Page 50 - E2 Integrated Workbook STUDENT 2018

Chapter 4

Analysis of the macro environment

2.1 Environmental analysis

Corporate appraisal (SWOT) was looked at as part of the rational/formal approach to
strategy development. The internal analysis techniques which considered the
organisation’s internal capabilities (resources audit and Porter’s value chain) were
looked at in the competitive advantage chapter.

The second element to feed into the corporate appraisal is external analysis, which
looks at the environment within which the organisation operates.

When establishing its strategy, it is important for an organisation to look at the
various factors within its environment that may represent threats or opportunities and
the competition it faces.

2.2 PESTLE analysis

 Political

 Economic

 Social

 Technological

 Legal

 Environmental

Illustrations and further practice

Try case study style question 1 from Chapter 4 of the Study Text.

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