Strategic Management: External Environment and Market Conditions

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
External environment and market conditions currently faced by the organisation and possible
future scenario .......................................................................................................................3
TASK 2............................................................................................................................................6
Use of relevant internal analysis tools to draw appropriate conclusions................................6
TASK 3..........................................................................................................................................10
Discuss the possible strategies that the company could follow to defend its core business 10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic Management is defined as collection of managerial decision and action which
determine in achievement of long term performance of business in an effective and efficient
manner (Aguinis, Edwards and Bradley, 2017). This includes scanning of environment such as
external as well as internal, formulation of strategy, implementation of strategy, evaluation and
control. Studying of strategic management focus on evaluating and monitoring of various
external market opportunities and threats in order to identify strengths and weaknesses. It
provide direction to business and specifying objectives of organisation, developing plans and
policies in order to attain those and allocation resources for implementation of set plans. The
organisation chosen for given assignment is Vodafone which was established in 1991 by Gerry
Whent and Ernest Harrison. It is British multinational telecommunications headquartered in
London and Newbury Berkshire. This ranked as 4th in number of mobile consumers in 2018 and
serving worldwide. The products of Vodafone are fixed line telephone, broadband, internet
television, mobile phone, digital television and so on. The aim of report is to discuss about
external environment and their market conditions which is faced by it in current scenario with
aid of PESTLE analysis. For knowing about inside aspects of business, internal analysis has done
with help of SWOT. It has also covered strategies which can be followed by business.
TASK 1
External environment and market conditions currently faced by the organisation and possible
future scenario
External environment is defined as set of all outside components or influence which
impact on operation of business (Ansoff and et. al., 2018). These factors are uncontrollable by
individual which directly effect on operation and activities of enterprise. The external
environment are measured through PESTLE analysis which is given below:
PESTLE Analysis
It is defined as framework which helps in analysing key factors that influence
organisation from outside environment. This include six factors which are explained below:
Political Factors- It is defined as political condition of market which includes
government rules and regulations, inflation and so on. Such factors are grown in twenty first
century due to high pressure on international brands. These environment affect economic trade