Str528

Introduction

There are many aspects to a business that affects its potential for success. In the simplest form, these aspects can be broken down into two categories: External and internal environments. It is vital that any organization understand the components of these factors and works to ensure their strategic management plan considers all possible effects. With today’s business world being so highly competitive it is better for firms to be proactive rather than reactive. Evaluating both internal and external factors should be an on-going process. Strategic planning involves determining what factors both internally and externally will have an effect on the firm’s operations. By analyzing these factors managers and executives of the firm will be able to easily identify its strengths, weaknesses, opportunities and threats to the business’ overall mission of “Sharing Love”.

External Environment

An organization’s external environments are factors beyond its control that affect its strategic plan and internal operations. This environment consists of three sub categories: Remote environment, industry environment, and operating environment. Within the remote environment factors such as economical, social, and political factors of influence exist.

Economic Factors

One of the most important economical factors the influences Zale’s Jewelers bottom line is the state of the economy. Many of the customers who shop at Zale’s Jeweler’s rely on available credit to make their purchases today and pay for them over an extended period of time. With this in mind and a decline in major banks offering credit to new consumers, Zale’s executives have decided to offer a “Second Look’ financial program. This program will offer potential consumers who are not approved for a standard Citi Bank account to be automatically considered for an in-store preferred customer account. To keep consumers able to make these special purchases managers must consider the overall availability of...