Custom essays on STERICYCLE SWOT ANALYSIS

Any company operates in close connection with what in marketing theory is called the external environment. The environment usually include: buyers with their demographic characteristics that determine the distribution of goods, competitors, intermediaries: transport companies, sales agents, etc., financial institutions, advertising agencies, customs and other government agencies, are preparing legislation, economic situation , the political climate, the development and achievements of scientific and technological revolution, cultural traditions. (Williamson et al., 2003)
Thus, the concept of the environment consists of two components – the macro factors and factors of the immediate environment of the firm. The factors that are usually related to macro: the economic condition of the country, political and legal aspects, social and cultural environment, scientific and technical and technological development of society. The study of the economic condition allows to understand the existing laws – the rate of inflation, the ratio of currencies, taxation rules and trends, unemployment, and see the possibilities of natural and human resources. Analysis of the political environment and legal aspects will allow us to establish for themselves the permissible limits of action in relation to other aspects of the legal system. The study of macro-social component allows to determine the standard of living of the population, its relation to quality of life, values, trends, etc. Analysis of technical, scientific and technological development of society is necessary to be able to use in the practice of modern science and technology in the field of advertising, management, delivery, sale, and in the field of information security, which can be a significant competitive advantage. (Williamson et al., 2003)
2. Analysis of the internal environment.
The internal environment includes functional structure of the firm, providing management, development and testing of new products, promotion of products to customers, sales, service, relationships with suppliers and other external bodies. The concept of the internal environment also includes qualification of personnel, communication system etc. And when studying the internal environment of the firm we should focus on the organizational culture of the organization.
Thus, the analysis of the internal environment is a managerial study of functional areas of organizations in order to determine the strengths and weaknesses. Strength is what the company has succeeded. It may be in the skills, experience, resources, achievements (the best product, advanced technology, better customer service, brand recognition). Weakness means the lack of something important in the functioning of the company that it fails in comparison with others. When the strengths and weaknesses are identified, both lists are carefully studied and evaluated.
In terms of strategy formulation, strengths of the company are important because they can be used as a basis for anti-crisis strategy. If they are not enough, the company’s managers should urgently establish a base on which this strategy is based. At the same time, successful crisis management strategy is aimed at eliminating the weaknesses that contributed to the crisis. (Harvard Business School, 2005)
Market opportunities and threats are also used to determine the anti-crisis strategy of the enterprise. To do this, it is necessary to analyze the industry that can provide the potential profitability of the enterprise, and threats adversely affecting the company. Opportunities and threats do not only affect the state of the enterprise, but also indicate what policy changes need to be taken. The anti-crisis strategy should take into account the perspectives that correspond to the opportunities and protect against threats. (Harvard Business School, 2005)
For the analysis, we can construct a matrix, in one part of which we put the identified environmental factors that have a positive impact on the organization (opportunities), in another – environmental factors that have a negative impact on the organization (threats).
SWOT matrix for Stericycle company is the following:
Strengths Weaknesses
– Strong market position
– North America’s largest provider of medical waste services
– Acquisition strategy
– Fully integrated medical waste management network
– 20x larger than its nearest competitor
– Electro-thermal deactivation system
– Experienced Management Team
– Political affiliations – $724 million of long-term debt
– Low margin for large generator business
– Heavily regulated industry
– A reduced willingness to explore new opportunities
– Acquisition strategy

Opportunities Threats
– Further growth into global markets
– Acquisitions
– Training potential for medical community
– Moving into new market segments that offer improved profits
– An ineffective competitor vacated market – Highly competitive industry
– Interest rates
– Activist groups
– Governmental Regulation
– Patent Expiration for ETD system
– Public concerns over pollution from incinerators.
– Local authority refusing plans for future building expansion

The core part of the analysis is filling the matrix in which are recorded and then compared the strengths and weaknesses of the company, as well as opportunities and threats of the market. This comparison can clearly determine what steps can be for the company and on what issues need special attention. This matrix provides managers with structured information field, in which they can strategically navigate and make decisions. (Harvard Business School, 2005)