BEntSim: INTERNAL AND EXTERNAL ENVIRONMENTAL SCANNING
EXTERNAL ENVIRONMENT ANALYSIS SCANNING
INTERNAL ANALYSIS OF THE ENVIRONMENT
• is the first step of environment scanning.
Organizations should observe the internal
organizational environment.
HOW DO BUSINESSES CONDUCT INTERNAL SCANNING?
WHAT DOES IT INCLUDE?
1. Employee Interaction
2. Setting Objectives
3. Identifying Strengths And Weaknesses
What can be used to assess the internal environment?
1. Interviews,
2. surveys,
3. discussions or evaluation
Why is SWOT analysis important?
SWOT (strengths, weaknesses, opportunities, and
threats) is a widely used strategic planning tool that
organisations use to perform a comprehensive and
competitive analysis of various internal and external
factors. The result of SWOT analysis helps the
organisation. to make effective planning for the future.
SWOT (strengths, weaknesses, opportunities, and
threats) is a widely used strategic planning tool that
performs a comprehensive and competitive analysis of
the above four factors of any given organization.
Strengths and weaknesses are internal variables of an
organisation, while opportunities and threats are two
external variables. The value of the SWOT analysis often
depends on the objectives of those, who carry out the
SWOT test. If they can provide objective, relevant
analysis information, the results are extremely useful for
the company.
1. Examining the industry environment of the
organization
2. Consists of all those forces of external that
affect the working of a business.
3. Refers to the conditions, forces, events and
situations within which business enterprises
have to operate.
4. Closely related to SWOT Analysis
Industry
• is a group of companies offering products or
services that are close substitutes for each
other. Examples of an industry include soft
drinks, mobile phones, and sportswear.
Market Segment
• are distinct groups of customers within a
market that can be differentiated from each
other based on individual attributes and
specific demands. Market segments can be
separated by characteristics such as
geography, demography, and behavior.
Will companies survive if the marketing strategy is
dependent upon targeting an entire mass market?
Scenario
• Farmer Joseph realize that not everyone would
purchase his healthy organic produce. He
does not want to advertise to the masses
because he does not want his financial
budget to be affected. What will he do
instead?
Supply Chain
• It is the system involved in converting a
product or service from raw materials into
finished goods and then transporting finished
goods from the supplier to the consumer.
Why do businesses need to conduct a thorough
external analysis and analyze its supply chain?
• In order to meet the customers at a least cost
• To quickly distribute products/increasing the
speed of getting a product from production to
market.
• Boosts customer service
• Improves financial positions
PESTEL Analysis
• To round off external analysis, a company must
conduct an examination of the Political,
Economic, Social, and Technological
landscape of the industry.

Importance of PESTEL Analysis:

• It helps you determine the steps you should
take in starting up a business and the bases of
your SWOT Analysis
• It helps you to provide what your customers
needs and wants leaning towards being a
business solution oriented for their customers.

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pestel-analysis