An effective environmental analysis can have a major impact on the strategic plan for a business.
These factors are largely outside your direct control, but you can adapt your business and marketing strategy to take advantage of the opportunities they present while minimizing the potential threats. Political Political factors refer to governmental actions or policies that have an impact on your business and its ability to trade.
For example, restrictions on the import or export of certain goods might limit your market or hamper your ability to obtain raw materials.
At a local level, restrictions on the types of businesses permitted in certain districts or the kinds of services available might impact your ability to run your business in these areas.
Economic Social The way society changes and adapts over time, and the differences in communities across the country and the world, are all important considerations when planning your business.
Aspects to consider and explore include religion, lifestyle expectations, housing standards and population demographics such as age, gender and ethnic origin.
Technological Technological change has wiped out old businesses and created new businesses over the years. Understanding the impact of the next technological advances could give you a market advantage over your competitors if you are better placed to exploit the opportunities they present.
Look at how communications are changing, and try to find a way in which you can take advantage of any emerging channels to reach new or more customers. Don't forget to explore how your business could be more efficient and productive by using new technologies in production or distribution, for example.
Legal Every business operates within a strictly controlled legal environment. Identify, and be aware of the impact of, all legislation relating to your business. Environmental Economies across the world are increasingly aware of the environmental factors of their operations.
Even as a small business owner, you should consider the environmental aspects relating to your activities, such as its impact on the local and wider environment.
Be aware that attitudes to themes such as ecology and renewable energy can affect consumer behavior. Some believe global warming is changing weather patterns, affecting tourism and farming.
Showing that you are a "green" business might attract new customers. Opportunities and Threats Your PESTLE analysis should provide you with a useful tool to establish the major opportunities and threats facing your business as you plan for its future growth.
When taken together with an internal review of your business' strengths and weaknesses, you should be in a strong position to develop a robust strategy and business plan based on well-balanced research. Economic factors include all the various taxes and duties you are obliged to pay, as well as wider fiscal decisions on things like central bank interest rates and international exchange rate volatility.
A thorough analysis of each of the economic factors that impact on your business will help you plan the financial strategy for your business.Environmental economics; Involves planning the requirements development process, with a major in either Business Analysis, Process Management or Business.
The environmental analysis then influences corporate planning and policy decisions. This environmental analysis is a three-step process in which a company first identifies environmental factors that . Jun 30, · Preparing a marketing environmental analysis is an essential step in understanding the external local, national or international forces that might affect your small business.
Mar 12, · Interplay Between Environmental Analysis and Environmental Analysis is the process by which on business. STRATEGIC PLANNING IN THE. Environmental business analysis is a catchall term given to the systematic process by which environmental factors in a business are identified, their impact is assessed and a strategy is developed.
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.