External and Internal Environments
Assignment 2: External and Internal Environments
Monique Allen Brodnax BUS 499 Business Administration Capstone
Dr. Lucinda Blue
Strayer University
July 28, 2012
Segments of the General Environment
Introduction This research paper will describe Capital One’s general environment, technology and political and legal segments, forces of competition, Predicting and addressing forces, strengths, weakness, opportunities and threats (SWOT) as well as resource capabilities. The external environment affects a firm’s strategic actions. Essentially, if a company decision has created a disaster in the environment, they intern make corrective actions. According to the Hitt et al. (2003),“strategic actions are affected by conditions in other segments of its general environment, such as the political/legal, social/cultural, and physical environment segments” (Hitt, 2003). For more than 20 years, communities have seen Capital One work to build a lastingly immense business in financial services. Capital One has chosen the businesses that they have with extraordinary care. For instance, they have created great tools to manage risk. They have also built a continuous balanced sheet (Capital One, 2011). Specifically, Capital one is best known for creating and building a successful credit card business. Essentially, if unauthorized persons were to get access to personal, confidential or proprietary information, it could result in legal and financial exposure. Capital One business is also subjected to increased litigation risks because of regulated financial services industry, and the structure of the credit card industry including practices in the mortgage lending business (Capital One, 2011).
Technology, Political and Legal Segments The Internet provides significant opportunities for any company. In fact, Capital One would benefit from
Monique Allen Brodnax BUS 499 Business Administration Capstone
Dr. Lucinda Blue
Strayer University
July 28, 2012
Segments of the General Environment
Introduction This research paper will describe Capital One’s general environment, technology and political and legal segments, forces of competition, Predicting and addressing forces, strengths, weakness, opportunities and threats (SWOT) as well as resource capabilities. The external environment affects a firm’s strategic actions. Essentially, if a company decision has created a disaster in the environment, they intern make corrective actions. According to the Hitt et al. (2003),“strategic actions are affected by conditions in other segments of its general environment, such as the political/legal, social/cultural, and physical environment segments” (Hitt, 2003). For more than 20 years, communities have seen Capital One work to build a lastingly immense business in financial services. Capital One has chosen the businesses that they have with extraordinary care. For instance, they have created great tools to manage risk. They have also built a continuous balanced sheet (Capital One, 2011). Specifically, Capital one is best known for creating and building a successful credit card business. Essentially, if unauthorized persons were to get access to personal, confidential or proprietary information, it could result in legal and financial exposure. Capital One business is also subjected to increased litigation risks because of regulated financial services industry, and the structure of the credit card industry including practices in the mortgage lending business (Capital One, 2011).
Technology, Political and Legal Segments The Internet provides significant opportunities for any company. In fact, Capital One would benefit from