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Saturday, December 7, 2013

Evaluating a company’s external environment

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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