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Business Activities: External and Internal Factors

SWOT and Pestle Analysis

SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) deals with the external and internal factors affecting the business activities. The strengths of Ben & Jerry’s business included the experience they have in the operation of the business that helped them to specialize in the business. The business also had invested in some other countries like Brazil which helped them in running their business s they had enough security and finance in operating the business.

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The economy of the country is better and this resulted in demand and supply of the goods and services increased in the market. The business was created as a partnership that helped the business to grow as they contributed the capital and better decision-making was made (Capon, 2009). Weaknesses of Ben and Jerry’s business were the impossibility of managing their asset, and of which they should learn to practice so that they can be able to plan for the future and present conditions of the business.

The opportunity of the business includes the capital resources which the business has in running the business without having many problems as there is enough capital to stock the business and operate the business effectively.

Threats of the business are the custom officials who would charge very high storage fees and taking their time in releasing shipments to the importing companies. The business which faced shifts in the tastes of customers’ tastes and preferences made customers shift away from the business products and also the other threat was the emergency of new products in the market made them close down as they did not try to face their threats (Hill, 2005). They also faced stiff competition from McDonald’s’ business who revised its menu to serve burgers, chicken entrees, and Russian flavors and ingredients.

Doing business effectively

PESTLE analysis stands for Political, Economic, Social, Technology, Legal, and Environmental factors affecting the business activities in the market. The Political issues are the factors affecting the business were the government repatriation of income and currency transactions that passed through various banks; commercial foreign exchange banks and domestic agricultural banks; taxations and grants in the country have affected the business. Social factors of the managers openly discussed and analyzed market economics and democracy helped the business to develop its products in the market.

The managers of the USAID networked and worked together with other American entrepreneurs so as solve problems in their companies. They also managed to develop their systems and trained their staff to produce the best qualities in the market (Hill, 2005). The technology of the business will help the business in producing better qualities of goods and services to the customers by use of the antiquated technologies and were sold by limited vendors in the market.

The legal factors are the legislation requirements needed by the government in the business to operate in the country like the shipment licenses from government clerks who charged a fee for the privileges. Local and regional government agencies had the powers and authorities to control access to facilities like telephone lines, cargo-invoicing systems, licenses, and permits (Capon, 2009). The environmental factor of the business was considered as well situated to consumers’ access and mobility was to have an adequate highway for transportation services and a good freezer truck to make transportation easy and faster. They also considered the current and future environmental legislative changes considered in the market.

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Capon, C. (2009). Understanding the Business Environment. New York, NY: Financial Times Prentice Hall.

Hill, L. W. C. (2005). International Business Competing in the Global Marketplace. New York, NY: McGraw-Hill.

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