Business environment analysis is an important process in business management that ensures the success of a business. In this regard, analysis of UMUC Haircuts will enable the business owner to identify various areas of improvement for successful performance of the organization (Roger, 2002).This report seeks to highlight how the Porter’s model can be used to analyze the business and identify processes that could be improved with the use of technology.
Analysis of the Five Forces
Analysis of UMUC Haircuts’ condition will entail the Porters Five forces. The factors touch every section of the organization and affect the sections in different ways. For instance, buyer power is the influence of the buyer on the performance of the business. UMUC experiences buyer power from the customers who prefer to be attended by particular employees. This condition has a negative effect in cases where the identified employees may be absent, hence forcing the customers to leave the business. Supplier power refers to the impact created by the supplier due the ability to supply quality products to various vendors in the market. Currently, the business does not experience supplier power since the products are readily available in the market. The condition therefore has neutral effect on business.
Threat of substitute products is a condition that exists when competitors offer products that can be used by the customers as the alternative. Myra experiences increasing competition from the rivals in the industry. One possible effect of competition is the emergence of substitute products. The situation may affect the business negatively since there will be rivalry for the existing customers in the market. Threat of new entrants refers to a situation where the industry experiences low cost of entry and therefore susceptible to entry of new businesses. Threat of new entrants may positively affect the business since it prepares the business for competition. The organization may improve the quality of the products to increase competition. Rivalry among existing competitors is a condition that is marked by intense competition between the businesses. The condition may affect a business negatively due to high competition for few existing customers (Roger, 2002).
Generic Strategy
For UMUC to ensure success in the 21st century, it is important for the organization to offer a wide product line to attract different categories of the consumers. This therefore requires the organization to adopt a broad market and low cost approach. The strategy will enable the organization to expand the services and enjoy low cost of operation. The strategy will be used to overcome rivalry among competitors, offer products that can counter substitute services, reduce buyer power by targeting many consumers, and reduce the threat of new entrants by operating under economies of scale.
Strategic Business Area
UMUC needs to improve the performance of employees to implement its generic strategy. UMUC operates in the service industry where quality of the services depends on the effectiveness of the employees. As presented in the case study many customers exert their buying power by forcing Myra to hire particular employees. In situations where the employees are absent the customers may not come to the business.
Process for Improvement
Myra experiences problems on how to handle the requirements of the customers and the employees. Therefore, customer and employee scheduling is the important process for improvement. The process requires information technology where Myra will schedule appointments using computers. The process entails receiving an inquiry from a customer through emails and identifying the employee who can meet the specified needs of the client.
Reference
Roger, N.R. (2002). Introduction to environmental analysis. New York, NY: Wiley &Sons.