Report on the Significance of Environmental Analysis for Startups

This report delves into the significance of environmental analysis for startup companies. It begins with an executive summary and an introduction to entrepreneurship, defining the role of entrepreneurs and their decision-making processes. The report then focuses on external environmental analysis, emphasizing its strategic importance in identifying opportunities and threats. It proceeds to industry analysis, highlighting its role in understanding a company's position relative to competitors. The report also examines key people skills essential for professional achievement and team building. Financial feasibility, including start-up funding requirements and investor returns, is discussed. The report concludes with a summary of the importance of venture capital in supporting startup growth.

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.

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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

The Significance of Environmental Analysis 4
have been influenced through the environment. All situational factors can determine daily
circumstances and impetus on firms. Businesses will constantly make an analysis of market and
trade environments (Kushwah, 2018). There are a number of strategic analysis tools which the
firm will be able to use and these are common. The detailed analysis of environment can be
given through the PESTLE analysis. This can give the strategic view of how to conduct the
business. Strategy builders and managers have been using this form of analysis of finding where
they stand currently. It helps foresee where the organizations will beget standing in future. The
factors will be affecting the industry directly as well as indirectly (Kushwah, 2018).
Managers will be required to learn about the political, social, economic and technological
factors. This is how the PEST analysis is conducted. PEST is also considered as environmental
analysis. This is regarded as short version of PESTLE analysis. External environmental analysis
will be conducted by primary analysis and study of the macro environmental factors, competitor
analysis and industry analysis and reviewing the growth of the organization. Macro
environmental forces are regarded as dimensions in a broad society which will be influencing the
firms that are existing within. This will be focusing on the future probability of the events.
Industry environment also includes the contingencies set which will be having the direct
influence on response and action of the firm. It will be focusing on factors that will be
influencing the firm’s profitability existing within the industry and competitor analysis is focused
on the anticipation of competitor dynamism in responses and action (Grier, 2014). E.g.: An
organization ABC needs to accept a key call to differentiate its portfolio. Henceforth, it will go to
the outer condition examination. By this, it will SCAN (for any flag of progress in patterns all in
all condition), MONITOR (the progressions to check whether these happen from the anticipated
filtered ones), and FORECAST (Tidström, 2012).

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2. Industry Analysis
Industry Analysis is the strategic tools which facilitate the comprehension of the company
which is relative to the position of other organizations and produce the same products and
services. Comprehension of work forces in whole industry is regarded as important effective
strategic component of strategic planning (Sumiati et al., 2017). Industry analysis will enable the
small business owners for identification of threats and opportunities that are faced by the
business and resources on the development of unique capabilities while will be leading the way
towards competitive advantage. There are a number of small business owners as well as
executives who will consider themselves as the worst victim and best observers of what have
been running in the industry. The managers fail sometimes in understanding the industry, which
has a direct impact on the ability of succeeding.
Understanding the industry and anticipation of future trends as well as directions will be
given on which people need to do reaction and control the industry portion (Kamble,
Gunasekaran and Sharma, 2018). There are both competitors and people in the similar industry
and key is searching for the different or similar abilities between the organization and
competition and dealing with the industry special forces that will have an impact over the
organization. It is essential in identifying the abilities that are regarded as superior to the
competitors. The companies can utilize ability for the establishment of competitive advantage.
The industry analysis will be comprised of 3 elements. Foremost, the underlying forces at the
work and organization, the complete industry attractiveness and also the critical factors which
will be determining the success of a company within a specific industry. One methodology
through which business are compared is finding out the average of the participants in the
industry. This can be achieved through the ratio analysis as well as comparisons (Vydra, 2007).

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The ratios will be calculated through division of one measurable factor through total sales and
the employee’s number. For instance- The financial ratios will be calculated through the whole
industry with data available through many papers and reports published. By doing the
comparison of a given ratio for one company and complete industry as the whole. The business
owners will be learning about how the business stands when compared with industry averages.
For instance-There is a nursing home (small), which will be comparing the payroll given every
employee ratios through the residential care average operator and determining the competitive
edge (Gugliermetti and Bisegna, 2006).
3. Key People and Skills
With regards to professional achievement, the relationship building abilities are similarly
as imperative as the specialized capacity. In view of that, here are five of the most imperative
resources we have to follow to construct a beneficial and agreeable work environment (Coleman,
2014).
1. Being veritable -It's anything but difficult to see through faked acclaim (or appreciation) and
either can be immediately translated as disparaging. The most believed associates in my circle
are the ones who enable me to take care of issues with exhortation and respectability. Endeavor
to be that individual to whatever number of your companions as would be prudent. Legit
associates are significant resources, so dependably be genuine.
2. Being a decent audience- It's entirely clear when somebody is processing what people said
instead of simply 'hearing' it. Accepting a point and reacting with vitality and suitability is
completely the key. Regardless of whether it's in more extensive gatherings or even over
messages, make an effort not to get notoriety for being separated or just concentrating alone

