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. The importance of Environmental Analysis lies in its usefulness for evaluating the present strategy, setting strategic objectives and formulating strategies. The political environment can affect organizations. Political components influence buyer certainty and purchaser and business spending. Stability of political environment is essential for organizations As American and European markets mature, Asia is turning out to be progressively appealing to businesses, particularly to e-business firms that flourish with global and scalable business models. Yet, barring markets like Japan, most global e-commerce players like Amazon, eBay and Expedia have yet to find in Asia the kind of success that they have enjoyed in their home markets. While late entry and local regulations partly explain their low market share in the region, these firms also face unique challenges in Asia due to diverse cultures, multiple languages and poor infrastructure. Given the rising significance of the Asian market, interest in the territory would seem be a consistent step. But, it’s important not to forget that the international playing field, in respect of Intellectual Property, is exceptionally dynamic and competitive. Intellectual property laws, principles and best practices can vary tremendously from nation to nation and subject to almost constant change, particularly in the rapidly developing Asian market. In order to be distinctive and successful, therefore, it’s imperative that company’s strategy has been specifically tailored to the Asian market based on environmental
Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
A strategic analysis provides an examination of both the internal and external factors impacting on the organisation (Papulova & Gazova, 2016). City
Generally, strategic management is a set of managerial decisions and actions that determines the long-term performance of a company, involving both internal and external environmental scanning, strategy formulation, strategy implementation, and evaluation and control. According to the study of strategic management, the corporation should concentrate on monitoring and appraising outside opportunities and threats based on an organization’s strengths and weaknesses (Thomas Wheelen and David Hunger, 2012).
This is a crucial part of a strategic analysis because ‘…organisations do not exist in a vacuum, they are part of a complex world’ (Bowman 1987:61) and many factors can influence operations, beneficially and unfavourably. However, these can be difficult to comprehend due to their complexity, diversity and fast changing nature. Necessarily a number of techniques have been developed to facilitate the process and to ‘…contribute to answering the key managerial question…’of what ‘…opportunities and threats might arise in the future’ (Johnson & Scholes 2002:99).
A little more than 10 years ago, China’s path to e-commerce leadership would have been difficult to foresee, even as the tech boom in the US and other markets saw the development of e-commerce as an important B2C and C2C channel.
According to Wheelen & Hunger, strategic management “is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control” (2004, p2). All eleven good to great companies are benefit from strategic management and gain long term strategic advantage then lead to outperforming compared companies.
Environmental analysis is integral to understanding how the organization operates within the organization itself, within the industry and within the macroeconomic environment. For this analysis, the subject organization will be IKEA. “IKEA Group is one of the world’s largest privately owned companies, engaged in the retail of flat-packed home furniture and other house wares. Operating over 150 large-scale stores in over 30 countries, and with a mail order division, IKEA sells a range of furniture, which is made by over 2,000 suppliers in more than 55 countries. The company is headquartered in Helsingborg, Sweden”.
Environment is another significant factor that affects the strategic plan. When a major environmental disaster occurs, such as a hurricane, it can affect a company’s production facilities, their sales facilities and the community that the company serves.
Nowadays, the sustainability is the topical issue, which is the development that meets the needs of the present without compromising the ability of future generations to meet their own need. In the business process, the companies will product toxic gas or the other toxic substances influence environment or biodiversity, it will influence the ecological cycle and their live. The water and their food will influence more, because in our life we need water and food to stain life, which is the necessity for human and the
The Coca Cola Company has been among the world’s top companies that have been able to perform well in all the areas of the world. The company follows the latest strategic research and evaluation methods to formulate such strategic policies that helps in not only meeting the customer expectations and desires but also achieving various organizational goals and objectives.
Intellectual property resembles brick-and-mortar businesses and in the world of e-business, laws and principles govern IP just as in traditional business. Among all intellectual property, domain names are unique to doing e-business and are functionally different from trademarks (Simensky, Bryer & Wilkof, 1999). Although intellectual property may be globally used in e-business, they are subject to laws the country in which the e-business operates. There are however, some basic global trademark law principles and use of domain names as required by the Internet Corporation for Assig...
Environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization (Barnat, 2004). For a business to succeed, it is important to study the business environment of the firm that consists external and internal influences that affect the firm’s decisions and performance (Grant, 2010). Environmental scanning includes the assessment of Macro and Micro environmental analysis.
Politics makes rules and regulation regarding industries, businesses and everything else. A positive political situation motivates the industry while the opposite hampers the industry.
The role of the State is still crucial to twenty-first century environmental policy making. The State through its various different organizations is involved in implementing policies related to the direct and active manipulation of the environment (Wilson, 1997). The State devises a set of rules governing the access and withdrawals of the resource stock (Grafton, 2000). For example, forest officials, such as the Forestry Commission in the United Kingdom directly manages and exploits state owned forests. The State’s indirect environmental management policy role is often considered the most important. The distinctive feature of the State is that it has control through coercion in a given territory. Through the perspective of environmental management policies, this is important as the State is lawfully in a -position to force non-State environmental managers in the pursuit of its own policy and environmental outlook (Wilson, 1997). State policies designed to regulate logging on private and publicly owned land are enforced through legal acts and contravention of these regulations could lead to prosecution. These official policies require non-State environmental managers to alter their practices in line with rules set by the state (Wilson, 1997; UK Forestry Standard, 2011). Therefore, State environmental management policies are designed to control the environmental management practices of other groups associated with taking from and adding to the environment. The uniqueness of the State’s policy making role is that it holds great responsibility for the promotion of the common good for all within the national territory and has the authority to fulfil this. Consequently the State plays an enormous role in environmental policy making. Alt...
Environmental factors cater for the protection of the environment. A business must carefully be able to look at its surroundings to see for benefits and ensure that its daily production does not interfere with society.