External and Internal Environmental Analysis-Autozone, Inc.

External and Internal Environmental Analysis-AutoZone, Inc.

Danita Benson

STR/581

April 22, 2014

Jason Hernandez

External and Internal Environmental Analysis – AutoZone, Inc.

Environmental scanning is a process that helps mangers or leaders of an organization to understand the external and internal environment of many parts of the company and break it in a language that is understood by the project management groups and leaders. One of the most vital essentials of AutoZone’s plan is their level of excellence in consumer service. For an organization like AutoZone, Inc., a worldwide company, the awareness of external environmental factors is vital to maintain competitive on the auto parts industry.

Remote Environment

According to Pearce II and Robinson, the remote environment often influence or control environmental, biased, public, and industrial parts or services that influence a type of choice of decision making of self-determination (Pearce II & Robinson, 2012). The organization has no control or regulation over these factors. The remotes environmental factors influence the way AutoZone, Inc. offers automotive parts services, especially the economic factors. The economic factor describes the organization awareness of the basic accessibility of recognition, the point of unusable revenue, for customer to buy (Pearce II & Robinson, 2012). Auto Zone target market is the do-it-yourself customer. The economic factor will not affect AutoZone target customers and the ability to pay for auto parts.

Industry Environment

Industry environment that business experience includes circumstances for competition such as demographics, lifestyle shifts and economic cycles. There are five forces that Michael E. Porter, a Harvard University professor, uses to describe the industry competition (Pearce II & Robinson, 2012). These forces are entry barriers, contractor power, consumer power, alternate...