blogs and websites for sharing customer opinions. Collection
of customer opinions is used in making organizational decisions about launching new products
and services. Moreover, the company has obtained competitive advantage through inventing over
35% of its funds in the inventions. Its products are uniquely made compared to the competitors.
Lastly, Natural Health Trends Co motivates its workers through good and timely wages. Motivated
employees work hand in hand to see their companies succeeding.
Conclusion
In conclusion, an internal environment is an important aspect that allows an organization
to identify opportunities and threats in which it can base its strengths to overcome the weaknesses
that exist. The internal analysis of Natural Health Trends Co suggests that although the company
has competitively achieved its goals, more effort in consolidating the market is necessary. The
company has to use its innovation capabilities and the e-commerce business approach to gain a
competitive advantage over its competitors as it concentrates in its global growth. The analysis
INTERNAL ENVIRONMENTAL ANALYSIS
7
provides the strategic direction the organization should take to achieve its long-term success
(Kalayci, Duru, Erkan & An?l, 2018).
INTERNAL ENVIRONMENTAL ANALYSIS
8
References
Kalayci, E., Duru, S., Erkan A. C., & An?l T. S. (2018). Internal Environment Analysis in Health
Institutions.
Natural Health Trends Corp (NHTC.A) Key Developments. (2019). Retrieved May 19, 2019, from
https://www.reuters.com/finance/stocks/NHTC.A/key-developments
Natural Health Trends Corp. PESTEL Analysis & Environment Analysis. (2018). Retrieved May
19, 2019, from http://fernfortuniversity.com/term-papers/pestel/nyse4/764-natural-healthtrends-corp-.php
Olsen, E. (2019). Internal & External Analysis. Retrieved May 19, 2019, from
Sherman, F. (2019, March 08). What Are Internal & External Environmental Factors That Affect
Business? Retrieved May 19, 2019, from https://smallb…
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