Enviornmental analysis
Transcript of Enviornmental analysis
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ENVIORNMENTAL ANALYSIS
Submitted By:
VISHNU S
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Business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations.
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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. The analysis entails assessing the level of threat or opportunity the factors might present. These evaluations are later translated into the decision-making process. The analysis helps align strategies with the firm’s environment.
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Types of Environmental Analysis
PESTEL
STEEPLED Analysis
SWOT Analysis
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PESTEL Analysis
Political Factors
Economic Factors
Social Factors
Technological Factors
Environmental Factors
Legal Factors
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Political Factors
• Pressure Groups & Lobbying • International Wars• Internal Conflict• Government Term
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Economic Factors
• Interest Rate• Exchange Rate• Taxation• Availability of Credit Facilities• International Trade• Fiscal and Monetary Policies• Per Capita Income• Business Cycles• Level of Unemployment
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Social Factors
• Media views• Tradition• Values & Norms• Attitudes & Opinions• Lifestyle• Religious beliefs
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Technological Factors
• Technology maturity• Energy• Research & Development • Communication Systems• Manufacturing Capacity
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Environmental Factors
• Climate • Clean Energy• Pollution • Green Branding Issues• Waste Disposal• Recycling
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Legal Factors
• Employment Law• Health and Safety Law• Competition Law• Regional Legislation• Investment Law
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STEEPLED Analysis
• Social Factors• Technological Factors• Economic Factors• Environmental (Ecological) Factors• Political Factors• Legal Factors• Ethical Factors• Demographic Factors
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Evolution of STEEPLED Analysis
•Political•Economic•Social•Technological
PEST
•Social•Technological•Economic•Environmental
•Political
STEEP•Political•Economic•Social•Technological•Legal•Environmental
PESTLE
•Political•Economic•Social•Technological•Environmental
•Legal•Industry
PESTELI
•Social•Technological•Economic•Environmental
•Political•Legal•Ethical•DemographicSTEEPL
ED
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Ethical Factors
• Responsibility to Host Community• Good Faith• Universal Rules
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Demographic Factors
• Educational Levels• Age Distribution• Number of People Within Working Age Group• Net Inward Migration
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SWOT Analysis
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Strengths are positive attributes in the internal factor of your business.
Weaknesses are negative factors in your business that needs to be improved.
Opportunities are external positive factors which predicts the prosperity of your business.
Threats are external negative factors that may affect your business.
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Businesses can make use of SWOT analysis to know high performing areas, explore new initiatives, make smarter decisions, identify the areas of improvement, know the opportunities and foresee the challenges.
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Knowing the strength & areas of improvement, grabbing the opportunities and facing the challenges are essential factors to be considered in a business decision making process.
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THANK YOU!