•ENVIRONMENTAL THREAT- Challenges posed by an unfortunate trend - lead to erosion of company’s position •ENVIRONMENTAL OPPORTUNITY - an attractive arena - that company enjoys a competitive advantage
Macro Environment Micro environment Relevant environment
. Better interactions needs better
understanding of environment so that internal capabilities are perfectly matched with external
opportunities and threats. The major challenge of environment to a business firm is its
Environmental Scanning: The study of all components of external...
China there are many lower income consumers that could not afford at Western fast food chains, which charge $3 for a basic meal. (threat)
b. Sociocultural Environment
• Chinese customers are eager to try out burgers and fries, which were vastly different from local Chinese quick service...
. Environmental analysis is a holistic exercise in which total view of environment is taken rather than viewing trends piecemeal. Though for environmental analysis, the environment is divided into different components to find out their nature, function, and relationship for searching opportunities and threats and...
SWOT analysis is one of the techniques in strategic planning used to analyze the resources and the environment for the business. SWOT is the abbreviation for strength, weakness, opportunity and threats. Strength and weakness are considered the positive and negative internal factors...
company’s performance as against competitors.
Companies must be responsive to the external business environment. Knowledge about the business environment is essential to detect key trends and events. Successful managers must recognize opportunities and threats in their firm’s...
external influences, it is important to highlight the specific processes in an external environmental analysis. This analysis is performed so that firms can correctly identify potential opportunities and threats in their external environment, and involves continually scanning, monitoring, forecasting...
environment, and (4) the threats in its competitive environment. This set of four element strengths, weaknesses, opportunities, and threatshen used by a firm to gain competitive advantage, is often referred to as a SWOT analysis. SWOT was developed by Ken Andrews in the early 1970s. An assessment...
Current rivals in a good position to defend Buyer power is high Supplier power is high Intensity of rivalry is high Threat of substitute products is high
Chapter 3 – Macro Environment
INTENSITY OF RIVALRY
• • • • • • • • • • • Sellers are actively and...
implemented at the EFIS. The system should be authorized to operate in the limited threat environment as defined in appendix (1) and with the vulnerabilities identified in applicable Baseline Security documents. The accredited system should be authorized to process information classified as important...
The marketing environment has been rapidly changing in the last twenty years. Having a strong customer focus and heavy commitment are essential and satisfying customer’s needs and wants are an important issue in any successful company (Kotler & Armstrong 2005:p5). To understand all the...
which touches the organization activities or functions very close compared to Macro-environment. This includes factors such as: Bargaining power of suppliers, bargaining power of consumers, Threat of entry of competitors, Competition from substitutes, and competition between firms. Sometimes it is...
company’s strategic decisions can be influenced by a number of factors. The external environment can be one of those things and should be closely monitored. You should be aware of changes and trends in the environment around you, know what your customers prefer and what your competitors are up to. You...
. Explanation of the Dimension within the General Environment and specific Force coming from that dimension that is creating the threat
2. Explanation of why it’s a threat and how it affects the organization
IV. Summary (10 points)
A. Discussion as to how the organization can capitalize on...
involved in the strategic formulation analysis.
2.1. Generic Strategies
The purpose of the generic strategies is to identify opportunities and threats in a firm so that they are able to take a defendable position in the industry. There are 5 basic generic strategies cost leadership, differentiation...
result on the other SWOT elements, however, remain. The results of the analysis of the external environment are divided into opportunities and threats. Again, it is possible that a result cannot be qualified. This point is then dropped. Worksheets 3 and 4 in part 3 can be used to give the designation...
performance can vary because of their
external environment. For analysis purposes we'll break the external environment up into
the broad macro environment and a more narrow industry environment. As their names
suggest, both of these environments are outside the firm and generally beyond the firm’s...
Discuss how the organization can minimize this weakness.
III. Opportunities / Threats (60 points) – Due end of Week Three
A. First Opportunity
1. Explanation of the Dimension within the General Environment and specific Force coming from that dimension that is creating the opportunity
relationships within an organization’s internal and external environment. It helps the managers to decide the future path of the organization. Scanning must identify the threats and opportunities existing in the environment. While strategy formulation, an organization must take advantage of the...
exposed to peer violence. Nevertheless, recent school attacks carried out by students have shaken the image of schools as reliably safe and secure environments concerning educators, parents and students. Incidents of school violence occurred in 37 communities across the country between 1974 and June 2000...
opportunities open to you, at the same time that you minimize the impact of weaknesses and protect yourself against threats.
Used after detailed analysis of your threats, opportunities, strength and weaknesses, it helps you consider how to use the external environment to your strategic advantage, and so...
about accelerating damage to the environment started to articulate. Concern was much greater than before and the first United Nations Conference on Environment was held in Stockholm in 1972. Numerous conferences were held since then and the idea of linking environment and both national and international...
, basic financial condition, and so on.
3. Situation Analysis Section: Include analysis of internal and external environment of the organization i.e. conducting SWOT (Strengths, Weaknesses, Opportunities, and Threats). You would analyze the internal environment of the organization to discuss the...
the external environment affecting a business now & in the future. The P.E.S.T.L.E analysis reviews this through a broad range of factors and stands for: P - Political environment E - Economic environment S - Social & consumer Trends T - Technological & scientific environment L - Legal & Regulatory...
PESTEL Analysis (Environmental Trends Analysis)
Political, Economic, Social, Technological, Environmental, Legal
To analyze the external environment and generate ideas where are the opportunities and threats.
-Economic (government spending) -Social (health)
-Legal (new regulations, good or bad...
function of the environment where it operates and the product of intrinsic strategic thinking from within the carrier. The averment could be viewed in terms of Porter’s five forces, i.e. threat of entrants, power of suppliers, power of buyers, substitution effect, and rivalry:
• Threat of New Entrants...
to 1,750-word comprehensive security plan for the target environment you submitted in Week Five. In your plan, include the following items:
o The floor plan of the target environment
o A list of threats
o A risk assessment for each threat
o Current vulnerability gaps
o Countermeasures that...
opportunity and threats to business. So, they are both interrelated and interconnected. It operates in a dynamic environment.
According to Keith Davis, “Business environment is the aggregate of all conditions, events and influences that surround and affect it “
Thus, Business environment is...
Opportunity Rating Threat Rating
Wind power is a more mature technology. new complex transportation solutions are needed 4-4
Natural Environment Forces:
One of the significant factors that may bring to the company some threats in the operation of the business is the environment factors. Despite...
. They can also provide some competitions for customers to play games in case they got bored.
The Porter’s Five Forces Model indicates five most common threats faced by the firms in their local competitive environments. These are threat of entry, threat of rivalry, threat of buyers, threat of...