External forces:W.L. Gore & Associates
W.L. Gore & Associates: External Forces
W.L. Gore & Associates operates in an environment where internal and external forces influence its operations directly and indirectly and creating both challenges and opportunities. Some of the external environment forces affecting W.L. Gore & Associates include:
Competition – Competition is inherent, and competitors aim to increase the market share, and these competitors employ different strategies to accomplish this requirement (Wang, Chen and Chen, 2012). W.L. Gore & Associates has to engage the customers and understand the requirements of the customers resulting in the creation of products that reflects the needs of the customers (W.L. Gore & Associates, 2016). Competition is both local and international in nature, and variables such as pricing, promotion, quality of the products, and applicability of the products affect W.L. Gore & Associates business.
Government policies – the government, determines the external environment through formulation and implementation of regulations, policies, legislative and other directives that govern business operation (Wang, Chen and Chen, 2012). For example, safety and health requirements, and labor regulations affect the business operation, and usually, the government develops such policies. Changes in policies affect the business operation, and W.L. Gore & Associates has to integrate these changes into the operations of the company (W.L. Gore & Associates, 2016).
Technological changes – advancement in technology requires the organization to adapt. W.L. Gore & Associates benefits and faces challenges due to technological advancement (Rothaermel, 2015). It is possible to generate products easily because of simulation and prototyping (Freeman, 2010). Technology advancement also means the quality of products keep changing meaning competition becomes fierce (Wang, Chen and Chen, 2012).
Economic factors – the economic situation influences acquiring W.L. Gore & Associates products. When the economy is growing, more consumers are acquiring the products but during the recession and financial crisis, W.L. Gore & Associates faces financial challenges. Therefore, a stable economy is important for W.L. Gore & Associates in ensuring continued production and supply of the products and services (W.L. Gore & Associates, 2016).
Customer demand – W.L. Gore & Associates aims to accomplish the varied requirements of the customers. However, the customers may decide to change the products and start acquiring the products from the components. Hence customer loyalty and satisfaction are important in ensuring W.L. Gore & Associates gains a competitive advantage (W.L. Gore & Associates, 2016).
Natural forces – it includes lack or availability of enough natural resources associated with the physical environment, which is used by W.L. Gore & Associates to manufacture the products (W.L. Gore & Associates, 2016). Other natural problems may include climatic changes and environmental situations limiting the logistical processes.
W.L. Gore & Associates Response to External Forces
W.L. Gore & Associates continues to expand its operation in different international markets indicating the company addresses the external forces effectively. W.L. Gore & Associates adheres to the governmental regulations to prevent complaints and legal problems. W.L. Gore & Associates ensures it champions health and safety requirements, while also adheres to the labor related regulations.
W.L. Gore & Associates understand that customers are important and continuously develop and provide products that fulfills the requirements of the customers (W.L. Gore & Associates, 2016). Innovation and creativity drive the business while high-quality standards ensure the needs of the customers are addressed. It also ensures consistency of the products and services (W.L. Gore & Associates, 2016). These processes make W.L. Gore & Associates to sustain competition and create a competitive advantage for the company.
Technology is an integral component in the production and development of the products and services (Teece, 2010). W.L. Gore & Associates entire processes are premised on the effectiveness of technology (W.L. Gore & Associates, 2016). The continuous innovation and creativity mean that W.L. Gore & Associates produces more high-quality products reflecting the needs of the customers. The technological development also means employee competence and learning organization are important (Rainey, 2010). These processes create a learning organization that integrates different processes to ensure high-quality products and services are created (Wang, Chen and Chen, 2012).
The following are some of the recommendations to address external forces:
Customer service and product strategy in which the customer requirements and expectations are targeted. For example, customer interaction and addressing conflicts and misunderstandings can create a positive brand image.
Continuous innovation and creativity – the needs and market demands keep changing, and the company is required to evolve through creating and developing new products, and improving current products and services.
Adhering and engaging with government institutions – issues such as permits and labor regulations should be considered to prevent conflict with the government institutions and entities.
Engagement with social and community requirements – processes such as corporate social responsibility should be advanced to support the community requirements.
Freeman, R.E., 2010. Strategic management: A stakeholder approach. Cambridge University Press.
Rainey, D.L., 2010. Sustainable business development: inventing the future through strategy, innovation, and leadership. Cambridge University Press.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill.
Teece, D.J., 2010. Business models, business strategy, and innovation. Long range planning, 43(2), pp.172-194.
W.L. Gore & Associates. (2016). Homepage. Retrieved from https://www.gore.com/
Wang, C.H., Chen, K.Y. and Chen, S.C., 2012. Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors. International Journal of Hospitality Management, 31(1), pp.119-129.