Dynamic External Environments
The development of this essay will be discussing uncertain and dynamic external environments and if they require more effective application of analytical tools and framework and to what extent they do. The external environment refers to the range of factors that influence the operation and performance of an organisation that happens out-with the organisation which they have limited control over and by applying analytical tools and framework they try to prepare themselves best for what may come. As the environment is constantly uncertain and dynamic the organisation is not in a very stable strategic position as the factors surrounding the company may change at any minute and they cannot control the rate of change at which this happens and how often it will change. Analytical tools and frameworks are then put in place to try and predict the environmental changes or to even influence the environmental change for the organisations benefit. Even though the organisation cannot control the external environment and when it happens it is always wise to prepare themselves for what may come in the future as it may arise quickly. The future environment is not only essential to the organisation but for the future of the products and staff. There are many opportunities involved in the external environment but it is up to the organisation on which factors to focus on. There is the opportunity to access new segments in the market, complementary products and services to the consumer and the opportunities that arise over time by thinking ahead to what the consumer will want and then when the time comes having that competitive advantage over the marketplace.
In the strategic management industry analytical tools and frameworks are all connected even though they are all in no way the same they all have the same output, which is to put the company at a competitive advantage and to stop them from making radical business decisions which could lead to financial problems or tarnish
In the strategic management industry analytical tools and frameworks are all connected even though they are all in no way the same they all have the same output, which is to put the company at a competitive advantage and to stop them from making radical business decisions which could lead to financial problems or tarnish
References: BOOKS Lynch.R, (2006), Corporate Strategy 4th Edition, England, Pearson Education Ltd Johnson.G,Scholes.K,Whittington.R,(2008),Exploring Corporate Strategy 8th Edition, England, Pearson Education Ltd WEBSITES http://www.pewclimate.org/docUploads/PEW_CorpStrategies.pdf http://www.ventureline.com/accounting-glossary/E/external-environment-definition/ http://ai.eecs.umich.edu/cogarch0/common/env/dynamic.html