External Environmental Analysis

This assignment emphasizes the significance of conducting both internal and external environmental analyses to inform effective business strategies. It discusses the use of tools like SWOT analysis, value chain analysis, and the PESTEL model to identify strengths, weaknesses, opportunities, and threats that impact a company's operations. The goal is to provide a comprehensive understanding of how these analyses can guide business decisions and lead to success in today's competitive market.

In the early age, cultural aspects, learning languages and travelling challenges restricted (Capacci, Scorcu and Vici, 2015). In 14 century
Christopher Columbus sailed westward and vasco da gama cruised to country for earn money then business travel has been integral part of
tourism industry(Cave and Brown 2012). Early tourism started with Nomads who
travelled around the world in search of food and shelter. Main intension of this traveller is to gathered food and traded around the world and
gave rise to the barter system (Capacci, Scorcu and Vici, 2015). 1500 BC is marked as the era when the Europeans visited pyramids and thus
developed the tourism for pilgrimage. Early tourism started with Nomads who travelled around the world in search of food and shelter. Main
intension of this traveller is to gathered food and traded around the world and gave rise to the barter system (Capacci, Scorcu and Vici, 2015).
1500 BC is marked as the era when the Europeans visited pyramids and thus developed the tourism for pilgrimage.
Internal analysis is very effective in defining various strengths
and weaknesses of the company. It generally focusses on
company's missions, visions, objectives and strategies for
achieving competitive advantages. Internal analysis also
considers various resources such as financial, human resource,
different assets as well as technological advancement which
helps in meeting organizational objectives in better ways. In this
SWOT and value chain analysis can be considering which are
very effective tool for internal analysis.
Value chain analysis: It is an essential for examining the
internal environment of any particular company. It is based on
various activities which is delivering products and services in the
market. In this consider two types of activities as one is primary
which has included inbound logistics, operations, marketing and
sales services and outbound logistics. On the other side,
secondary activities including infrastructure, procurement,
human resource management and technology. For the Print
Wafer Mouse Trooper, their primary activities are providing
better marketing consulting services to the other companies who
are dealing in art and crafts or fines art in the market. This firm
has sound contacts or relations with all companies because it
supplies products or material on time with best quality. They use
various tools or technique.
According to internal and external analysis, effective strategies must
be formulated so that company cam achieves all competitive
advantages and grab the opportunities, reduces weak points as well as
utilise strengths with available resources for achieving objectives and
goals in effective manner. Internal factors can be control by the
organisation as it is controllable in nature but external factors cannot
be controlled by the firm so they adopt strategies for managing these
forces.
For surviving from all these factors, company can utilise
their resources in appropriate manner so different kinds of strategies
can be formulated for integrations of internal and external analysis.
Manager should analyse company's strengths, weaknesses,
opportunities and threats which will support in making effective
decisions regarding effective strategies and techniques for adoptions.
These approaches are very helpful in analysing all external factors
that cannot be control by the company or management. It can be
understood through PESTEL Model which is best approach for
external analysis such as:
Political factors: This forces consider all the changes regarding
government policies which can effect on the business operations
and its performance.
Economic factors: These factors concern with various changes
such as inflation, exchange rates, interest rates and economic
growth. Some of major factor of economic for consulting
marketing firm or Daler-Rowney company that growing market
and perceived values for money.
Social factors: These forces are related with human's lifestyles,
beliefs and knowledge of society. People are usually less
interested with purchasing art or crafts items due to high prices as
well as social activities are major factors of the company.
Technological factors: These factors also very important as it
effects on the marketing campaign of every or each firm because
of introducing new innovative ideas and technologies for
promoting particular products or services.
Legal factors: These factors generally depend on the country's
effects as some legal obligations as well as rules or regulations of
government that affects to the organisation and its operations.
Therefore, different laws and legal boundaries are major factors of
the firm.
Environmental factors: These forces are another important which
must be required for considering all these factors that effects on
the business operations such as animal campaign, save tree and
make green or clean environment campaign and many more.
Approaches for internal
environmental analysis
Approaches for external environmental
analysis Integrated internal and external