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External Factors

More specifically the quality of the products and services had been questionable and customers had reported the deviations between the qualities of products offered. The other weakness is that of corporation’s policies, measures, and guiding principles which was said to be weak since in some market segments the corporation had performed poorly. Such regulations had been directed to the human resources, that is, the entire workforce and the management team that had been performing disappointingly in their respective responsibilities during their normal work duties.

Negligence on the side of the marketing executives had also been pointed out and reports suggest that they had not come up with suitable marketing strategies to deal with the intense competition in the marketplace at that time. In fact there was a spat that the products that WorldCom was offering at then were not of standard, an issue which led to declining in its market share. Also the systems of production, controls, and work methods had been under scrutiny in the past few years for such poor performance.

There were several allegations that the work methods used were not expedient in the firm and thus could not cope with change and the ever increasing rivalry (Anthony, 1998).

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External factors are usually divided into micro and macro environment. Micro environment is about actual and political transactions used in a firm and its environment in day to day activities of a company that include; customers, suppliers, intermediaries among others. On the other hand macro environment is about external higher order forces which do not affect an organization dealing as yet or directly but may do so in the future.

External factors may include; economic, technological, competition, political/legal, and social-cultural factors. However, external environment of a company may be explicitly explained when opportunities and threats of the firm are considered. An opportunity in this aspect can be defined as any event, development, or a feature of the external environment which creates conditions that are advantageous to WorldCom in relation to a particular objective or set of goals to be attained.

It is an attractive venture for a corporation’s operations which if exploited will lead to a significant upward change with desired results such as increase in profit margins and growth. There are many opportunities that existed for WorldCom in relation to emerging markets all over the world. By then there were great emerging markets in Africa, North America, and South America among other continents. Research reveals that up to now there is great investment demand in these places that WorldCom could have made use of such openings.

With globalization there is significant increase in the movement of products and services which created a great opportunity for WorldCom to expand its investments (Cullen and Boteeah, 2005). The technological innovation, for illustration, that of e-commerce could have been utilized by the business in order to enable the expansion of the market share thus increasing its profits and enhancing growth. Since WorldCom Corporation was among the largest firms, its competitive advantage allowed the corporation to penetrate to more new markets than its rivals.

If the company could have fully utilized this it could have acquired an upper hand in terms of competition and exploring of virgin markets and it could have seen its profit margins going up thus acquiring more power in terms of resources to compete globally. The corporation can also utilize its opportunity of strong financial base and embark on acquiring new machines that will aid in producing quality products.

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