external environment of organization~~

Salam to readers..

What i gonna do (write laa) today is to review on my strategic management's 3rd lecture..On the 3rd lecture we are learn how to evaluate a company's external environment. TOday is a quite lenghty post, so u guys bear with it k...

When??
The evaluation on the external environment should be done long before the organization decide on the vision of the company...do u guysz still remember my last entry on vision & mission of organization?sure u don't remember larh...better u alls check my last entry and READ AGAIN!!..hehe

How??
So,,,how??of course la we gonna use some tools to help us evaluate the environment, right?. Dr Ummi is focusing on 2 major model that is widely used by any industry in evaluating the external environment. Ok, first~jeng jeng jeng..THE PORTER'S 5 FORCES MODEL

So, how do we evaluate using this model. There are 3 steps that we gonna do. 1st, identifies first!! Identify all the different parties and specific factors that bring the competitive pressure in each factor. 2nd, u must evaluate how strong the competitive pressure and classified them as strong, moderate or weak level. 3rd, u determine whether the collective strength of all five competitive forces is conducive to earning attractive profits in the industry. If ur analysis show more benefits to ur company, then u may proceed with ur proposed business.

Ok,lets move on to the second tool which is...THE PESTEL ANALYSIS.

The first time I heard about this acronym, I'm sort of confused+wondering 4 a moment..I'm wondering, am I got into a farming or something like gardening class..PEST??reallyyy???oh my english.....ok stop now cik tkah!!kekeke..What is PESTEL actually ha?Below, I give some examples on each factors so that u guys paham~

P@Political Forces=Political factors include elements such as tax policies, changes in trade restrictions and tariffs and the stability of the governments

E@Economic Forces=Economical factors include elements such as interest rates, inflation rates, GDP, unemployment rates, level of disposable income, and the general growth or decline of the economy

S@Social Forces=social factors include trends in demographics such as population size, age, and ethnic mix, as well as cultural trends such as attitudes towards obesity and consumer activism.

T@Technological Forces=Technological factors include for example changes in the rate of new product development, increases in automation, and advancements in service delivery industry

E@Environmental Forces=natural disaster and weather patterns..(u guys see x that the example is getting shorter? thats mean,,cik tkah is getting lazier..kekeke) ok and the LAST factor is.....

L@legal forces=include laws involving issues such as employment , health and safety, discrimination and antitrust...

At last...my entry finished.......ehhh..wait, below is the example of the Porter's Five Forces Model analysis on company Nike that i got from Sheikh Google...check it out..

ok..till then..wassalam~

May ALLAH bless us~~