The Situation Analysis Is A Systematic Collection And Evaluation Of Past And Present Economical, Political, Social, Essay

It is of great importance to make an analysis of the environment in which an organisation operates in order to develop and implement a suitable, successful strategy for the company. According to Johnson, Scholes and Whittington (2008) the business environment of a company is an important issue determining its survival and success. There are several layers of this business environment – the macro environment, the industry or sector layer, the layer with competitors and markets.

External environmental factors are the macro environment affecting a business; they are factors outside the company and which they have no control over (Kotler & Armstrong, n.d.) these external factors bring about impacts to the company thus a company should always be prepared to react.

The situational analysis attempts to address the question ‘where is the organization now?’ The situational analysis contains a vast amount of information and, as the term indicates, is an analysis of the situation that you are facing with the proposed product or service (Hollensen, S. (2003) Marketing Management: a relationship approach, p.652). Alexander Berger -Marketing Strategy-1-

The importance of the analysis determines what outer factors that mold or influence management’s future strategic decisions. Accordingly, the general environment analysis incorporates several divisions, such as the economic circumstances, political/legal effects, socio-cultural powers, technological dynamics, and physical conditions (Gamble, Thompson, Peteraf, 2015). Most importantly, each segment will be centered on what significant areas that are correlated to the bed and mattress

The General Environment is defined in the textbook as, the economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations. The economic component of a firm’s general environment refers to the growing or shrinking of the economy. Target, as any other retail company is

The environment in which a company finds itself has been a factor in a firm’s strategy, because of access to raw materials. The environment in which a company operates can make and break the company at the same time. Environmental factors are evaluated on the footprint left behind by a firm on its respective surroundings. It is important that every individual or management considers the environment in which they intend to set up a business.

A firms external environment is divided into two composites: the general environment and the industry environment. Fahey (1999) states that the general environment encompasses the broader society that influences an industry and the firms within it. The industry environment is the set of factors that directly influences a firm and its competitive actions and responses (Chen et al. 2010). Identifying opportunities and threats is an important objective of studying the general environment. Opportunities help companies achieve strategic competitiveness whilst threats may hinder a company's efforts to achieve strategic competitiveness (Gilad 2011). A firm will scan, monitor, forecast and assess the seven segments of the general environment to determine their effects on the firm. Firms identify early signals, detect meaning,develop projections, and determine the timing and importance of environmental changes and trends for firms' strategies and their management.

The general environment is composed of segments that are external to the firm. Although the degree of impact varies, these environmental segments affect all industries and firms competing in them. The

In this term of our discussion we’re talking about business environment. It’s like an overview of the whole business environment. Simply environment of a business means the external forces including the business decisions. They can be forces of economic, social, political and technological factors.

The aim of this document is to conduct a literature study on How the External Environment Impacts a Specific Business. In the following section, Micro Environment will be discussed under the following headings. Demographic environment is first discussed, followed by the Economic environment, Natural environment, Technological environment, Political environment, Cultural environment and lastly, Micro environment (Firm/Suppliers/intermediaries/Customers/Competitors /Customer/Competitors/Public) is discussed.

An analysis of the external environment includes the factors in a business’s external environment about a business's industry, competition, and political and social environments, and affects the firm’s strategy (Aaker, 2001).

“Environmental challenges refer to forces external to the firm that are largely beyond management’s control but influence organizational performance. They include: rapid change, the internet revolution, workforce diversity, globalization, legislation, evolving work and family roles, and skill shortages and the rise of the service sector” (Solution Wand, 2011, Environmental Challenges of an Organization, ¶1).

 Internal/external – the environment is both inside and outside organisations. Internal: „controllable‟ | External: „uncontrollable‟

Business environment is the sum total of all factors internal & external to the business firm that greatly influence their functioning It covers factors and forces like customers, competitors, suppliers, government, and the social, cultural, political, technological and legal conditions The changes in business

To establish whether JKB is competitively positioned to tackle the evolving and increasing challenging business environment hence recommend the way forward, a situation analysis must be conducted. This analysis aids in collecting essential information about the organization internal and external factors. Keen interest should be placed on these factors since they have the capability of adversely affecting an organization; they can create or on the other diminish, or altogether destroy the chances of an organization attaining competitive advantage.