WEEK 3 External Environmental Analysis

 External environmental analysis reveals:

– Opportunities: External environment factors which   can help the organization improve its performance and achieve its strategic objectives

  – Threats: External environment factors which can hinder an organization’s performance and prevent the organization from achieving its strategic objectives

😉Based on the external environmental analysis, managers formulate strategies that:

– Take advantage of opportunities

– Avoid/reduce impact of threats

😉Sources of information for external environmental analysis include customer surveys, market surveys, periodicals, journals, reports, books, newspapers, conferences and the Internet.

Factors in the General Environment

Industry Environment Analysis/Competitive Analysis:  Michael Porter’s Five-Forces Model