Professional Documents
Culture Documents
The key external factors can vary overtime and by industry. Freund emphasized
that these key external factors should be;
a) Important to achieving long-term and annual objectives;
b) Measurable;
c) Applicable to all competing firms and;
d) Hierarchical in the sense that some will pertain to the overall company and
others will be more narrowly focused on functional or divisional areas.
A final list of the most important key external factors should be communicated and
distributed widely in the organization. Both opportunities and threats can be key
external factors.
directed more toward economic and technical affairs of the firm. Strategists today are
spending more time anticipating and influencing public policy actions. They spend more
time meeting with government officials, attending hearings and government-sponsored
conferences, giving public speeches and meeting with trade groups, industry
associations and government agency directors.
Increasing global competition accents the need for accurate political,
governmental, and legal forecasts. Many strategists will have to become familiar with
political systems in Europe, Africa and Asia and with trading currency features. A world
market has emerged from what previously was a multitude of distinct national markets
and the climate for international business today is much more favorable than yesterday.
Mass communication and high technology are creating similar patterns of consumption
in diverse cultures worldwide. This means that many companies may find it difficult to
survive by relying solely on domestic markets. Some are the key Political, Governmental
and Legal variables;
Changes in tax laws
Tariffs
Government regulations and deregulations
Environmental protection laws
Size of government budgets
World oil, currency and labor markets
Import-export regulations
4. Technological Forces
5. Competitive Forces