BUSINESS STRATEGY (EXECUTIVE SUMMARY & TOWS MATRIX Essay

BUSINESS STRATEGY (EXECUTIVE SUMMARY & TOWS MATRIX - Essay Example This study looks at the external factors in addition, seeks  to determine their impact on the  operations  of the organization  through  external  factor  evaluation  matrix. A similar exercise will be undertaken for internal factors through internal factor evaluation matrix. The paper evaluates CIGNA Corporation first by using Porters five forces. These include barriers to entry that were found to be high and increasing, the bargaining power of suppliers that was found to vary because of conglomeration in the industry, and a moderately low customer bargaining power. Additionally, the threat of substitute products was low and rivalry between competing firms was found to be high. In the external evaluation of CIGNA Corporation, the paper seeks to evaluate the Corporation’s opportunities and threats. CIGNA Corporation has several opportunities in its external environment, including market exchange rates, which, by being an International Corporation, it can take advantage of by getting higher earnings from regions with high exchange rates. There is also increased demand for health care, increased disposable income that would benefit CIGNA, ethnical growth from an expanding population, and a growth in retirees who require increased levels of health care. The various threats that face CIGNA include the reduction of premiums due to decreased disposable income after the financial crisis, health care reform regulation that directs them to insure patients through using pre-existing conditions, and the global recession that has seen unemployment levels go up thus plummeting the amount of premiums to be paid. The paper also evaluates internal factors that affect the operations of CIGNA Corporation, i.e. strengths and weaknesses. The strengths that are inherent in CIGNA Corporation include a strong national network that helps build credibility, a comprehensive offering that attracts a large customer base, growing global