|
Operating Environment
|
|
|
 |
 |
|
The external environment in which business operates exerts a considerable influence. The company's relationship to this external-operating environment is complex. To be competitive, you have to respond to and interact with the external environment. We have to see the bigger picture and be aware of the related opportunities and constraints.
|
|
 |
|
The worksheets in this section utilise a PEST (Political, Economic, Social, and Technical) analysis technique to help us to assess the impact of these broader issues on the company. This analysis can help you to take account of external influences and how these issues can affect decision-making and long-term planning.
|
|
|
In reality, little or nothing can be done to eliminate these forces but a lot can be done to minimise the effect that they have on the company. The external environment can be divided into four main areas for the purpose of structured analysis:
|
|
- Political, e.g. laws and regulations
- Economic, e.g. finance and exchange rates
- Social - e.g. community and education
- Technological, e.g. E-commerce and obsolescence
|
|
|
The worksheet is laid out so that you can list the issues within each factor (Political, Economical, Social and Technological) that you believe impact on your business and grade each of these issues as being of 'high' or 'low' importance.
|
|
 |
|
|
