Chapter 3 : Evaluating A Company's External Environment

Learning Outcomes :

1.Become aware of factors in a company’s broad macro-environment that may have strategic significance. 
2.Gain command of the basic concepts and analytical tools widely used to diagnose the competitive conditions in a company’s industry. 
3.Become adept at mapping the market positions of key groups of industry rivals. 
4.Learn how to use multiple frameworks to determine whether an industry’s outlook presents a company with sufficiently attractive opportunities for growth and profitability.

On 24th September 2013 , I have attended my third lecture of strategic management . The title of the chapter is "Evaluating A Company's External Environment" . 

 I learned about the PESTEL analysis in the organization , which are Political , Economic , Social , Technological , Environmental and Legal .Let's talk about the political factors first . Political factors include political policies and processes including tax policy, fiscal policy,tariffs,the political climate.Secondly,the economic conditions which include the general economic climate and specific factors such as interest rates,exchange rates,the inflation rates and the unemployment rates. 

Thirdly,the sociocultural forces which include the societal values,attitudes,cultural factors and lifestyles.

Forth,the technological factors that include the pace of technological change and technical development that have the potential of wide-ranging effects on society.Fifth,the environment forces which includes ecological environmental forces such as weather,climate and water shortages. Last but not least is the legal and regulatory factors that include the regulations and laws with which companies must comply such as consumer laws,labor laws and antitrust laws. 

 Besides , I also learned about the Five Competitive Forces which are the competition from the rival seller,potential new entrants,producers of substitute products,supplier bargaining power and customer bargaining power.

KEY SUCCESS FACTORS ; the strategy elements,product and service attributes,operational approaches,resources,and the competitive capabilities that are essential to surviving and thriving in the industry.