External and Internal Analysis

External and Internal Environmental Analysis

Shronda Gamble

STR/581

July 6, 2015

Lisa Diesel

External and Internal Environmental

A firm’s environment consists of internal and external factors. Having information regarding trends and patterns in a company’s environment is crucial to the success of a business. This paper will examine the most important internal and external factors within Quorum Federal Credit Union. I will also discuss the competitive position along with possibilities for QFCU.

External Environment Scan

External environmental factors are common, however unique to every firm. QFCU has to be sensitive to the environment it operates and functions in to live up to its mission and vision statements. A part of QFCU mission statement indicates that every member should be confident they are getting the benefit of the best financial products and services. QFCU vision is to make life (in banking) easier. However, before the organization can truly say that is meeting expectations, it must recognize the threats and opportunities.

Remote Environment

The remote environments are factor that occurs beyond QFCU’s control. Utilization patterns are influenced by the relative affluence of the different market segments. QFCU should consider economics in the sector that affect its industry. The primary economic factor that directly affects the business is the interest rates as this uncontrollable facet could potentially hurt the company. The fluctuation in interest rates has caused many credit union members to examine their finances and the financial institution. Many members seek liquid investments, such as certificate of deposits with higher paying dividends as several live off the monthly dividends (interest).

Another key is to concentrate on mortgages. Due to their large balances and low default rates, first mortgages lead in profitability followed by second mortgages. A low mortgage rate is the most important attribute for members when...