Strategic mgt External Business Environment

1. Environment & PEST Analysis:
An Approach to External Business
Environment
 Author -Abhishek Gupta- Administrative-cum-Accounts Officer &
Head of Office, Sardar Swaran Singh National Institute of Renewable
Energy (Ministry of New & Renewable Energy, Govt. of India)-
(Punjab)
 Journal Name-International Journal of Modern Social Sciences.
 Journal homepage:
www.ModernScientificPress.com/Journals/IJMSS.aspx
 Article history: Received 8 April 2013, Received in revised form 28
May, Accepted 29 May 2013, Published 30 May 2013.
ISSN: 2169-9917
STRATEGIC MANAGEMENT

2.  Environmental management-environmental planning, protection, monitoring,
assessment, research, education, conservation and sustainable use of resources.
 Environmental factors must be considered in the long-term goal of making
industrial development .
 Discussion of Environmental Analysis in the strategic management process of
organization.
 Strategic planning – feasibility –Impacts of factors.
 The strategic planning of business includes -functional subdivisions –
-Strategic Planning
-Human Resource Management
-Strategic Human Resource Planning
 In strategic planning, it can use different analytical methods and techniques that
one of them is PEST analysis. This paper introduces how to apply it in a new
manner.
STRATEGIC MANAGEMENT

3. INTRODUCTION
 External environment-
-components of all outside factors
-influences the impacts of operations of business.
-Consists ~Micro and Macro.
 There are various factors need to be considered under approaches of
external environment.
>Environment Analysis: Threats & Opportunities.
>Environmental Forecasting .
>PEST Analysis
>Industries: Global Competition.
>Environmental Uncertainty.
>The General Environment .

4. FACTORS
Opportunities and
Threats
Environmental
Forecasting
PEST Analysis
 Opportunities:
changes within the
market, customer
lifestyle, advances in
new technology, new
production method.
 Threats: supply cost
increases, new
technology, govt
regulations,
demographic alter,
changes in consumer
behavior.
 Scanning to detect
warning signals.
 Monitoring trends.
 Forecasting future
changes.
 Assessing the changes
for organizational
implications.
 Political factors -
political climate, &
industrial policies.
 Economical factors-
interest rates, exchange
rates, economic growth.
 Social factors -effects
of demographic
patterns, taste &
preferences.
 Technological
factors –upgrading
technology.

5. FACTORS
Global
competition
Environmental
Uncertainty
The General
Environmental
 Economic
performances.
 Global innovations.
 Global performances.
 R&D.
 Education trends.
 Global markets
 Threat to a strategic
manager.
 Scenario planning is
used to analyze the
environmental
uncertainty.
 It turns the planning
into learning process
rather than resulting
plans.
 Components-
Economic, Social,
Technological,
Political.
 The fluctuations of
local, national, world
economies.
 Underdeveloped
nations population,
low std of education,
lack of transportation.
 In developing nations
Increased GDP, low
wages.

6.  PEST Analysis – Tool - understanding market growth or
decline.
 It gives- a position, potential and direction -business.
 A PEST analysis is a business measurement tool.
 This research dealt –Importance of PEST in Strategic
Management.
 Journal briefs out on -Environmental analysis, global
environmental dimensions, environmental forecasting, risk
and uncertainty in business strategic management.
CONCLUSION

7. REFERENCE
 Frederic P Miller, Agnes F Vandome, John McBrewster, (2011). Pest Analysis, VDM
Publishing.
 Babette E. Bensoussan, Craig S. Fleisher, (2008). Analysis Without Paralysis:10 Tools to
Make Better Strategic Decisions, 1st edition, FT Press.
 Michel Robert, (2006). The New Strategic Thinking: Pure & Simple, McGraw-Hill.
 Kenichi Ohmae, (2002). The Mind of the Strategist, Tata McGraw-Hill Education.
 Kenichi Ohmae, Nicholas Brealey, (2000). The Invisible Continent: Four Strategic
Imperatives of the New Economy, 1st edition, HarperBusiness.
 Edmund B. Fitzgerald, (2000). Globalizing Customer Solutions: the Enlightened
Confluence of Technology, Innovation, Trade, and Investment, Greenwood Publishing
Group.
 Robert C. Megantz, (2002). Technology Management: Developing and Implementing
Effective Licensing Programs, 2nd Edition, Wiley.
 W. Teignmouth Shore, (2010). The Pest, BiblioBazaar, USA.
 Markus Slamanig, (2012). PEST Analysis Hungary: Country Evaluation and Selection of
Hungary, 1st edition, GRIN Verlag.

8. BY
PRIYA.H
PRIYANKA.K
(1ST MCOM-2016)
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