The paper 'External and Internal Environment of Reynolds American Incorporated " is a good example of a management case study. RAI is a company in the US that is basically in the production line of manufacturing tobacco-related products. Some of the company’ s products include smokeless tobacco, cigars, free tobacco, and nicotine. The company was founded in the year 1875 and has been among the major producers of tobacco in America (Reynolds American Incorporated 2012). Up to date, RAI is the second-largest producer of tobacco products in the US and some of its brands include the Pall Mall, Kool, and Salem and these brands have among the best-preferred cigarette brands in the US.
Despite the stiff competition in the market by other companies that also manufacture cigarette products, RAI has maintained its market positions by clearly applying to conduct the external and internal environment analysis and applied various strategies in the market. In this regard, therefore, this report will focus on both external and internal environmental analysis of RAI Company. The report will also focus on stakeholder analysis and aspects which raise issues on ethics and social responsibility. Analysis of the external environment of RAI The success of Reinhold American Incorporated greatly depends on the analysis of the external and internal environment.
The tools that RAI Company has managed to successfully implemented are the PESTLE analysis, the five forces of analysis, and the competitor analysis. To start with, PESTEL comprises factors such as political, economical, social, technological, environmental, and legal factors (Golubkov 2000). The RAI Company has managed to be among the best suppliers of cigarette products in the market, because of the political advantage.
There was no restriction on the consumption of the cigarette products and this made the company increase their sales tremendously than the competitors. In this regard, it can be said that the company has a political advantage (Golubkov 2000). In addition, the rate of taxation by the government is not too high which ensures that RAI enjoys huge profits made.
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