How want to evaluate a company's external environment???

Bismillahirrahmanirrahim..
All praises to ALLAH s.w.t..

Assalamualaikum w.b.t to everyone, hopefully our life today is better than yesterday..

Thanks to Allah for giving me strength to update my blog and also share what i have learned in Strategic Management subject during a lecture session for today. I like the new topic that i have learned today. The topic is. . . . . . . . . . . . .hehehe

'EVALUATING A COMPANY'S EXTERNAL ENVIRONMENT'... I think this is a great topic because i have learned this topic in another subject such as Marketing, Introduction to Business and many others in the previous semester. This topic more focusing on external environmental factors that should be considered by all companies. Why every company need focus on it??? It is because by knowing the certain factors of company such as internal and external factors, it able for company to make a plan of handling their production cost, competition, target and another things. This topic also touched six components in PESTEL analysis which are;

1. Political factor
2. Economic factors
3. Social factors
4. Technological factors
5. Environmental factors 
6. Legal/Regulatory factors

The purpose of using this analytical tools is to identify the external factors that will giving influence in business performance.

In briefly, another tools have been used which are related with this topic is Porter's Five Forces Analysis. It consists of five forces which are;

1. Threat of New Entry
2. Bargaining Power of Buyers/Customers
3. Bargaining Power of Supplier
4. Rivalry/Competitors
5. Threat of Substitutes

This analysis also can be used by manager or marketer to evaluate a market potential and company performance especially for the future. By this analysis, a manager can be determined the weakness, strength, opportunity and threats of their company.

I think that's all for today that i can share with all of you...thanks for reading...:)

 

"A GOOD STRATEGY CAN OVERCOME ALL PROBLEMS THAT COME."