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plan. As we give our partners the complete consideration, we will find that they turned out to be
more responsive to us – making a more open and aware working relationship (Savage, 2009).
3. Being sure-It ought to abandon saying, yet an inspirational viewpoint is a gigantic resource
for the group. Much like a grin, a cheery disposition is irresistible and will make people a joy to
be near. People can spread this nice sentiment by setting aside the opportunity to draw in
partners (at all levels) in useful discussion. A dynamic office condition relies upon positive
camaraderie, so dependably know about your commitment to this. This is especially valuable
when things turn out badly. Harping on oversights can energize sick inclination among your
group; however discussing "how we ensure it doesn't occur once more" covers a similar topic in
a significantly more beneficial way. Endeavor to be the 'dynamic arrangements' individual in
your work environment and you'll before long observe the effect (Lee, 2013).
4. Being dependable-The most grounded working connections are based upon trust. A great
many people are attracted to colleagues and companions that they know can be relied on.
Accordingly, in the event that you never avoid a test and constantly present certainty and
perception to stand up to them (Price, 2013).
5. Being amiable-From the gathering staff to the CEO, no one ought to be absolved from this.
Regard and amiability are essential to how you conduct yourself among the general population
4. Financial Feasibility
The financial feasibility is a degree by which a strategy, project, or a program is
financially possible and attractive too. The feasibility financial study is defined as an assessment
tool of financial concerns of anything. In a scenario, for starting and running the business, it will
be considering numerous things and include startup capital, revenues, expenses and investor

The Significance of Environmental Analysis 8
income as well as disbursements. Other portions that are regarded as whole feasibility study
would be contributing the data to the financial basic structure. The feasibility financial study
needs to be focused on a group of projects or specific projects like the advertising campaigns.
However, the purpose of establishment purpose of the company and attracting the investor must
include the financial variables in a comprehensive study of the financial feasibility
(Schulmeister, 2008).
Start-up funding requirement
Start-up funding represents what amount of cash is needed to initiate the business and
make it running unless this has self-sustaining. The company must include the capital fund for
running the business for a period of one to two years (Pooittiwong and Ramirez, 2016).
Searching for the initial start-up funding sources
There have been different ways of raising the business capital irrespective of the route the
company has taken. Investors are interested in investing and the banks will be approving the
loans and large multinationals will provide the company with contracts, if personally business
invested. When the complete list is regarding funding resources, it is essential to include that
how the company contributes to business and this also includes free labor. If the company is a
non-profit organization, the given professional timings can be tax deductible (Mitchell, 2013).
Potential returns and feasibility study of investor
An Investor can be anyone friends, family members, shareholders, investment institutions
and professional associates. The individual or business is willing of giving cash and this could be
the potential investor. The investor will be giving the money on understanding of how the
company will receive be receiving return on investments. In accumulation to this, the invested
amount will be getting the profit percentage. In order to attract the investors, it is essential to

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show how the businesses will be making profits. How much profits will be made and investors
will get what from the investment done. This investment returns category will be providing the
investors description will be getting involved and discussion on different variables which will
have an impact over the business profitability in more than one scenario (Burke, 2013).
Conclusion
Venture Capital is regarded as financing the investors for providing the start-up
organizations’ and small businesses which are believed to have the long term growth. This term
venture capital has been taken from the well-off investor and financial institutions and
investment banks. However, this will not be taking any monetary funds and it can be provided
through the management or technical expertise. This can be risky for investors who will be
putting up for funds, the average returns are attractive pay off. For new organizations, venture
capital is regarded as increasingly popular and essential source for attracting the capital.
Ventures add up to income, deduct the operational expense, and after that from the rest of
the sum, choose what rate will be disseminated to financial specialists. Individuals ought to never
guarantee 100% of the rest of the sum to the financial specialists. Individuals need to keep
money close by to keep working your business, develop your business, and fabricate savings.
Most venture returns are normally dispersed on a quarterly, half-yearly, or yearly premise. Think
about how the different dissemination cycles could influence your business' income amid the
initial two years of task.

The Significance of Environmental Analysis 10
References
Burke, L. (2013). Developing Advanced Assessment Skills Developing Advanced Assessment
Skills. Nursing Older People, 25(5), pp.8-8.
Coleman, D. (2014). Skills for Communicating with Patients Silverman Jonathan et al Skills for
Communicating with Patients312pp £34.99 Radcliffe Publishing 9781846193651
1846193656. Nursing Older People, 26(4), pp.10-10.
Grier, D. (2014). The External Environment. Computer, 47(11), pp.124-124.
Gugliermetti, F. and Bisegna, F. (2006). Daylighting with external shading devices: design and
simulation algorithms. Building and Environment, 41(2), pp.136-149.
Kamble, S., Gunasekaran, A. and Sharma, R. (2018). Analysis of the driving and dependence
power of barriers to adopt industry 4.0 in Indian manufacturing industry. Computers in Industry,
101, pp.107-119.
Kushwah, R. (2018). Evaluating a Firm’s External Environment in Delhi. Journal of Advances
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Kushwah, R. (2018). Influence of an Approach to External Business Environment in
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Lee, P. (2013). Communication Skills for Children’s Nurses Communication Skills for
Children’s Nurses. Nursing Children and Young People, 25(5), pp.12-12.
Mitchell, G. (2013). Medicine Management Skills for Nurses Medicine Management Skills for
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Pooittiwong, A. and Ramirez, B. (2016). The Feasibility of Monetary and Financial Integration
in ASEAN: Policy Considerations for Enhancing Integration Feasibility. SSRN Electronic
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Price, B. (2013). Writing Skills for Nursing and Midwifery Students Writing Skills for Nursing
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