Propositions: The Inputs National Presto Industries, Inc.

¶ … propositions: The inputs National Presto Industries, Inc. consisting Organizational Environment factors, Internal Resource factors, Historical Tradition factors, [highly support, partially support, support] company's mission.

National Presto Industries

Key Input Factors

Organizational Environment Factors

The company's activity is influenced by external and internal environmental factors. The external environment is represented by the economic, social, political, legal, technological, and environmental issues. Economic factors are the most important category the can affect companies' development. The economic situation of the country is able to determine what strategy the company should use. The international economy is also important, because the process of globalization has intensified business relationships between suppliers and customers in different countries. These economic conditions influence the income level of National Presto's customers. The purchasing power of individuals significantly influences the activity of the company.

Political factors must also be taken into consideration when establishing the company's strategy. This is because an unstable political environment can influence investors' decisions. In addition to this, political battles between different parties lead to country strategies that do not favor the activity of certain countries.

The so environment is another factor of great importance. The social policies developed by countries determine the purchasing power of individuals. Therefore, it is important to adapt the company's strategy to the social environment. Also, the social and economic development of countries determines what types of business are the most favorable in each case.

Regarding the internal environment, the most important components are represented by: customers, employees, managers, owners, the government, suppliers, the community, and others. Customers represent the central point of the company's strategy. In other words, the strategy must be oriented towards identifying their needs and satisfying them.

The company's suppliers have a great impact on its activity. Based on the materials and services purchased from its suppliers, National Presto creates competitive advantage. Therefore, it is important to develop a strong relationship with these suppliers. Managers also play an important role in the company's success on the market. This is because they must focus on increasing the efficiency of the decision making process and on developing and implementing the strategy.

These factors and their evolution have a great impact on the company's strategy, but also on internal resources. This is because economic factors influence workers' salary levels, and the financial resources that the company can use. They also influence customers' purchasing power.

Internal Resource Factors

The company's resources are represented by financial, technical, and human resources. The company's financial resources are necessary for the investments made in product development, activity expansion, and in improving product quality. Based on the level of its financial resources, the company establishes what production cost can be applied. This also determines the price of the company's products and services.

Technical resources also have a significant impact on the activity of National Presto. The importance of this factor is reflected in the technological development that the company uses in order to develop high quality products. National Presto understands that customers are interested in products of higher quality, although they are more expensive.

The company's human resources represent the most important resource that National Presto can use. Basically, the company's success relies on the efficiency and productivity of the personnel. Therefore, it is important to invest in this resource by developing several training programs intended to improve the skills of employees.

These resources cannot influence environmental factors, but they have an important influence on the company's activity and strategy. In other words, National Presto's success relies on the activity of its human resources. Therefore, their impact must be taken into consideration.

Historical Tradition Factors

The company's tradition on the market is an important factor that helps National Presto create competitive advantage. It is a well-known fact that most customers orient towards companies with important tradition in their business field. This is because such companies have proven the quality of their products and services. Therefore, it is important to invest in company image.

The historical background of the company is also able to influence the purchasing decision of customers. The company's history reveals its orientation towards certain business direction and relationship with the community. The current competitive business environment determines companies to intensify their corporate social responsibility activities.

Company Strategy

The strategy developed by National Presto Industries relies on innovating and developing new product designs that can be produced and commercialized profitably (Seeking Alpha, 2011). The company focuses on expanding its range of products and services in order to attract a larger number of customers and increase its market share. The most important strength of National Presto is represented by its services and warranty programs.

The generic competitive strategies developed by Porter can be applied in this case. In accordance with this theory, the strategy of National Presto can be categorized as a focus strategy (NPK, 2011). The company has developed and implemented a combination of cost focus and differentiation focus. Basically, the company is interested in lower cost production, in order to introduce price competitive products on the market. However, this is difficult to achieve, because most of its competitors prefer to outsource their production process to cheaper destinations like China and India. This allows them to benefit from reduced production costs, which leads to lower prices for their products. The reduced incomes of customers determine them to orient towards competitors' cheaper products.

In addition to this, the company also focuses its strategy on differentiation. Given the fact that National Presto Industries has not expanded its business on international level, in comparison with most of its competitors, it is important that it exploits the customer segments in the U.S. And Canada. Therefore, National Presto Industries analyzes its target customers and identifies the needs that are less satisfied by competitors. Based on this analysis, the company can develop products and services that can provide a higher level of satisfaction.