External factor
External Factor Evaluation Paper
Example 1: Dell Computer
Key External Factors
Opportunities
Increasing demand for Speed, Memory and Graphic Capability
Increasing demand for Portability
Emergence and early popularity of "Tablet" Products
Improving outlook for PC sales
Increasing focus on cost reduction
Increased Use of Wireless Technology
Increase in Strategic Acquisition
Increasing Demand for Green Products
Weight Rating
Weighted
Score
0.1
0.08
0.12
0.07
0.1
0.07
0.07
0.08
2
3
3
4
4
2
2
4
0.2
0.24
0.36
0.28
0.4
0.14
0.14
0.32
0.1
0.06
2
2
0.2
0.12
0.07
0.08
1
4
3
35
0.28
0.24
2.92
Threats
Increase in Competition
Increasing interest in longer battery life
Expansion of Business Models to incorporate new lines of business (Related Diversification) as the core business matures
Decline in Netbook Sales
Total
Analysis of the External Environment
Every company deals with internal and external factors that affect their business. These external factors involve trends related to things such as oil price changes, political instability, government regulation and many more. External environment impacts every company; it’s all about how every company adjusts to external trends and prepares for them before they occur.
The best companies always try to anticipate these external factors and respond strategically to them. There are two types of trends: the ones that can offer the company strategic opportunities and the ones that provide threats. By identifying opportunities and threats, companies can protect themselves from future harm and take advantage of opportunities as they emerge. There is a set
of trends common within an industry. Each of these forces has a different weight depending on the company, and is dealt with differently as well. Companies always differ on how they prioritize trends.
Right now, there are two new major trends going on in the computer manufacturing
Example 1: Dell Computer
Key External Factors
Opportunities
Increasing demand for Speed, Memory and Graphic Capability
Increasing demand for Portability
Emergence and early popularity of "Tablet" Products
Improving outlook for PC sales
Increasing focus on cost reduction
Increased Use of Wireless Technology
Increase in Strategic Acquisition
Increasing Demand for Green Products
Weight Rating
Weighted
Score
0.1
0.08
0.12
0.07
0.1
0.07
0.07
0.08
2
3
3
4
4
2
2
4
0.2
0.24
0.36
0.28
0.4
0.14
0.14
0.32
0.1
0.06
2
2
0.2
0.12
0.07
0.08
1
4
3
35
0.28
0.24
2.92
Threats
Increase in Competition
Increasing interest in longer battery life
Expansion of Business Models to incorporate new lines of business (Related Diversification) as the core business matures
Decline in Netbook Sales
Total
Analysis of the External Environment
Every company deals with internal and external factors that affect their business. These external factors involve trends related to things such as oil price changes, political instability, government regulation and many more. External environment impacts every company; it’s all about how every company adjusts to external trends and prepares for them before they occur.
The best companies always try to anticipate these external factors and respond strategically to them. There are two types of trends: the ones that can offer the company strategic opportunities and the ones that provide threats. By identifying opportunities and threats, companies can protect themselves from future harm and take advantage of opportunities as they emerge. There is a set
of trends common within an industry. Each of these forces has a different weight depending on the company, and is dealt with differently as well. Companies always differ on how they prioritize trends.
Right now, there are two new major trends going on in the computer manufacturing