MNG3701 - Strategi c planning actual solution
Importance of Analyzing the External Environment - answer -Managers can mitigate
threats.
-Managers can leverage opportunities.
-Gain understanding of potential impacts. -Understand the source / proximity of factors.
The PESTEL Model - answer -Groups environmental factors into six segments:
--Political
--Economic
--Sociocultural
--Technological
--Ecological
--Legal These factors can create:
--Opportunities
--Threats
Political Factors - answer -Processes & actions
of government bodies -Firms can shape this factor through:
--Lobbying
--Public Relations
--Contributions
--Litigation
Example: Tesla
-Has a build-to-order sales model
-Cuts out dealers
-Dealers are lobbying for new legislation
Economic Factors - answer -Largely macro-
economic
Examples include: --Growth rates
--Levels of employment
--Interest rates
--Price stability --Currency exchange rates
Sociocultural Factors - answer Society's cultures, norms, and values
-Are constantly in flux
-Differ across groups
Demographic trends
-Present opportunities and threats
-Population characteristics related to age, gender, family size, ethnicity, sexual orientation, religion, and socioeconomic class
Technological Factors - answer Application of knowledge
-To create new processes
Importance of Analyzing the External Environment - answer -Managers can mitigate
threats.
-Managers can leverage opportunities.
-Gain understanding of potential impacts. -Understand the source / proximity of factors.
The PESTEL Model - answer -Groups environmental factors into six segments:
--Political
--Economic
--Sociocultural
--Technological
--Ecological
--Legal These factors can create:
--Opportunities
--Threats
Political Factors - answer -Processes & actions
of government bodies -Firms can shape this factor through:
--Lobbying
--Public Relations
--Contributions
--Litigation
Example: Tesla
-Has a build-to-order sales model
-Cuts out dealers
-Dealers are lobbying for new legislation
Economic Factors - answer -Largely macro-
economic
Examples include: --Growth rates
--Levels of employment
--Interest rates
--Price stability --Currency exchange rates
Sociocultural Factors - answer Society's cultures, norms, and values
-Are constantly in flux
-Differ across groups
Demographic trends
-Present opportunities and threats
-Population characteristics related to age, gender, family size, ethnicity, sexual orientation, religion, and socioeconomic class
Technological Factors - answer Application of knowledge
-To create new processes
