![]() ![]() Your customers – who are they, what do they really want, what changes are happening in their lives, attitudes, numbers, etc.It also includes competitors, those organisations that compete for your customers or offer alternative approaches to your services.Īnalysis of this environment requires a good look at the current and forecast situation regarding: It includes your customers/clients, suppliers and partners. It is the business/industry environment in which your organisation operates. This is the external environment closest to the organisation itself. However, to do so with any degree of success requires an understanding of the world outside, that is the external environments. Understanding and managing the internal environment can help you both shape strategy, and organise and direct resources to achieve what you want. This is the one environment over which the organisation as a whole has most control. Taking a strategic approach to this environment means considering how all these factors can be controlled and deployed to meet opportunities in the market place, and even to shape and lead that market. Analyzing your internal environment means looking at the systems, resources, knowledge, skills and activities of your organization and its people. These are known as the internal environment, the sector/industry environment, and the macro environment. One way to make sense of the business/industry environment is to consider it in terms of three distinct layers. ![]() Underpinning any business strategy is awareness and analysis of environmental factors. These will all help you to understand and develop a business strategy. Finally, they can help to provide insights and maybe spark our own intuitive ideas on what to do now, and what to do next. They help us to make sense of complex ideas, detailed information and broader trends, which will impact on our organizations. These tools are more than just jargon though, they provide managers with practical aids to help them become better at their jobs. Firstly, they are widely used in management so, like it or not, you should try to become familiar with the language of business strategy. There are several good reasons for using these. So how do you analyze your business industry environment? The experts suggest that you use a variety of analytical tools and frameworks. Knowledge of these can help you answer some vital questions, such as: what are the trends in your industry, and what changes in the wider environment present opportunities or threats to your organisation? To answer these and other questions you need to be able to study the context of your business or industry. How well do you know your business/industry environment? One of the fundamentals of good management is understanding the business you are in and, the wider industry environment in which your organization operates.
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