Objective: Explain how environmental forces influence organizations.
Watch External scanning and analysis.
Read Principles of Management Chapter 1, 2, 3, 5 & 7.
External Environment Analysis-
● Select a publicly-traded company and in a 4-page paper complete an external environment
analysis that includes the following:
○ Laws & Regulations-
■ What are some key laws and regulations under which this company and the
related industry must operate?
○ The Economy-
■ How does the state of the economy influence the sales of this company’s
products?
○ Technology-
■ What new technologies strongly affect the company you have selected?
○ Demographics-
■ What changes in the population might affect the company’s customer base?
○ Social Issues-
■ What changes in society affect the market for your company’s products?
○ Suppliers-
■ How does your company’s relationship with suppliers affect its profitability?
○ Competitors-
■ What companies compete with the firm you have selected? Do they compete on
price, quality, or on other factors?
○ New Entrants-
■ Are new competitors to the company likely? Possible?
○ Substitutes and Complements-
■ Is there a threat of substitutes for the existing products? Are there complementary
products that suggest an opportunity for collaboration?
○ Customers-
■ What characteristics of the company’s customer base influence the company’s
competitiveness?
● The company’s website and a minimum of 3 additional sources are required.
● Use level 1 headings to separate the various sections in the paper.
● Your title page and reference pages are not included in the page count.