I.

Theoretical framework
1. Management Environment
a. Business environment
Business environment refers to the sum of all factors or forces that are external
to firms and industries which affect their organizations and operation. These may include
economic, political, legal, technological factors and competitive forces. There are two
components of the external environment: The general environment which refers to a broad
condition or trend; and the specific environment refers to the part that directly impacts a
business’s achievement and goals. Deep understanding of the environment, businesses can
easily plan strategies to manage the risk or opportunity, so they can make decisions wisely.
b. Porter’s five forces of competition
Porter’s five forces of competition is a model that identifies and analyzes five
competitive forces including the bargaining power of suppliers as well as customers, the
competition among existing firms, ease of entry into the industry, and the existence of
substitutes. The model is often used to help determine the firm’s strengths and weaknesses,
which is useful for the development of organizational strategies.
c. PESTLE analysis
A PESTEL analysis is a study of the 5 key external factors (Political, Economic,
Sociological, Technological, Legal, and Environmental) that influence an organization.
2. Strategic Management
a. The strategic management process (SWOT Analysis)
Strategic management is the set of managerial decisions and actions that
determines the long-run performance of an organization. The five stages of the strategic
management process include goal-setting, SWOT analysis, strategy formation, strategy
implementation, and strategy monitoring.
b. SWOT analysis
SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT
analysis is a framework to help examine the internal and external forces that might create
opportunities or risks for an organization.