The Impact Of External Forces On The Environment

920 WordsSep 15, 20154 Pages
When manipulating a business’s strategies it is important to focus on the external factors in the environment. An external analysis is where a business conducts environmental scanning that present a company with the key external forces influencing the organization. The facets of external forces examined are the business environment, remote environment, or the competitive environment. A business environment is all of the external factors in the general environment that a firm cannot control, but can affect their strategy. The remote environment is the forces that affect most firms. Lastly, a competitive environment is the firm’s specific industry and its entirety. The external analysis is pertinent to a company called Dick’s Drive- In; without it, Dick’s would not be a thriving popular business today. Dick’s Drive-In uses the facets of external forces to market their focus on being a part of Seattle’s community. In a Forbes article written by Julie Pham’s called, Dick’s Drive-In Scores Extra Business with Seahawks’ Wins, Dick’s Drive-In has benefitted from external analysis since it was founded by Dick Spady in 1954. Julie states, “Back then, he sold his burgers for 19 cents while the burgers at his competitors were going for 30 cents,” (Pham, 3). Dick Spady based his pricing on the competitive environment of Seattle and cut his prices by nearly thirty percent in relation to his rivals. Their competitive pricing still holds true today as Julie exclaims, “ Seahawks game
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