Sunday, 13 October 2013

Evaluating external environment (chapter 3)

Bismillahirahmanirahim...

Right now, i will continue with another topic in the strategic management, which is the evaluating external environment (as shown in the title above). So, basically the two main things that i learned in this topic are about PESTEL and 5 Forces

Firstly, I want to introduce the six components of Macro-Environment, or in short-form, we called it as PESTEL.
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So, from the picture above, you can straightly get the main components of Macro-Environment, right? But, it will be much easier if we just remember the PESTEL word. PESTEL analysis is a popular framework that used to understand the impact of external factors on organization and is used as strategic analytic technique. I will put a video that Miss Ummi had shared in the lecture class. 

  


Other than PESTEL, we also had learned about the 5 Forces analysis that was inspired by Micheal E.Porter and it was consists of five elements which are:

1) RIVALS        2) SUPPLIER       3) BUYER      4) SUBSTITUTES      5) NEW ENTRANCE



Actually, there are many others tools that an organization or individuals can use such as:

-SWOT (Strength, Weaknesses, Opportunity, and Threat)
-MOST (Mission, Objectives, Strategies, Tactics) 
-McKinsey 7-S (shared values, systems, staff, structure, style, strategy, and skills)

So, choose the suitable analysis tools, and use it to develop your business.

That's all for the chapter 3, i hope all of you can get benefits from it...:) 

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