Management and Organizational Studies 4410A/B Chapter 3: chapter 3 notes

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: Raymond Leduc

Document Summary

External analysis is often referred to as environmental scanning or industry analysis; it involves identifying and evaluating trends and events beyond the control of a single firm and helps managers formulate strategies to deal with opportunities and threats. The purpose of an external audit is to develop a list of opportunities that the firm could benefit from and threats that should be avoided: the list should be finite so that only key variables are identified. External forces can be split into 5 categories: economic. gdp is a very important variable in strategic planning across countries. factors have a direct impact on the attractiveness of certain strategies (i. e. when interest rates rise, the cost of expansion is more costly, discretionary income falls and demand for discretionary goods fall) a low value of the dollar means lower imports and higher exports: social/cultural/demographic/natural environment, political/governmental/legal.