Environmental Analysis : San Joaquin Valley College

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.

3. The government has many affects on the economic activity by regulation, trade agreements, and subsidies. Adopting different forms of regulation is healthy to push businesses to a certain standard but have unintended consequences. For example, having a regulation in a workplace that a certain amount of workers have to be ethnically diverse could force businesses to hire unfavorable candidates only to comply with a

Organizations are required to fully understand their changing business environment to help them act with relevant strategies. Macro-environmental analysis is one of the most essential tools used in this case. The analysis includes different aspects, including political, social, economic, technological and environmental aspects.

Analyze the external environment. The next step is to identify environmental opportunities and threats. Here you should apply all information you have

When considering how to pay employees, a business must factor in the legal requirements of pay placed by the government. Government regulations affect pay by implementing the equal employment opportunity, minimum wage, overtime pay, and

Again, the results of a firm’s environmental analysis will help management to respond to changing conditions in the environment. For example, if the firm’s competitors use their environmental analyses to be ready for regulatory changes, but management ignore the same, then the firm will be disadvantaged. The analysis must be effective in gauging all the key elements that is suspected to impact the firm’s operations and which attempts to forecast how future actions will affect the firm’s business

Political factors – These factors determine to what extent the government may influence the economy or certain industries for example the remove of some regulations can cause some advantages or disadvantages to an organisation. Political stability, tax policies, foreign trade regulation or proper security, for example every organisation needs political stability to be able to operate smoothly.

This essay is based on the Premium Oil and Gas Company (POG) case study. POG, as a global, company is functioning in diversified business environment. It causes in fact, a necessity to deal with varied internal and external environmental issues, that occur within the company. Internal business environmental issues are in control of the enterprise. External business environmental issues, on the other hand, are driven by factors, that are beyond the control of the company (e.g. legal issues).

4. To find out how the strength of the company’s competitive forces are congruent with the industry’s through the five-forces model of industry competition.

Environmental analysis is a process for identifying all external and internal elements that can affect the performance of the organization and evaluating the level of threat or opportunity they present. Opportunity and threat assessments are then incorporated into decision making process in order to better align strategies with the organizations environment (Investor Words, 2015). Every destination needs to know about their strengths, weaknesses, opportunities and threats.

An organization 's external environment has three components: the remote environment, the industry environment, and the operating environment. The Remote environment is made up of economic, political, social, technological, and ecological factors. The industry environment is made up of entry barriers, supplier power, buyer power, substitute availability, and competitive rivalry. The operating environment is made up of competitors, customers, labor, and suppliers.

There are both internal and external environmental factors that affect a business’s long term objectives and strategies. A learn must understand these components in order to ensure success and sustainability. The following essay will discuss how these factors influence or impact a business.

This book is based on the environmental issues which help the managers decide on the strategic decisions that are both economically successful and delicate to the natural enviroment. It will help managers to know about the current global and public issues which particularly relate to the economic activities but the businesses. There are scientific, social and economic concepts being introduced, which can be co related to sensitive environmental issues. This can help achieve a long term economic success within the limits of the ecosystem.

Environmental analysis- it is evaluation of the possible effects of external forces and conditions on an organization’s survival and growth strategies.

There is a close and continuous interaction between the business and its environment. This interaction helps in strengthening the business firm and using its resources more effectively. As stated above, the business environment is multifaceted, complex, and dynamic in nature and has a far-reaching impact on the survival and growth of the business. To be more specific, proper understanding of the social, political, legal and economic environment helps the business in the following ways: (a) Determining Opportunities and Threats: The interaction between the business and its environment would identify opportunities for and threats to the business. It helps the business enterprises for meeting the challenges successfully. (b) Giving Direction for Growth: The interaction with the environment leads to opening up new frontiers of growth for the business firms. It enables the business to identify the areas for growth and expansion of their activities. (c) Continuous Learning: Environmental analysis makes the task of managers easier in dealing with business