External Environmental Analysis of a Startup Company

The Significance of Environmental Analysis 0
Title: The Significance of Environmental Analysis
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The Significance of Environmental Analysis 1
Executive Summary
This report summarizes about the entrepreneurship and entrepreneurial decisions taken by the
startup companies. External Environmental Analysis has been performed for a startup company
and this is followed by the industry analysis. Key people skills and financial feasibility have been
explained in detail and this is followed by a conclusion.

The Significance of Environmental Analysis 2
Contents
Introduction......................................................................................................................................3
1.External Environmental Analysis.................................................................................................3
2.Industry Analysis..........................................................................................................................5
3.Key People and Skills...................................................................................................................6
4. Financial Feasibility.....................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................10

The Significance of Environmental Analysis 3
Introduction
An entrepreneur is an individual who starts the business with a limited number of
resources and efficient planning that is required and he/she is responsible for the rewards and
risk of the business venture. The business idea encompasses the new product and services rather
than having the business model. There are entrepreneurial start –up venture targets with the
highest returns and equal level of uncertainty. The entrepreneur has been willing to take risks for
financial security as well as career. This needs to spend time on the uncertain venture as well as
the capital and arrangement of necessary raw materials, requisite capital and skilled employees.
Marketing, distribution and sales are essential aspects which will be controlled through the
entrepreneur. There is a small line between the small business and entrepreneur. The roles are
common, but there are distinct differences which can set apart. Small businesses are known for
dealing with the established products and entrepreneurial ventures with the innovative offerings.
There is limited growth and has continued profitability and entrepreneurial ventures target for the
rapid growth.
1. External Environmental Analysis
Environment Analysis is regarded as a strategic tool. This is the process which identifies the
existing internal and external elements and this will have an impetus on the level of the
opportunity or threat that these factors will possess. These evaluations have will get translated in
the decision-making process. The analysis will help and with respect to alignment of strategies
with the environment of the firm. The market has been undergoing changes every day. There are
new things developed and whole scenario will be altered in a few seconds. There are few factors
which will be beyond the control. A lot of control can be implied in the situations. Businesses