Considerations Of A Strategic Plan

Satisfactory Essays
Considerations of a Strategic Plan

External Forces and Trends Considerations:

1) Legal and regulatory Mitzi

2) Global Mitzi

New businesses will take longer to thrive with the United States falling economy. The faltering job market and the deepening slump in housing threaten to hurt consumer spending. Consumers are becoming more conscious of their spending and therefore using cash to pay for smaller necessary purchases. The cost of entertainment and other presumed luxuries may be pushed to the background by most families, when having to choose whether to pay for a bill or treat the family out. Thriving businesses will understand the need to provide a service or product at affordable prices.

Technological -The knowledge explosion has introduced new technology for nearly every business function. As we enter a technology based century, the technology used in every organizations operation is increasingly turbulent, rocked by forces such as competition and customer demands. The technological element tends to develop through periods of incremental change punctuated by technological breakthroughs that either improve or destroy the ability of firms in an industry. It is the current state of knowledge about the production of goods and services in an industry.

Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.

Social – Social factors that affect a company is in regards to the culture of the external environment. The culture of the external environment is developed from the ecological, demographic, religious, educational, and ethnic conditioning. The company’s social factors involve the beliefs, values, attitudes, opinions, and lifestyles of the people included in the external environmental culture.

Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
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