You are in the business of running a fast food chain. Mc Donald's and Pizza hut are setting up their outlets in your town, threatening your business. Discuss steps you would take by doing enviornmental analysis

1. ABIJITH JOHNSON
S2 MBA (2021-23)
Mar Athanasios College For Advanced Studies Tiruvalla (MACFAST)
Kerala, India
www.macfast.org

2. • Environmental analysis is a strategic tool, It is a process to
identify all the external and internal elements, which can affect
the organization’s performance. The analysis entails assessing
the level of threat or opportunity the factors might present.
These evaluations are later translated into the decision-making
process. The analysis helps align strategies with the firm’s
environment.
• Environmental analysis is relatively qualitative and involves
the identification of and analysis of environmental variables,
which affect the business. Some frameworks of environmental

3. • SWOT analysis is a framework for identifying and
analyzing an organization's strengths, weaknesses,
opportunities and threats. These words make up the
SWOT acronym. The primary goal of SWOT analysis
is to increase awareness of the factors that go into
making a business decision or establishing a business
strategy
• Elements of a SWOT analysis are as follows:
1. STRENGTH
What do you do well? unique resources can you draw on?

4. 2. WEAKNESS
What could you improve? Where do you have fewer
resources than others? What are others likely to see as
weaknesses?
3. OPPORTUNITY
What opportunities are open to you? What trends could
you take advantage of? How can you turn your
strengths into opportunities?
4. THREAT
What threats could harm you? What is your

5. • A PESTEL analysis is a framework or tool used by
marketers to analyze and monitor the macro-
environmental (external marketing environment)
factors that have an impact on an organization,
company, or industry.
POLITICAL
Political factors include elements such as tax policies,
changes in trade restrictions and tariffs, and the stability
of governments.
ECONOMIC
Economic factors include elements such as interest rates,
inflation rates, gross domestic product, unemployment
rates, levels of disposable income, and the general growth

6. SOCIAL
Social factors include trends in demographics such as population
size, age, and ethnic mix, as well as cultural trends such as
attitudes toward obesity and consumer activism.
TECHNOLOGICAL
Technological factors include, for example, changes in the rate of
new product development, increases in automation, and
advancements in service industry delivery.
ENVIORNMENTAL
Environmental factors include, for example, natural disasters and
weather patterns.
LEGAL

7. In order to beat the threat, Identify the Weaknesses
of Your Competitors.
• Determine the strength’s and weaknesses of competitor through an
exhaustive and critical examination of his literature, his products
and services.
• The most effective way to evaluate a competitive service is to pose as
a customer.
• You can also talk with the customers and suppliers of your
competitor.
• Fish out important information such as defects in and
dissatisfactions with what your competitor sells or makes.

8. Determine Your Vulnerable Spots.
• A careful examination of your competitor’s product and
methods can help you determine your own soft spots —
those points at which you are vulnerable. Knowing
your weak points will force you to seek out ways to
improve them or compensate for them.
• Understanding your weaknesses can point the way
toward what will be unique about your business, and
help you target what will benefit your customer.

9. • Know What Makes Your Customers Buy.
Frequently, a customer fails to buy because a business
neglects to mention the one consideration that
weighs heavily with her or him. It is not always easy
to figure out what the factor is .
• Learn from the Mistakes of Others.
Every businessperson should learn from his or her
mistakes, but you can also learn from the mistakes your
competitor makes.

10. Be on a Lookout for Good Ideas.
• Good ideas are everywhere, if you know where to look.
If it is true that you can learn from a competitor’s
mistakes, it is equally true that you can cash in on a
rival’s successes.
• This does not mean you should be blindly imitative. It
does mean that you ought to be alert to ideas that can
stimulate your own thinking.

11. THAN
KYOU