Reference no: EM132261522

The readings below is an analysis of the internal environment of Acklands-Grainger, Canada.

Write an analysis of various aspects of its "external environment" that includes the following question:

1. Analyze the industry/market on the following parameters:

a. Economic characteristics -

b. Key success factors -

c. Trends and opportunities -

d. 5 forces analysis (Porter) -

Internal Environment Analysis:

SWOT Analysis for Acklands -Grainger

The comprehensive breakdown of the organic and inorganic growth activity in an organization has to sustain its competitive advantage. Acklands-Grainger, Inc. Mergers & Acquisitions, Partnerships & Alliances and Investments report includes a business description, detailed reports on mergers and acquisitions, divestments, capital raisings, venture capital investments, ownership and partnership transactions. Acklands-Grainger, Inc. capital raising and private equity transactions can be found in the strategic partnerships and alliances (Acklands-Grainger, 2018).

The strengths of the business include its wide product range and partnership with manufacturing suppliers. It maintains quality and service standards with round the clock support to customers. It has well-managed inventory, warehousing, and supply chain system. A successful training and learning programs produce a highly skilled workforce, Acklands-Grainger workforce that is not only highly skilled but also motivated is their resources which are invested in training and development of its employees resulting into achieving more leadership in the process (Williamson, 1975). For successful track record of integrating complimentary firms through mergers & acquisition, it has to successfully integrate a number of technology companies in the past few years to streamline its operations and to build a reliable supply chain.

In weaknesses, the company is mainly focused on Canadian businesses and its market, thus it has a broad focus in the local market through wide product range and services considering it have narrow and different choices compared to the US. The company lacks flexibility considering its big size and structure to offer customized solutions. The Research and Development R&D department is weaker than competing industry in the market. With the expenditures for R&D is above average, compared to other industries, the company did not surpass other industries in terms of innovation. Tested features in the market have brought out products and came across into a mature firm. Another weakness is their financial planning, in that sector, it is not done properly and efficiently. It suggests that the company can use the cash more efficiently than what it is doing at present in terms of the current asset ratio and liquid asset ratios (Grainger, 2018).

In opportunities, the company can seek to expand its business to the Middle East and neighboring countries while establishing global partnerships on that side of the world. With that, it can become the supplier for leading global manufacturers. Considering its market records, experience, and technical expertise, Acklands Grainger can also become a partner in other government projects for stability and sustainability providing Acklands-Grainger an opportunity to enter a new emerging market (Wrigley, 1970). Economic uptick and an increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for the company to capture new customers and increase its market share. The company invested a vast sum of money into the online platform bringing new customers from the online channel. A new sales channel for the company opens a new horizon for investments. This opportunity can leverage by better understanding its customer while serving their needs using big data analytics.

When it comes to threats, the business can face the pressure of costs and market performance. The business may find it challenging to innovate considering its large number of products and the operations to manage the supplies and solutions to existing customers. The company produced various products to compete with other industries Secondly; the supply of new products is intermittently resulting in a high and low swing especially in the sales number over a period of time. Since the company is operating in various countries, the currency fluctuations affect the sales given the volatile markets in other countries.

With a few prospective changes, this SWOT is a static assessment analysis of the status quo. As circumstances, White (1986) states that strategies change, capabilities, and threats are the dynamics of a competitive environment. The formulating strategies overemphasize a single internal or external factor in The SWOT analysis. the key internal and external factors have interrelationships that do not reveal the SWOT that may be important in devising strategies (Porter, 1980).

Acklands-Grainger Core Competencies

TThe mean to be the collection of various resources and skills which are existed in a company and those will differentiate the firm in the market. Acklands-Grainger innovation developed a selection of industrial goods and best product availability through online ordering. By building a brand of its own, Acklands-Grainger's quality is a very important function since they are the largest industrial distributor in Canada. The customer service accountability lends more flexibility in online ordering, service, and repair. Acklands-Grainger has a catalog of over 125,000 brand names including exclusive brand product across twelve categories. The strategy followed by the company was to develop a core competency in its core business and diversify into sub-businesses which utilized the same core competencies thus making sure that the focus is to maintain and provide a quality product and customer service to consumers.

The competitive advantage is the condition of an organization for a favorable, efficient and to be in a superior position in the competing market. The company's focus is to offer solutions to the big, small and medium enterprise. It targets the business level customers. The parallel product selection builds strong partnerships with the key manufacturers and offers the broadest selection and best products available. The company provides a strong relationship with the buyers by integrating a 24/7 online ordering system (Grainger, 2012). The no-substitutes are not too relevant since the company was dealing with industrial goods which are very specific in nature. Evaluating the company's total efficiency in core competencies, results in a better benchmarking profitability with the corporation's reputation and the rate of revenue in the same marketplace.

Value Chain Analysis and Benchmarking

Value Chain Analysis identifies sources of competitive advantages while benchmarking are the estimations of the quality of an organization's policies, product, strategy, selection, planning, and project delivery (Investopedia.com, n.d.). The operational structure, distribution, sales, and organization are summarized as follows; with so many offerings and a wide range of solutions, the company is following the functional organizational structure. Creating value propositions can be done via online transactions using web-based support, and voice response system in helping the customers with their orders, support, and complaints (Grainger, 2012). With this, the company can create value across its supply chains activities like marketing sub-elements including logistics, sales and marketing, after-sales service, procurement, technological sophistication, and human resource management (HRM) activities. The 4p's strategy about putting the right time with a right promotion strategy is effective (Porter, 1985). In the weakness standpoint, the company needs a highly dedicated professional and focus on their financial plan shortcomings. The new management needs to discuss and find out the possibilities for marketing their product and competitive pricing. A set of elevated requirements for honesty, morals, and responsibility while providing extraordinary environment is the utmost priority. The company's execution of customer service first, provider accomplices, partners, and networks approach in a minding communitarian groundbreaking technique while the strategic vision and mission achieve not only their business goals but also to establish as a social caretaker. The overall company's financial performance overview has an overall sale of $10.4 billion while yielding a staggering sale of $2.8 billion in September of 2018 as a whole (Grainger, 2018). It faces less rivalry because of its pioneer position in the market in Canada. The company promotes both businesses to business (B2B), business to the purchaser (B2C), and also a portion of a business to government (B2G) (Kumar & Raheja, 2012). The value propositions as stated previously consist of online interventions or web-based supports, and a voice response system providing a customer’s helpline support (Grainger, 2012).