IDACORP Inc. Internal and External Environment Analysis
In internal environment of organization, we study about, mission, vision, objectives, employees, management, corporate culture, employee’s behavior etc. External environment may include, macro and microenvironment, in microenvironment suppliers, customers, public perception, financiered etc are discussed. In macro environment PESTLE (Political, Economical, Social, Technological, Legal, and Economical) analysis is done.
IDACORP, Inc.
Idacrop, Inc. is an electric utility company. Company generates electricity; selling, purchasing, distribution is also done by the company. The company has its own two natural gas power plant; it has three coal-fired generating stations.
The CEO Darrel Anderson is very responsible, the mission of the company to provide the reliable, fair-priced energy service for today and tomorrow. The vision is to be regarded as exceptional, ingrate and independent electric utility. Their values are respect, care and safety of their clients (Idacorpinc, 2016). The company emphasis on core business, they are managing strategies towards responsible development, they are supplying adequate energy, their do balance between interest of owner, employees and other stakeholders. They want to serves best to the community, their employees are happy, there is very comfortable environment for them, reward, system, appraisal management system, promotions, incentives etc are given to the employees, this is the reason employees are satisfied and turnover rate is less. There is friendly environment for the employees, the employees are very determine, they have 2000 plus employees. Employees have to face health issues sometimes due to the machineries or change in technology etc. The employees and company had given, $1million, to the company to power corporate, in form of grants, funds etc.
They do analysis of their external environment; they are very concerned about their customers and stakeholder, investors etc, for the customers satisfaction they provide excellence, and safe. They have common stakeholders, their partner do initial investments in common stock, at least $200 and at last $20,000 (Idacorpinc, 2016). Idacrop focus on its external environment also as they are unease with sustainability of the people, they follow government rules and regulation, they follow general capital market conditions, they follow proper code of conduct to regulate their business, equal opportunities with no discrimination, harassment, govt. as a customer etc. They are conducting business for the sustainability and social protection, they have responsible management, and they represent a responsible use of environmental resources. Their products are reliable and consistent (Idacorpinc, 2016).
SWOT Analysis:
The comprehensive SWOT analysis of Idacorp, do strategic analysis in depth; analysis of company business and operations, that what company key strength and weaknesses, and the potential opportunities and threats they have to face.
Internal Factors:
Strengths:
- Idacorp, have very strong position in the market.
- Their researches and manufacturing are reliable.
- They have capabilities and capacities in the industry to grow.
- Have strong relationship with customers, stakeholder and investors.
- Production level is high because have own laboratories, to test and produce electricity, resources etc.
Weaknesses:
- They have very limited market development programs.
- They are having issues with research and development plans.
- They are facing problems with the public and employees health.
External Factors:
Opportunities:
- They can take advantage of the public support.
- They can launch extensive programs, doing experiments, by increasing their developments of power plants and stations.
- They can use good expertise.
- They can gain competitive advantages, by introducing new technology and development.
- They can generate more funds or finance, from the public, as they have good will in market.
- They can develop specific supply chain.
Threats:
- The strength of competitors is a big threat like Japan and China production of electricity.
- Financial and operation threats could be faced by the company.
- There may be significant shift in the cost or prices of the products.
- Political inventions and unstable economy could be a threat.
- There could be uncertainty in the climate policy and carbon pricing.
Suggestions:
After assessing the internal and external analysis of the Idacrop, inc. they need to focus on their external environment more than the internal environment, as they have opportunity of the public support, they need to support the country socially and economically,. In past few years the company and employees have generated amount of $ 1 million to support the functions, as the company has good will, they should try to promote the factors beneficial for the growth of country, industry and company. They need expertise and should focus towards R&D, if they will development in the products related electricity supply, their business could be more develop and they could get benefits, they need to focus on competitors also.
Asian companies are growing, countries like Japan and china are more concerned about electricity plans, and so the competitors can grow in the market and can take advantages. Their supply chain should be strong, so they can supply anywhere around the world, to get competitive advantage supply chain needs to be strong and efficient. Unstable economy can also produce threats for the company, in the case of rise in the price of the products, company can face problems, the shortage of water, coal or electricity can also create big problems for them, so they should have vision about the future and need to manage things accordingly. Policies related to the health could be barriers in their business, as their labor force is facing health issue, who are involved in managing machines or underground activities.
They need to be focus on their internal environment, for strength, they can work more hard and need to implement new strategies, effective strategic planning is needed in this way, to overcome the weaknesses, company to stay focus, example they should expand their market programs by investing more on the projects, as they also have good relationships with investors. They have their own laborites for testing this could be a big opportunities in R&D programs, they need to utilize their capital in effective and efficient way. Idacrop can be more successful in the future if focus on emerging competitors and do planning for research and development.
References:
- Idacorpinc. (2016). Corporate Sustainability. Retrieved April 9, 2016, from https://www.idacorpinc.com/about-us/sustainability
- Idacorpinc. (2016). Dividend Reinvestment and Stock Purchase Plan. Retrieved April 9, 2016, from https://www.idacorpinc.com/investor-relations/shareholder-services/dividend-reinvestment
- Idacorpinc. (2016). The Lines. Retrieved April 9, 2016, from https://www.idacorpinc.com/~/media/Files/I/IDACorp/sustainability/pocket-sustainability-report.pdf