CHAPTER 1 – BUSINESS ENVIRONMENTS
1) MACRO ENVIRONMENT
No control over but must design strategies to adapt to situations in the external
environment. The business needs to eliminate any threats and capitalize on opportunities
Tools used:
Environmental Scan
O + T of SWOT
PEESTLE SO WHAT + HOW TO…
1) Environmental Scan
To identify factors that may have an impact on the business, then adjusting existing plans to
deal with these factors
2) PEESTLE ANALYSIS
SO WHAT + HOW TO…
Political Factors
Environmental Economic
Factors Factors
PESTLE
Analysi
s
Legal Factors Ethical Factors
Technoloigcal
factors Social Factors
, 2) MARKET ENVIRONMENT
Any place where goods and services are bought and sold
Tools used:
Environmental Scan
O + T of SWOT
PORTERS 6 Forces
SO WHAT + HOW TO…
1) Porters 6 Forces
The 6 Forces
SO WHAT + HOW TO…
threat of
new
competitors
impact of Rivalry with
complementary current
products competitors
PORTERS 6
FORCES
MODEL
threat of
substitute
power of buyer
products
power of suppliers
1.THREAT OF NEW COMPETITORS
Assesses how easy or difficult it will be for a new competitor to enter into the current
market based on the barriers in place. Existing businesses need to create high entry-level
barriers to the market to stop new competitors.
1) MACRO ENVIRONMENT
No control over but must design strategies to adapt to situations in the external
environment. The business needs to eliminate any threats and capitalize on opportunities
Tools used:
Environmental Scan
O + T of SWOT
PEESTLE SO WHAT + HOW TO…
1) Environmental Scan
To identify factors that may have an impact on the business, then adjusting existing plans to
deal with these factors
2) PEESTLE ANALYSIS
SO WHAT + HOW TO…
Political Factors
Environmental Economic
Factors Factors
PESTLE
Analysi
s
Legal Factors Ethical Factors
Technoloigcal
factors Social Factors
, 2) MARKET ENVIRONMENT
Any place where goods and services are bought and sold
Tools used:
Environmental Scan
O + T of SWOT
PORTERS 6 Forces
SO WHAT + HOW TO…
1) Porters 6 Forces
The 6 Forces
SO WHAT + HOW TO…
threat of
new
competitors
impact of Rivalry with
complementary current
products competitors
PORTERS 6
FORCES
MODEL
threat of
substitute
power of buyer
products
power of suppliers
1.THREAT OF NEW COMPETITORS
Assesses how easy or difficult it will be for a new competitor to enter into the current
market based on the barriers in place. Existing businesses need to create high entry-level
barriers to the market to stop new competitors.
