The
External Environment Analysis
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This
section of your business plan involves assessing and analyzing the
external changes in the industry as well as the Political, Economic,
Social, Technological, Legislative and Ecological or
Environmental based changes. This is based on an information gathering
process which focuses on the External Environment of your
business. The main reason behind analyzing the External Environment of
your business is to identify opportunities relating to your area of
business or core competencies. This will enable you to
strategise as to how your business can capitalize on the identified
opportunities. An analysis of the External Environment also helps you
identify threats that are external to your business. You may not be
able to directly change the threats but you might be able to mitigate
the identified threats.
The External Environment is an analysis of what is commonly referred to as PESTLE which is an acronym for:
You can use this (PESTLE) as a framework to ensure that you have covered all the possible aspects about the External Environment. Political Changes
Economic Changes
Social Changes
Technology Changes Changes in technology that can support or affect:
Ecological, Ethical or Environmental Changes
Legislative Changes
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