Employing Strategy in a Competitive Environment

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Employing Strategy in a Competitive Environment

Introduction

Environmental scanning is principally a business tool to extract information from internal and external sources about current inclinations and futuristic trends. The company in this scenario is 721 Financial, Inc. Principally the company deals with bookkeeping, accounting, and auditing and taxation matters. However, with the decreasing global economic condition, every business is having a problem in sustaining its market share, especially newly emerging businesses. Even in the international marketing, the supremacy of gigantic players is non-diminishable and requires extra precautions business strategies to successfully survive on the global platform.

Environmental Threats to the Company

721 Financial Inc. is principally an accounting firm operating in the United States of America. Environmental threat is business jargon, which explains the impact of any outside factor that may harm the demand of the company or its products or services. The environmental threat could be the emergence of a new competitor, the merger of various competitors, new technological development, legislative change or any other social or economic trend that may impact of company's performance (McFadden, J., 1998).

The current environmental scan elucidates that there are drastically increasing economic crisis has severely spoiled the business environment of global market. However, the significantly decreasing dollar price has put down American economy under threats. Financial Crisis is amongst the biggest environmental threat, which this company would face. The advent of technology and e-commerce has also restricted the job of bookkeepers in the business market. Businesses as well as customers, most of them are making transactions through plastic money, i.e. credit or debit cards. The existing financial giants operating in the industry are also environmental threat for the company. It got researched that there are around 27,000 accounting and taxation firms registered in United States (Linda, M. N., 2006).

Despite of these threats, there are also various strategies that can be implemented to secure the impact of such threats on the business. The economic crisis is a global dilemma; however, to get prevented from the crisis of dollar it is essential that company expand its ventures in various regions of the world, where economic situations must be relatively stable and smooth. The technological advancement can be betrayed by the adoption of technology into business (McFadden, J., 1998). Through incorporating e-commerce bookkeeping, the company can not only gain technological advantage, but also gain competitive advantage over various other competitors. The existence of 27,000 other accounting and taxation firms cannot be reduced; however, company can minimalize its impact through business and technological developments, and getting competitive advantage.

Strengths of the Company

The biggest strength of the company would be its employees, who will be highly qualified and possess a high level of competence in accounting, audit and taxation. The company would try to maintain very less expensive operation plan. Therefore, there would be least investment and high return over investment. The business does not require such extravagant office or technological production plant; therefore, it can be arranged in the least expensive ...