External Environmental Analysis Essay

1177 Words May 19th, 2012 5 Pages
External Environment Analysis
Kristy Sanchez
MGT/488
September-Sunday 11, 2011
Jeannette Guignard

External Environment Analysis
Introduction
This essay is written in regards to the Home Depot and the evaluation of their external environment. The Home Depot is a highly successful retail industry that has expanded globally. The Home Depot has a wide variety of supplies and materials for all home improvement projects. They even have tools, equipment, and trucks that can be rented out to assist with any larger home improvement needs. The Home Depot has made a continuity plan to assist with protection of the customers, associates, and the industry if a crisis or disaster occurs. A continuity plan is basically the instructional list or
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Their associates are trained in how to handle that situation and how to remain calm and professional if anything were to happen. The external environment affects this plan because almost all the causes of having to put this plan into use are external factors. The natural disasters play a big part on casing a crisis for the Home Depot, as well as, terror or biological threats.
General Factors
The Home Depot has to deal with general factors from the external environments that affect their business activities. For example, the housing market is not good in this day in age for this type of business. This can bring both opportunities and threats. The opportunities for the Home Depot would be that there are people that may be trying to fix up houses that have to be sold, or that have been foreclosed and are now being fixed for new potential buyers. The threats that would come from the poor housing market include people not wanting to fix up their houses right now because of all of the cut backs and the job market having such a reduction in force. This can also include people just wanting to let their houses go due to the lack of income, therefore, not wanting to fix up their house.
Industrial Considerations
The industrial environment is a large external factor for the Home Depot. The Home Depot has to keep an eye out and see how the other home improvement

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