Industry and External Environment Analysis

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Introduction

Companies always operate in a certain environment; the formulation and implementation of business strategy are also restricted by the particular environmental factors. (Osborn & Hunt 1974) In other words, environment decides the enterprises’ strategy, decisions making, organizational structure and management styles. The environmental awareness has become the starting point of the environment analysis. (Sethi 1979) In general, the corporate strategy has two environment factors to consider, internal and external environments. Furthermore, because the influence degrees are different, the outside environments divide into the macro environment and industry environment. The productivity and operation of modern enterprises have been increasing impact from the external environment. (Osborn & Hunt 1974)

The strategic management for the organization need has an overall and objectives analysis about the change of the external environment, based the research result to set up the organizational goals and strategy plans. The enterprise and its external operation conditions are in an interaction and interrelated relationship.(Osborn & Hunt 1974) The purpose of study on the peripheral environment is supporting a chance to the organizations to finger out the possible developing opportunity and potential threat, use them to be the conditions and limitations to develop the business strategy. (Sethi 1979)

There have a close contact between business and environment. On the one hand, the environment is the basis for enterprise survival, the elements the business needs all obtained from the external environments, such as human resource, materials, energy, capital, technology, information, etc. Meanwhile, the company's products must be ma...

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...Competitive Forces that Shape Strategy, Harvard Business Review, vol. 86, no. 1, pp. 78-93.

Sethi, S 1979, A Conceptual Framework for Environmental Analysis of Social Issues and Evaluation of Business Response Patterns, Academy of Management Review, vol. 4, no. 1, pp. 63-74.

Seven Network Limited, 2004, DCITA Multi-channelling Review, Retrieved August 18, 2011. From http://www.dbcde.gov.au/__data/assets/pdf_file/0015/13191/Seven_Network_Ltd.pdf

The Gale Group, 2011, Cable and Other Pay Television Services, Retrieved August 18, 2011. From http://business.highbeam.com/industry-reports/transportation/cable-other-pay-television-services

Williams, K 2002, Subscription Television in Australia, Retrieved August 18, 2011. From http://www.accc.gov.au/content/item.phtml?itemId=259730&nodeId=7714aec46569de9f04fe41d5787ac203&fn=Session+5+-+Mr+Kim+Williams.pdf

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