III. Environmental Analysis
The Environmental Analysis is a strategic tool that helps determine the external and internal factors affecting the performance of the business. It is considered the heart of the business plan and perceived as the basic element for business survival.
Global Analysis
The environmental analysis section may begin with a description of the global business situation.
A global analysis evaluates the business trend in the worldwide market.
Remember that it is not the business trend that has the most significant bearing on the global analysis but rather the possible business opportunities or ideas that the global business trend offers.
The trend in the global market is the result of what happened in the past, while a possible business idea is the expected event that may happen in the future. The global trend acts as an indicator of any favorable sign for a business idea.
Once the world market is properly described, the business opportunities that the global trend provides must also be described.
The reader must be convinced that it is worth to exploit the business idea or opportunity based on the global business trend.
(Global Market - all the people in all areas of the world who buy or might want to buy something)
Societal Analysis
After describing and possibly convincing the reader of the bright business prospect in the world market, the next step is to present the societal analysis and determine the different variables affecting the societal environment.
The probable levels of effects of the various forces to the proposed business, and the frequency of occurrence of the environmental factors must be mentioned.
The societal analysis must tell how the environmental forces affect the proposed business and how great the effects are.
Examples: Economic Force: interest rate and disposable income as economic variables that may affect the proposed business
Industry Analysis
The industry analysis basically involves three important tasks as follows:
1. Conducting a critical evaluation of the forces in the industry that affect the proposed business.
2. Evaluating the probable position of the business in the industry.
3. Determining the most appropriate strategy that may be adopted by the proposed business.
Example:
The government’s planned jeepney modernization program
Transport Strike
What prompted the PUJs to launch a nationwide strike is their opposition to the PUV modernization program. The program launched by the the Department of Transportation (DOTr) mandates the replacement of jeepneys that are 15 years or older.
Global Analysis
The environmental analysis section may begin with a description of the global business situation.
A global analysis evaluates the business trend in the worldwide market.
Remember that it is not the business trend that has the most significant bearing on the global analysis but rather the possible business opportunities or ideas that the global business trend offers.
The trend in the global market is the result of what happened in the past, while a possible business idea is the expected event that may happen in the future. The global trend acts as an indicator of any favorable sign for a business idea.
Once the world market is properly described, the business opportunities that the global trend provides must also be described.
The reader must be convinced that it is worth to exploit the business idea or opportunity based on the global business trend.
(Global Market - all the people in all areas of the world who buy or might want to buy something)
Societal Analysis
After describing and possibly convincing the reader of the bright business prospect in the world market, the next step is to present the societal analysis and determine the different variables affecting the societal environment.
The probable levels of effects of the various forces to the proposed business, and the frequency of occurrence of the environmental factors must be mentioned.
The societal analysis must tell how the environmental forces affect the proposed business and how great the effects are.
Examples: Economic Force: interest rate and disposable income as economic variables that may affect the proposed business
Industry Analysis
The industry analysis basically involves three important tasks as follows:
1. Conducting a critical evaluation of the forces in the industry that affect the proposed business.
2. Evaluating the probable position of the business in the industry.
3. Determining the most appropriate strategy that may be adopted by the proposed business.
Example:
The government’s planned jeepney modernization program
Transport Strike
What prompted the PUJs to launch a nationwide strike is their opposition to the PUV modernization program. The program launched by the the Department of Transportation (DOTr) mandates the replacement of jeepneys that are 15 years or older.
ENVIRONMENTAL ANALYSIS Global Analysis - Evaluate the business trend in the worldwide market. What are the leading industries that have gained the support of the people around the world? •Trend in the Industry - What are the new developments in the industry your are interested in? - What are the possible business opportunities or ideas that this trend offers? Societal Analysis - What are the forces in the societal environment that can possibly affect the performance of the proposed business? - How does these forces affect the proposed business? - What are the probable levels of effects of these forces and what's the frequency of its occurrence? Industry Analysis: Consumer Analysis
Competitor Analysis
Market Forecast
Market Share Business Position Marketing Strategy |