Broad Environment
Running Head: BROAD ENVIRONMENT
Knowing the Unknown about the Broad Environment
University of Tampa
MGT 431
Practical Strategic Assessment
Dr. George Bud Wynn
June 09, 2009
Abstract
In “Foundations in Strategic Management”, pages 21 to 27, author Harrison discusses the influence that the external environment has on a particular company’s operations and how its managers can adapt to environmental uncertainties to sustain their competitive advantages. Harrison also points out why it is important for firm to analyze and evaluate its broad environment.
He also mentions how managers can analyze and evaluate external forces and devise strategies to complement the rapid-changing environment in order for their company to be competitive throughout and take advantage of its strengths and minimize its threats.
He further divides the broad environment into four sub-headings (socio-cultural, economical, technological and political/legal) and states why each is important and the effect each have on a company’s operations. The purpose of the paper focuses more on informing the reader of the importance of evaluating a particular company’s broad environment. The paper also includes a review of and my opinion on what I think firms and their managers should be aware of when it comes to their company’s broad environment.
The Importance of the Broad Environment to Managers Before the 1990’s, if a business had a competitive advantage and opened its doors to the general public, it was almost guaranteed success. However, such cases no longer exist. In modern times, companies with competitive advantages such as sufficient resources, skilled workers, superior technologies and the like can still go under due to the ever-changing environment. Nowadays, successful businesses are shifting focus from just having a competitive advantage in one or two areas, to maximizing on the relevant information that its managers have about its operation environment; including the
Knowing the Unknown about the Broad Environment
University of Tampa
MGT 431
Practical Strategic Assessment
Dr. George Bud Wynn
June 09, 2009
Abstract
In “Foundations in Strategic Management”, pages 21 to 27, author Harrison discusses the influence that the external environment has on a particular company’s operations and how its managers can adapt to environmental uncertainties to sustain their competitive advantages. Harrison also points out why it is important for firm to analyze and evaluate its broad environment.
He also mentions how managers can analyze and evaluate external forces and devise strategies to complement the rapid-changing environment in order for their company to be competitive throughout and take advantage of its strengths and minimize its threats.
He further divides the broad environment into four sub-headings (socio-cultural, economical, technological and political/legal) and states why each is important and the effect each have on a company’s operations. The purpose of the paper focuses more on informing the reader of the importance of evaluating a particular company’s broad environment. The paper also includes a review of and my opinion on what I think firms and their managers should be aware of when it comes to their company’s broad environment.
The Importance of the Broad Environment to Managers Before the 1990’s, if a business had a competitive advantage and opened its doors to the general public, it was almost guaranteed success. However, such cases no longer exist. In modern times, companies with competitive advantages such as sufficient resources, skilled workers, superior technologies and the like can still go under due to the ever-changing environment. Nowadays, successful businesses are shifting focus from just having a competitive advantage in one or two areas, to maximizing on the relevant information that its managers have about its operation environment; including the
References: Harrison S. Jeffrey., St. John H. Caron (2008). The External Environment. Foundations in Strategic Management (pp. 21- 27). Mason, Ohio: THOMSON SOUTH WESTERN. Industry News. THE Journal 35.8 (Aug. 2008): 19-19 Academic Search Complete. EBSCO. [University of Tampa, Tampa, FL. 1 June 2009 .