Environmental Analysis
MBA/501
Dr. Ellen Szarleta-Instructor
September 23, 2006
Environmental Analysis
Introduction
There are three factors that have principal roles in deciding the constraints, opportunities, and threats that any company will face. The remote environment is the first factor which consists of factors that originate beyond any company's operating situation such as technological and/or economic factors. The industry environment is the second factor that influences company's prospects originating in the environment of its industry like competitor rivalry and the bargaining power of buyers and suppliers. The third and final factor is the operating environment which consists of factors that influence a company's competitive situation which includes factors such as competitive position, suppliers, clientele, and creditors. These three sets of factors provide the challenges that a particular company faces in its attempts to attract or acquire needed resources and to profitably market its goods and services (Pearce 2005).
Remote Environment
A factor in the remote environment for Wabtec is in the area in technology.
To avoid obsolescence and promote innovation, a company must be aware of technological changes that might have industry influence (Pearce, 2005). Creative technological adaptations can suggest possibilities for new products, for improvements in existing products, or in manufacturing and marketing techniques (Pearce, 2005). A long-term objective that Wabtec must address is in this area is product innovation. The company needs to introduce distinctive and innovative new products in 2007 and beyond to support emerging consumer trends. Wabtec faces competit ...