This document analyzes the external environment factors that impact an organization through a PESTLE analysis framework. It identifies several macroeconomic, social, policy, technological, industrial, and business environment factors that present opportunities or threats. These include factors like rising per capita income, increasing urbanization, changes in import/excise duties, emission standards, raw material prices, and expansion plans of other players in the industry. Conducting an external analysis helps an organization understand the external environment, identify opportunities and threats, and formulate effective business strategies.
This Module covers Definition,Relevance , Characteristics , Level, Approach of Strategic Management along with Strategic Management Model, Strategist and Pitfall in Strategic Management
This Module covers Definition,Relevance , Characteristics , Level, Approach of Strategic Management along with Strategic Management Model, Strategist and Pitfall in Strategic Management
Environmental Analysis is described as the process which examines all the components, internal or external, that has an influence on the performance of the organization.
Strategic management is the management of an organization’s resources to achieve its goals and objectives.
13 commandments for crafting successful business strategiesDr Wilfred Monteiro
Most upcoming enterprises are so caught up in fulfilling targets for the next quarter that they have no time to plan and analyse and think of LEVEL NEXT as the achievement platform...here are some useful tips to plan strategically
Environmental Analysis is described as the process which examines all the components, internal or external, that has an influence on the performance of the organization.
Strategic management is the management of an organization’s resources to achieve its goals and objectives.
13 commandments for crafting successful business strategiesDr Wilfred Monteiro
Most upcoming enterprises are so caught up in fulfilling targets for the next quarter that they have no time to plan and analyse and think of LEVEL NEXT as the achievement platform...here are some useful tips to plan strategically
Scenario Analysis: Planning for Uncertain FuturesAugust Jackson
Scenario analysis is a method for creating strategic foresight that overcomes the shortcomings of traditional forecasting methods. It helps strategists and decision makers create a shared vocabulary and baseline for quality strategic planning.
I delivered this presentation to the Society of Competitive Intelligence Professionals DC chapter on January 14, 2010.
Assigned CaseUnilever· Research and analyze secondary data i.docxdavezstarr61655
Assigned Case
Unilever
· Research and analyze secondary data including 1) the firm’s website (e.g., Investor Relations, About Us, etc.),
2) their 2015 10-K (Google this), and 3) business databases including industry data such as IBISWorld, BizMiner, and company data, such as Business Source Complete, LexisNexis, etc.
· CITE ALL SOURCESEXTERNAL ENVIRONMENTAL ANALYSIS
PESTEL Analysis Conduct PESTEL analysis to identify the most important external forces in the general/macro-environment affecting the company and industry. Which present or future threats or opportunities are important to the firm?
Political Forces (e.g., tax policies such as tax incentives by the government that may be favorable to the firm, financial bailouts by government, impact of monetary policy and fiscal policy on the industry, lobbying/political action group pressures that ma impact the firm, etc.)
Economic Forces (GDP growth rates, levels of employment, interest rates, Price stability, currency exchange rates, etc. See IBISWorld for Economic Drivers)
Socio-cultural Trends (Demographic trends, AND the attitudes and preferences/what is important to society and the firm’s primary market (e.g., U.S. and other key countries the firm targets)
Technology/ Innovation & Emerging Trends
Ecological/Environmental Sustainability (Think of pollution, depletion of world resources, disasters caused by companies such as BP’s oil spill. This segment may overlap with both sociocultural attitudes toward alternative energy sources, environmental regulations, and technological developments.)
Legal (e.g., identify 3-4 most significant regulations impacting the industry, state laws impacting your firm, etc.)
.
Business Environment Unit -2 for B.Com(Hons) Semester 2 Lucknow UniversityUmakantAnnand
POLITICAL ENVIRONMENT
The political environment comprises of many political factors which effect the business activities at various times and impact, like the bureaucracy levels, corruption, freedom of media and press, tariffs and related measures of trade control, employment regulation, environmental and pollution control laws, health and social safety laws, Competition regulation and cartelization, Tax policy (tax rates and incentives), Trade unionism and related laws, consumerism, e- commerce and related laws about the quality and quantity of the product, Intellectual property law (Copyright, patents etc.). All this is done based on the ideology of the political party forming the government which attains it by formulating and executing them under a set of policies and programmes. This is attained through legislations and enactments, rules and regulations, systems and procedures, policies and plans, statements and announcements, directives and guidelines by the Government, which is the essence of the politico-legal environment.
