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Environmental Analysis: Yellow Transportation

Environmental Analysis: Yellow Transportation
An organizations external environment consists of three interrelated sets of factors that play a principal role in determining the opportunities, threats, and constraints that Yellow Transportation (YRC) will face. The first factor is the remote environment that comprises of factors originating beyond any organizations operating situation such as economic, social, political, technological and ecological factors. The second factor is industry environment. This more directly influences organizations prospects originating in the environment of its industry like new entrants, suppliers, buyers, substitutes and current competition. Finally, the operating environment comprises factors that influence an organizations immediate competitive situation that could include the factors, specific completion, creditors, and the labor market. These three sets of factors provide many of the challenges that a particular firm faces in its attempts to attract or acquire needed resources and in order to obtain profitably and success. The following paragraphs will give a brief company history, mission and vision and list the core YRC values. In addition, an environmental synopsis of the freight industry will be addressed.

YRC History
According to the website for Yellow Transportation (2007), YRC Worldwide traces its origins to 1924 when A.J. Harrell, an Oklahoma City entrepreneur, founded a bus and taxi company and named it Yellow Cab Transit Co. In 1926, he shortened the name to Yellow Transit Co. In 1929, AJ was concerned about road safety, so he commissioned the E.I. DuPont Co. to determine the color that would be most visible on the tractors from the greatest distance on the nation's highways. DuPont's research found the color Swamp Holly Orange. YRC still use this color on Yellow trucks today (Yellow Transportation Worldwide, 2007).
In April 1952, an ownership group led by George E. Powell, Sr., bought the company. The group...