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External Environtment

In: Business and Management

Submitted By Richie
Words 1149
Pages 5
The External Environtment : Opportunities, Threats, Competition, Competitor Analysis

The main ideas: The external environtment affects a firms strategic action, the firms strategic actions are affected by conditions in other segments of it general environtment, such as the political/legal and physical environtment segments.
Requirement for implementing ideas: External environmental analysis This external environment analysis consist of 4 element : scanning, monitoring, forecasting, and assessing.
Scanning : Scanning entails the study of all segments in the general environment. Through scanning, firms identify early signals of potential changes in the general environtment and detect changes that already under way.
Monitoring : When monitoring, analysis observe environmental changes to see if an important trend is emerging from among those spotted through scanning. Critical to successful monitoring is the firms ability to detect meaning in different environmental events and trends.
Forecasting : When forecasting, analysts develop feasible projections of what might happen, and how quickly, as a result of the changes and trends detected through scanning and monitoring. Forecasting events and outcomes accurately is challenging.
Assessing : The objective of assessing is to determine the timing and significance of the effects of environmental changes and trends that have been identified.
Segments of the General Environment
The Demographic Segment : The demographic segment is concerned with a populations size, age structure, geodraphic distribution, ethnic mix, and income distribution. Demographic segment consist of :
Population Size : While observing the population of different nations and regions of the world, firms also want to study changes occurring within different populations to assess their strategic implications.
The Political/Legal Segment : The

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