External and Internal Environments

External and Internal Environments

Introduction

Tyco International Ltd. is a systems company and is a Swiss based organization. The corporate headquarters of this organization are in Princeton, New Jersey. In fact, there are two business units which are working under the umbrella of Tyco International Ltd., i.e., fire protection system and security solutions. As a matter of fact, the foundation stone of Tyco International was laid down in the year 1960 by Arthur, J. Rosenberg. At the outset, the major focus of the organization was over the manufacturing of semiconductors and other materials. But, in the year 1962, it shifted the business strategy and put more emphasis over the high tech technology products and several other energy preservation products and techniques. In fact, in the year 1964, Tyco International became public limited company and initiated to narrow the gulf within its network of distribution via taking over Mule Battery Products (Tyco Annual Report, 2012)

This paper will focus on the segments of general environment in which Tyco International Ltd. operate, among these segments, the major focus will remain over two which have direct influence over the business. In addition to that, there will also be discussion on forces of competition, and the prediction based on the overall competitive environment. At the same time, the external threat will be identified, in the light of strengths and weaknesses. Furthermore, there will be an analysis over the Tyco International's resources, capabilities, and core competencies and finally there will also be a value chain analysis.

General Environment

Business does not function in isolation, it environment plays a huge role in the overall functioning. As a matter of fact, the general environment of any business has direct impact over its success. The general environment of business comprises of different segments such as, social environment, economic environment, politico-legal environment, technological environment, and international environment. Each of these segments have due impact over the performance as well as standing of any business (LIJ, 2010). However, some of these levy direct influence, while others penetrations is somewhat limited. Whatsoever, each of these segments are critical for any of the organization. However, in light of these segments and the nature of Tyco International, there two paramount segments are technological and economic. As a matter of fact, each of these segments does impact the operations of Tyco International, yet the role of technological and economic is pivotal.

Technological Segment

Technological environment of business consists of the technical know-how and the use of technology for the purpose of production as well as management. As a matter of fact, technology plays a vital role in ascertaining the quality of goods and service produced the state of art plan or equipment. However, these days technological aspect has become an important factor because every business organization has to adopt the latest trends of technology in order to survive in the industry (Gnyawali & Park, 2011).

In the case of Tyco International, which is mainly involved in high tech products ranging from fire detection till integrated security and retail ...