The world at large forms the external environment for businesses. A firm must confront, adapt to, take advantage of, and defend itself against what is happening in the world around it to succeed. To make gathering and interpreting information about the external environment easier, strategic analysts have defined several general categories of activities and groups that managers should examine and understand. Organizations and industries are again at a crossroads when confronting new and Read More
Sectors of the Business Environment
Businesses do not operate in a vacuum but rather in a dynamic environment that has a direct influence on how they operate and whether they will achieve their objectives. This external business environment is composed of numerous outside organizations and forces that we can group into seven key subenvironments: economic, political and legal, demographic, social, competitive, global, and technological. Each of these sectors creates a unique set of challenges and opportunities for Read More
SWOT Analysis
The SWOT analysis is an instrument used by businesses and organizations to organize internal and external factors that affect a product or business into separate categories. Due to its simplicity, the SWOT is a popular method for companies to identify their competitive advantages and disadvantages. The outcome of a SWOT analysis can be used to make strategic decisions that are consistent with a company’s capabilities. On the internal side, you will want to gain a sense of the organization’s Read More