Strategic Management : The General Environment And The Competitive Environment

1226 Words Aug 17th, 2016 5 Pages
Throughout the semester we learn the importance of strategic management in business. The textbook defines strategic management as “consisting of the analyses, decisions, and actions an organization undertakes to create and sustain competitive advantages”. Strategic Management is divided into three segments; strategic analysis, strategic formulation and strategic implementation. We learnt that businesses outperforms one another in the competitive marketplace and this is central to strategic management. We learned concepts that help us understand more about the industry and how to be a better leader. Analysis in business is crucial, however understanding your employees, improving as a leader, and diversification of the business is all equally important as well.
Strategic Analysis:
There are two types of environment in the business world; the general environment and the competitive environment. General environment has six segments and they include demographic, technological, politic/legal, economic, global, and sociocultural. This is important to asses as it gives us trend report in topics that will provide a positive impact to industries. An example of a trend report of general environment would be percentage of minorities in the workplace. The competitive environment consists of “industry-related factors and has more direct impact than the general environment”. It circulates around Porter’s five-force model of industry analysis. The five-factors are the threat of new…

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