MNG3701 - STRATEGIC PLANNING - LU3: STRATEGIC ANALYSIS: ANALYZING THE EXTERNAL ENVIRONMENTS. 2 QUESTIONS WITH DETAILED VERIFIED ANSWERS

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MNG3701 - STRATEGIC PLANNING - LU3:
STRATEGIC ANALYSIS: ANALYZING THE
EXTERNAL ENVIRONMENTS. 2
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
Importance of Analyzing the External Environment Ans: -Managers can
mitigate threats.

-Managers can leverage opportunities.

-Gain understanding of potential impacts.

-Understand the source / proximity of factors.

The PESTEL Model Ans: -Groups environmental factors into six
segments:

--Political

--Economic

--Sociocultural

--Technological

--Ecological

--Legal

These factors can create:

--Opportunities

--Threats

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Political Factors Ans: -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 Ans: -Largely macro-economic

Examples include:

--Growth rates

--Levels of employment

--Interest rates

--Price stability

--Currency exchange rates

Sociocultural Factors Ans: Society's cultures, norms, and values

-Are constantly in flux

-Differ across groups