External Environment Opportunities And Threats

External Environment: Opportunities And Threats

1.0 Societal Environment

These are compelling forces that are general in nature and don’t touch on the short run of the business activities but rather will have an influence on the long-run. In the David-Hartley Inc, the factors that can be categorized in this group are: Economic, Technological, and socio-cultural.

Economic

These are surrounding circumstances a rising due to inflation affecting the business. In the year 2008 there was a recession the struck the USA. According to the CEO Jim Ziemer, the company was going to face turmoil in its sales after successful sales since 1986 to 2007. However, the company is regarded as the recession-resistant company. This is true because the company have spread all over the globe. This guards it against this monetary wave (T).

Technological

The company did not for almost 100 years adopt technological changes, but this was realized when an air cooled motor cycle was developed. This gave the company a lee way to adopt technology in all its production line. With utilization of technology, the company was able to feel some positive impact in sales and hence proceeds (O).

Political-legal

Compliance to environmental safety is paramount in any corporation. The company comply with permissible amount of emission and thus is subject to Environmental Protection Agency (EPA), and California Air Resource Board (CARB).

In the same note, it is also subject to National Highway Traffic Safety Application (NHTSA) for production of machines that comply with federal safety and are worthy to be on the road (O).

Socio-cultural

The David-Hartley customers have varied lifestyle. People from all works of life are part and parcel of this corporation cutting across gender mainstreams. People like this as a way of relaxation and provide an opportunity (O). The majority of the racing population are adults. This is posing a threat as this will soon retire leaving nobody behind (T).

2.0 Task Environment

There is though competition in the ability to offer wholesale and retail financial services. Competitors compete for price and services whereas the company offer convenience, service, brand association, terms, price, industry experience, and dealer relationship. This is a threat.

On the same note, the introduction of the Buell into the market provided threats in seizing the market already captured (T).

The seasons that vary affect the sales. In many instances people do like motorcycles during the warm season and this is the period which sales go up. This poses a threat. Likewise, people buy motorcycle when ready and competent to ride (T).

Marketing distribution is enjoyed greatly by the company owing to the spread that is rooted since the company began. This is an advantage to the company (O).

E-commerce is an area in which the company have reaped the benefits from. The introduction of the David-Hartley.com website has enabled to advertise their products on the internet (O).

Through research and development, the company has been able to make continuous improvements in their products. The introduction of the air cooled motorcycle is a product. This gave the company a boost and to continue investing in research and development (O)