🏔️
BL2 Evaluating a Company’s
External Environment
Created @April 2, 2025 9:21 PM
Class OBS 310
Files & media Block 2 Evaluating a Company's External Envi.pdf
Block 2
💡 Unit Outcomes
1. How to recognize the factors in a company’s in a company board
macroenvironment
that may have strategy significance.
2. How to use analytical tools to diagnose the competitive conditions in
a
company’s industry.
3. How to map the market positions of key groups of industry rivals.
4. How to use multiple frameworks to determine whether an industry’s
outlook
presents a company with sufficiently attractive opportunities for
growth and
profitability.
BL2 Evaluating a Company’s External Environment 1
, 💡 From thinking strategically about a firm’s situation to choosing a strategy
1. Understanding External Environment Analysis
A company’s external environment consists of factors outside its control that
impact its operations and strategy.
The analysis helps in identifying opportunities and threats.
BL2 Evaluating a Company’s External Environment 2
, 💡 Components of a company’s Macro Environment
Key Frameworks for External Analysis (NB)*
1. PESTLE Analysis
Political: Government regulations, trade policies, taxation, and political
stability.
Economic: Inflation, exchange rates, economic cycles, and market
conditions.
Social: Demographic shifts, lifestyle changes, cultural influences.
Technological: Innovations, R&D, automation, industry advancements.
Legal: Laws, regulations, and compliance standards.
BL2 Evaluating a Company’s External Environment 3
BL2 Evaluating a Company’s
External Environment
Created @April 2, 2025 9:21 PM
Class OBS 310
Files & media Block 2 Evaluating a Company's External Envi.pdf
Block 2
💡 Unit Outcomes
1. How to recognize the factors in a company’s in a company board
macroenvironment
that may have strategy significance.
2. How to use analytical tools to diagnose the competitive conditions in
a
company’s industry.
3. How to map the market positions of key groups of industry rivals.
4. How to use multiple frameworks to determine whether an industry’s
outlook
presents a company with sufficiently attractive opportunities for
growth and
profitability.
BL2 Evaluating a Company’s External Environment 1
, 💡 From thinking strategically about a firm’s situation to choosing a strategy
1. Understanding External Environment Analysis
A company’s external environment consists of factors outside its control that
impact its operations and strategy.
The analysis helps in identifying opportunities and threats.
BL2 Evaluating a Company’s External Environment 2
, 💡 Components of a company’s Macro Environment
Key Frameworks for External Analysis (NB)*
1. PESTLE Analysis
Political: Government regulations, trade policies, taxation, and political
stability.
Economic: Inflation, exchange rates, economic cycles, and market
conditions.
Social: Demographic shifts, lifestyle changes, cultural influences.
Technological: Innovations, R&D, automation, industry advancements.
Legal: Laws, regulations, and compliance standards.
BL2 Evaluating a Company’s External Environment 3
