1. Importance of Analyzing the Ex- ternal Environment -Managers can mitigate threats. -Managers can leverage opportunities. -Gain understanding of potential im- pacts. -Understand the source / proximity of factors. 2. The PESTEL Model -Groups environmental factors into six segments: --Politi...
1 importance of analyzing the ex ternal environment managers can mitigate threats managers can leverage opportunities gain understanding of potential im pacts understand the source proxi
MNG3701 - Strategic planning - LU3: Strategic Analysis: analyzing
the external environments. 2
Study online at https://quizlet.com/_52kag3
1. Importance of Analyzing the Ex- -Managers can mitigate threats.
ternal Environment -Managers can leverage
opportunities.
-Gain understanding of
potential im- pacts.
-Understand the source /
proximity of factors.
2. The PESTEL Model -Groups environmental factors
into six segments:
--Political
--Economic
--Sociocultural
--Technological
--Ecological
--Legal
These factors can create:
--Opportunities
--Threats
3. Political Factors -Processes & actions of
government bodies
-Firms can shape this factor through
--Lobbying
--Public Relations
--Contributions
--Litigation
Example: Tesla
-Has a build-to-order sales model
-Cuts out dealers
-Dealers are lobbying for new
legislation
1/
, MNG3701 - Strategic planning - LU3: Strategic Analysis: analyzing
the external environments. 2
Study online at https://quizlet.com/_52kag3
4. Economic Factors
2/
, MNG3701 - Strategic planning - LU3: Strategic Analysis: analyzing
the external environments. 2
Study online at https://quizlet.com/_52kag3
-Largely macro-
economic Examples
include:
--Growth rates
--Levels of employment
--Interest rates
--Price stability
--Currency exchange rates
5. Sociocultural Factors Society's cultures, norms, and value
-Are constantly in flux
-Differ across groups
Demographic trends
-Present opportunities and threats
-Population characteristics
related to age, gender, family
size, ethnicity, sex- ual
orientation, religion, and
socioeco- nomic class
6. Technological Factors Application of knowledge
-To create new processes
-To create new products
Innovations in process technology:
-Lean manufacturing, Six Sigma
quality, and biotechnology
Innovations in product technology:
-Smartphones, computer
tablets, and high-performing
electric cars such as the Tesla
Model S
7. Legal Factors Official outcomes of political
processes:
-Laws
-Mandates
3/
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller YOURVERIFIEDEXAMPLUG. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R223,27. You're not tied to anything after your purchase.