A Buyer's Guide to Economic Impact AnalysisTodd Graham
This presentation introduces economic impact analysis. Including: What is an economic impact analysis? Issues and best practices. A case study diving into an infrastructure project in the MSP metro. Assumptions and specification of baseline vs. build scenarios.
Learning objective: Be prepared to ask tough questions of methodology, specification, data inputs and assumptions.
2. *
*Helps organization to identify Opportunities
and Threats
*To consolidate and strengthen organization’s
position
*Provides the strategists of which sectors have a
favourable impact on the organization
*Organization knows where its stands with
respect to its environment
*Helps in formulating appropriate strategy
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7. *
*Legal Factors
*Policies related to licensing , monopolies
*Policies related to export and import
*Policies related to distribution and pricing
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9. *
*Dividing the environment into different
sectors.
*Analysing the impact of each sector on the
organization.
*Subdividing each environmental sector into sub
factor.
*Impact of each sub sector on organization in
form of a statement.
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10. *
+Help to determine the key threats and
opportunities.
+Good tool to qualify the factors related to
company’s strategy.
+Can consider many factors for each special
case.
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11. *
-It doesn’t show the interaction between the
factors.
-It can’t reflect the dynamic environment.
-It’s a subjective analysis tool.
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15. *
Trends
Probability
of
Occurrences
Impact on strategies
S1 S2 S3
T1
T2
.
.
+2 Extremely favorable impact
+1 Moderately favorable impact
0 No impact
-1 Moderately unfavorable impact
-2 Extremely unfavorable impact
Degree of quality
of impact on each
trend on different
strategies
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18. *
•Sales of Passenger Cars in India is likely to grow at an
average of 14.9% each year to touch the 2.1 million mark
by 2011 (Source: Frost n Sullivan)
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20. S.
No.
Environmental Factors Opportunity
/Threat
Reasons/Remarks
1. Macro-Economic Factors
-Per capita Income
-Loans Availability
- Interest Rates
↑
↓
↑
Rising PCI means more
affordability. (Sixth Pay
Commission)
Banks are not sceptical in giving
loans.
People can’t pay easy
instalments
2. Social/ Demographics
Factors
-Urbanization
( 28% to 40% by 2020 )
Middle Class Increasing
-Penetration Levels
-Labor (JV’s)
-Growing Working Class
(Ex. BPO)
-Improving Public Transport
↑
↑
↑
↑
↓
Demand for Passenger cars
Sales are increasing at a YOY of
over 60 % in the long run.
LOW (10 per 1000)
India has one of the cheapest
labour available hence many
foreign companies are eyeing to
merge with Indian players.
Resulted in more no of cabs.
With an advent of projects like
Delhi Metro .
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S.
No
.
Environmental Factors Opportunity
/Threat
Reasons/Remarks
3. Policy
-Import Duty
-Excise Duties
-FDI
-Regulatory Issues like
Acts, Safety Standards etc.
↑
↑
↑
↓
Currently import duty is
100%.
Excise duty has been
reduced from 16 %to 14%.
100 % FDI is allowed .
MVA 1988 and MVR 1989
which promotes use capital
intensive technology
4. Technology
-Emission Standards
-Hybrid Cars
-Fuels
-IT (CAD/CAM, Design and
Automation)
↓
↑
↑
↑
Bharat III resulting in
dependence on other
countries for technology
Excise duty has been
reduced from 24 % to 12 %.
With upcoming Bio- fuels
,LPG & CNG.
India has one of the
cheapest IT Resources.
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S.
No.
Environmental Factors Opportunity
/Threat
Reasons/Remarks
5. Industrial Factors
-Raw material price
↓ Steel Prices have touched
Rs 5000 since May 2010
6. Business Environment
-ROCE
-Expansion Plans of Incumbent
players
↓
↓
With players like Hyundai and
TATA having ROCE of 9% and
32%.
In future has huge capacity
plans which will give the
incumbent companies a cost
advantage.