Understanding the External Environment

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CPA Program Global Strategy and Leadership Module 2: Understanding the external environment cpaaustralia.com.au Edition 14a Published by Deakin University, Geelong, Victoria 3217 on behalf of CPA Australia Ltd, ABN 64 008 392 452 First published July 2010, reprinted January 2011, updated July 2011, January 2012 Reprinted with amendments July 2012, January 2013, revised edition July 2013, updated January 2014 © CPA Australia Ltd 2014. This is an electronic version of the printed study material. Apart from any fair dealing (e.g. for the purposes of private study) as permitted under the Copyright Act 1968 (Cwlth), no part of this material may be copied, scanned, transmitted, distributed or reproduced in part or in whole…show more content…
Each category of internal and external influences is illustrated in Figure 2.1 (referred to as ‘the framework’), including the outputs of the organisation—the product or service through a range of distribution channels to the end customer. Figure 2.1 Framework for strategy analysis External business drivers Political, regulatory and legal environment, market characteristics, competition, substitutes, demand for services, increasing complexity etc. EXTERNAL INFLUENCES INTERNAL INFLUENCES Markets/ Industries PESTEL Stakeholders Core activities Internal and external Products/ Services Channels Customers BCG matrix Porter’s five forces SWOT Competitive positioning matrix Operational and people drivers Blue oceans Source: KPMG (2013). Module 2 focuses on the external environment within which the organisation operates and how that affects the formulation and evaluation of strategy for an organisation. This module provides tools for strategic analysis of the external operating environment of the organisation. The major topics covered in this module are as follows: n defining an industry; n the key issues to be considered that might affect the industry; and n integrating the expected impacts on strategy of these complex issues, many of which are
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