Week 3:
In this
topic first we need to know about macro-environment. This macro-environment encompasses
the broad environmental context in which a company’s industry is situated that
includes strategically relevant components over which the firm has no direct
control. In addition, there are two things that important in this chapter.
First is about PESTEL analysis (Political, Economic, Social, Technological,
Environmental, and Legal) that focus on principal components of strategic
significance in the macro-environment. Second are five competitive forces that
also known as Porter’s 5 Forces framework of competitive analysis. This
Porter’s 5 Forces include competition from rival sellers, competition from
potential new entrants, competition from producers of substitute products,
supplier bargaining power and customer bargaining power.
To know
more what is PESTEL I read this website http://pestleanalysis.com/.. Actually
there are many website that explain about PESTEL analysis. Besides that also,
porter 5 forces is to know better about the company or organization rival. What
is their stronger?? And what is their weaker?? Therefore with this we can
conclude whether the industries attractive or not.
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