lesson 2 the physical environment analysis Flashcards
(29 cards)
consists of all factors outside an organization that affect its operations and decision-making processes.
external environment
Includes broad external
conditions such as economic
trends, social dynamics,
technological advancements,
political and legal regulations,
and environmental factors
macro-environment
Includes entities and forces
directly affecting the
organization, such as
customers, suppliers,
competitors, and stakeholders
microenvironment
external environment analysis process
e. scanning
e. monitoring
forecasting
competitive intelligence
Identifying key external
forces that impact the organization
e scanning
Observing changes and
trends in the external environment
e monitoring
Predicting potential impacts
of external factors
forecasting
collecting, analyzing, and interpreting information
about business competitors
competitive intelligence
Environmental Scanning Steps
*1. Setting up an environmental scanning
system or program
*2. Collecting and analyzing secondary data
*3. Collecting and analyzing primary data
*4. Identifying issues that consistently surface
*5. Interpreting results and preparing a report
Building sufficient
and reliable data to
determine the
emerging trend
environmental monitoring
Validating collected
data so that they
become precise and
reliable
environmental monitoring
environmental monitoring steps
Steps:
* 1. Identifying emerging
issues
* 2. Evaluating the time frame
of emerging issues
* 3. Deciding on the action to
be taken
refers to the natural surroundings in which a business operates
the physical environment
physical environment examples
geographical factors
natural resources
environmental sustainability
infrastructure
consists of
socio-cultural, economic, technological,
political, and legal forces that influence
business activities.
societal environment
societal environment inlcudes:
demographics
cultural norms
political and legal environment
technological trends
pestel meaning
political
economic
social
technological
environmental
legal
steeple meaning
social
technological
economical
environmental
political
legal
ethical
consists of factors and forces that
influence competition and
business strategies within a
particular sector.
industry environment
is a group of companies
offering similar or closely related
products or services that satisfy the
same needs of consumers.
industry
factors in industry envi
competitive landscape
market demand and supply
barriers to entry
substitutes and complementary products
players in industry environment
. Customers
2. Suppliers
3. Creditors
4. Employees
5. Government
6. Competitors
factors in industry analysis
- The industry itself
- The competitors
- The business itself
FIVE STAGES IN THE EVOLUTION OF
INDUSTRY
- Embryonic industry
- Growth industry
- Shakeout industry
- Mature industry
- Decline industry
