Strategic Management Analysis

The essay is to try to evaluate the view point: the external business environment is uncertain and dynamic all the time, it will changing with the micro environment. This kind of outside environment needs more effective applications of some analysis tools and frameworks such as PESTEL, Five Forces, Strategic Group Analysis, which are for the environmental analysis.

A clear definition of environment is the stuff that supports the survival tools of organizations. In the personal division, make customers satisfied with the service is to help firms to keep in environment; in the public division, the government, public facilities, citizens are similar to it as well. But it will be also some risks in the outer environment such as the financial crisis, inflation, the challenge of the competitors. As a result, the alteration of external environment could be serious for organizations. (ECS 54) There is the definition of the external environment: it the outer environment of a company such as political environment, social environment, technical environment and economic environment in general. This kind of environment can influence the inner manage strategies of an organization; it is also the outer manage environment of the firm.

Since the outer environment is altering all the time, and the controller of organizations should make the plans according to the outside situation, it is valuable to realize the future environment. The importance of external environment analysis is to distinguish and evaluate the outside develop trend and events which could not be controlled by the company. By the external environment analysis, the organization possibly will recognize clearly for the opportunities and threats that it is facing, and then formulate the business strategy correctly. Make an exact prediction for the alteration of external environment is a premise for making a successful strategy. It is suggested that it is possible to know about the future tendency, which is good for describing the possible request for a firm's future manufactured goods and service. And if the analyses are carried out in a correct way, lots of issues for firm's strategy which are unknown at this time are predictable as a matter of fact. (SUU P2)It will get rid of the management of an organization.

To acquire the situation of external environment, the organizations should expand their information channel, be focus on the outer market, and pay attention to competitors. As it claimed by Igor Ansoff (INS P3), there are five levels of turbulence; he has recognized a particular kind of strategies and capacities for success. These strategies and capacities shows some cost opportunities that included in appreciating the external environment. In the level 1, repetitive environment, the companies are ranked, structured and decision-making work. In level 2, expanding environment, companies are probable exploiting market share to operate at this level to reach

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