3rd week of classes: Evaluating Company’s External Environment

Salam. Hye friends! How are you? 

As the time move faster, now we are already in week four for this semester. So now, I will share with you what I have learned in the class of Strategic Management for last week as well as for this week on my next post. For this topic (topic 3), we have covered on Evaluating Company’s External Environment. In this topic I learned various ways in evaluating a company external environment.

  Here are the lists on the way to analyze and evaluate company’s external environment.

1.       PESTEL analysis

2.       Five Competitive Forces

3.       Strategic Group Mapping

4.       Key Success Factors

In each method used, there will have certain things to be focused on. For example, in PESTEL analysis there are 6 elements that will help us in evaluating company’s external environment. There are:

-         - Political factor, economic condition, socio cultural factors, technological factors, environmental forces and legal and regulatory factors.

-For Five Competitive Forces, here are the things that will be focused on:

-          Buyers, suppliers, new entrants, rivals and substitute product.

As I mentioned before, each method used to analyze the external environment will focused on certain things. However, most of the methods are almost similar. Last but not least, all the methods above are used by the company and the organization to know how it will effect to the business. It is also a good analysis for the company to have their own strategic planning to keep sustain in the industry as well as to keep their business successful.

That's all for this topic. Thank you guys for your time. :)

Wassalam.