The Impact of Managerial Factors and External Environmental Factors on Company's Performance

Abstract

The globalization of the world economy and the era of digitalization that continues to grow fast drives businesses to enter the era of VUCA (Volatile, Uncertain, Complex, and Ambiguous). Given the COVID-19 pandemic, all sectors of the business industry are impacted. So, it will take innovative and radical efforts to develop business models to adapt to the current conditions. WS Group, an Indonesian culinary business, has been going through transformation since 2016 and their efforts have been a turbulent journey as they have not seen an increase in the company's performance. Thus, WS group is seeking ways to solve this problem. So, this research followed a quantitative research approach using descriptive and verificative analysis to evaluate WS Group’s internal and external factors that impact the formulation of strategic planning and its influence on the company’s performance. The result was that simultaneously, managerial factors and external environmental factors combined together have a significant impact on company’s performance. Furthermore, the study's results are expected to be a source of information for WS Group to develop a proper strategy formulation that can increase market share. Lastly, the theories drawn out from this research can be a reference for general and academic knowledge regarding the implementation of strategic planning.

Keyword:Strategic Planning, Managerial Factors,External Environment Factors, Company Performance