Why Does the Environment Matter? First, the environment provides resources that an organization needs in order to create goods and services. Second, the environment is a source of opportunities and threats for an organization. Third, the environment shapes the various strategic decisions that executives make as they attempt to lead their organizations to success.

1. Environmental analysis
Strategic Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Environmental analysis
• Why Does the Environment
Matter?
– First, the environment
provides resources that an
organization needs in order to
create goods and services.
– Second, the environment is a
source of opportunities and
threats for an organization.
– Third, the environment shapes
the various strategic decisions
that executives make as they
attempt to lead their
organizations to success.

4. PESTEL Analysis
• P Is for “Political.
• E Is for “Economic”.
• S Is for “Social”.
• T Is for “Technological”.
• E Is for “Environmental”.
• L Is for “Legal”.

5. Competitive Analysis
Porter’s five force model

6. SWOT Analysis

7. The SWOT Matrix