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Employing Strategy in a Competitive Environment

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Employing Strategy in a Competitive Environment
Strayer University
BUS59920
[ May 26, 2013 ]

Introduction Strategic management is a vital part of managing today’s businesses. Environmental scanning is one component of strategic management where various economic, political and social factors are studied, that might affect the business. Environmental scanning can help businesses identify untapped markets and make costly mistakes. Two common strategic management tools used by managers are; SWOT analysis and PESTLE analysis. “PESTLE is an acronym for "political, economic, social, technological, legal and environmental." The purpose of a PESTLE analysis is to identify all of the various external political, economic, social, technological, legal and environmental factors that might affect a business. Managers then assess the risks that the identified factors pose and use that knowledge to inform decisions. SWOT is an acronym for "strengths, weaknesses, opportunities and threats." The goal of a SWOT analysis is to create lists of all of the internal and external strengths, weaknesses, opportunities and threats to inform strategic planning decisions. SWOT is meant to help businesses double down on strengths, eliminate weaknesses, pursue opportunities and avoid or prepare for threats.” (Hamel)
Environmental Scan Indicating the Most Significant Environmental Threats An environmental scan was completed for the software and IT Service Company in the Washington, DC area. Politics plays a big role in the private business sector. Companies in the Washington, DC area focus on getting certified and applying for government contracts, as well as business in the private sector. Unemployment is 5.2% (Local Area Unemployment Statistics) in the Washington, DC area. Technology companies in this environment are amongst the top performers in the country. The Washington DC area

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