External environment

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External environment by Mind Map: External environment

1. Threats

2. Opportunities

3. General Environment

3.1. Demographic Sector

3.1.1. Population size

3.1.2. Age structure

3.1.3. Geographic distribution

3.1.4. Ethnic mix

3.1.5. Income distribution

3.2. Economic Sector

3.2.1. The nature and direction of the economy in which a firm competes or may compete. a.Gross National Product (GNP) b. Interest rates c. Inflation/Deflation d. Foreign exchange rates e. Trade balances

3.3. Political/Legal Sector

3.3.1. Business practices

3.4. Sociocultural Sector

3.4.1. Society’s attitudes and cultural values

3.5. Technological Sector

3.5.1. New outputs, products, processes, and materials

3.6. Global Sector

3.6.1. New or existing global markets

3.7. Physical Sector

3.7.1. Laws and regulations guiding interaction among companies

4. External Environment Analysis

4.1. Scanning

4.1.1. Identifying early signals of environmental changes and trends

4.2. Monitoring

4.2.1. Detecting meaning through ongoing observations of environmental changes and trends

4.3. Forecasting

4.3.1. Developing projections of anticipated outcomes based on monitored changes and trends

4.4. Assessing

4.4.1. Determining the timing and importance of environmental changes and trends for firms’ strategies and their management

5. Competitor Environment

5.1. Competitor intelligence

5.1.1. Future objectives

5.1.2. Current strategy

5.1.3. Assumptions

5.1.4. Capabilities

6. Industry environment

6.1. Key factors which can influence the firm :

6.1.1. Threat of new entrants Economies of scale Product differentiation Capital requirements Switching costs Access to distribution channels Cost disadvantage independent of scale Government policy

6.1.2. Bargaining power of suppliers Increasing prices and reducing the quality of their products

6.1.3. Bargaining power of buyers For higher quality, greater levels of service, and lower prices

6.1.4. Threat of substitute products Perform similar or the same functions as your product

6.1.5. Intensity of rivalry among competitors A firm is challenged by a competitor’s actions