The Six Types Of Environmental Factors In Strategic Business
1. Where are we now?
2. Where do we want to be?
3. How will we get there?
4. When will we get there?
The point between where you are NOW & where you want to be is known as the gaps.
Calculating the "gaps" is known as gap analysis & can be demonstrated in the following diagram.
Strategic business unit o SBU is a semi-autonomous unit which is usually responsible for its own budgeting, new product decisions, hiring decisions & price setting. o An SBU may be a business unit within which a larger corporation or it may be a business unit itself. Corporations may be composed of multiple SBUs, in each of which is responsible for its own profitability. o Factors those determine the success of an SBU includes degree of autonomy given to the each SBU manager, degree to which an SBU …show more content…
The strategic management tools gauges macro environmental factors.
The different macro-environmental factors can affect the business strategies. So, it is vital to follow the PESTEL framework. The aim of this is to assess how exactly the factors influences business performance.
There are 6 types of environmental influences in the PESTEL framework. They are political, economic, social, technological, environmental and legal. They are all interdependent. For example, technological advances can affect the economy in the different markets.
SWOT Analysis is a simple but very useful framework for analyzing organization's strengths & weaknesses, opportunities & threats that they can face. It helps to focus on your strengths, by minimize threats, & by taking the greatest possible advantage of opportunities available. it also help in understanding of your competitors, which give you the insights for successful competitive position.
• What are advantages does your organization