BUS 800 Study Guide - Final Guide: John Wiley & Sons, Pest Analysis, Strategic Management
Document Summary
Chapter learning objectives: be familiar with a number of frameworks used to analyze an organization"s external environment and understand how the structural features of an industry influence competition and profitability. You have been introduced to a systematic approach to analyzing a firm"s industry environment using pestel analysis and porter"s five forces framework. Pestel analysis aims to identify those factors that are most likely to shape the competitive conditions within an industry. The five forces framework classifies those features of an industry that drive competition and profitability. The five forces framework can be used to explore future as well as current competitive conditions. It is useful for predicting industry profitability and identifying how the firm can improve industry attractiveness. Undertaking a pestel analysis of the remote environment allowed us to address the impact of political, economic, social, technological, ecological, and legal influences on the industry environment.
