External Environment Assignment

Introduction

Environmental analysis is a strategic tool that examines the external and internal factors that affect the functioning of an organization. The aim of this analysis is to find out the extent of threats or opportunities factors present that might influence a business. Carrying out environmental evaluation is vital for decision making which is later translated in aligning an organization’s strategies with its environment.  External environment of an organization refers to factors outside an entity which have significant impact an organization’s growth and survival. With these factors present, an organization will have no or little control over them, however, it needs to always keep an eye on them and find ways to adapt to the changes brought by these external factors to survive. When evaluating the external environment of an organization, the common external influences usually include resources, technology, competition, customers, and socio-cultural factors (Harrison, 2007).