External Environmental Analysis
Purpose This project is the first of four projects. This project provides the first steps in completing an external environmental analysis of your focal company’s strategic management plan. You will use tools and apply concepts learned in this and previous business courses to demonstrate an understanding of how organizations develop and manage strategies to establish, safeguard and sustain their competitive position in the 21st century (rapidly evolving/shifting/changing), uncertain hyper-competitive business environment. Completing a company overview and assessing the general environment is key in performing an external environment analysis. This project provides you with the opportunity to evaluate the competitive position of one of the organizations listed below and integrate that information into the beginnings of an external environmental analysis. The company you will be analyzing operates within the global market. Therefore, you will assess the company in terms of the global industry. Industries differ widely in their economic characteristics, competitive situation, and future profit potential. In this project, you are presenting a report document. The expectation is that the report provides details to help the audience grasp the main topics and understand the business climate. “Analysis” is the operative word. In analyzing the External Environmental Analysis, you are expected to thoroughly research the company. As part of that effort, you will need to take that research and break it into small parts to understand better what is happening in the external environment of the business. In researching an industry, it is important to understand that every company within an industry is different, so gathering information on one company does not mean that the collected information is relevant to other companies. When researching, parsing the material is critical to an accurate analysis. Avoid presenting just any information as that may lead to using irrelevant information. You will then write the report in your own words to share the external environmental analysis. You are expected to present information with supporting ideas and reasoning using the course material and your research. You will not lift any information from source documents without properly citing and referencing. For the technical analysis aspect of the project, you must create the technique on your own and may not use any source material that you happen to find. No work from a clearinghouse or similar website may be used or cited as a credible source. Outcomes Met With This Project- Utilize a set of useful analytical skills, tools, and techniques for analyzing a company strategically;
- Integrate ideas, concepts, and theories from previously taken functional courses including accounting, finance, market, business, and human resource management.
- Tesla, Inc. (NASDAQ: TLSA)
- Kraft Heinz (NASDAQ: KHC)Â
- Pfizer, Inc. (NYSE: PFE)
- General Motors Company (NYSE: GM)
- You are required to research information about the focal company and the external environment analysis for this project. You are accountable for using the course materials to support the ideas, reasoning, and conclusions made. Course material’s use goes beyond defining terms and explains the ‘why and how’ of a situation. Using one or two in-text citations from the course materials and then relying on Internet source material will not earn many points on the assignment.
- A variety of source material is expected, and what is presented must be relevant and applicable to the topic being discussed. Avoid merely making statements but close the loop of the discussion by explaining how something happens or why something happens, which focuses on importance and impact. In closing the loop, you will demonstrate the ability to think clearly and rationally, showing an understanding of the logical connections between the ideas presented from the research, the course material, and the question(s) being asked.
- On the main navigation bar in the classroom, select Resources and then select Library. Select Databases by Title (A – Z). Select M from the alphabet list, and then select Mergent Online. Dun and Bradstreet’s Hoovers Database, among others, is another excellent source for competitors and industry information. You are not to depend on one resource to complete the analysis. Moreover, it is impossible to complete Porter’s Five Forces, a competitive analysis, or an OT by using only the course material.
- You should not be using obscure articles, Glass Door, or Chron, or similar types of articles.
- Research for Financial Analysis:Â Financial Research.
- Research for Industry Analysis CSI Market.
- UMGC library is available for providing resources and services. Seek library support for excellence in your academic pursuit.
- Extensive library resources and services are available online, 24 hours a day, seven days a week at https://www.umgc.edu/library/index.cfm to support you in your studies. In addition, the UMGC Library provides research assistance in creating search strategies, selecting relevant databases, and evaluating and citing resources in a variety of formats via its “Ask a Librarian” service at https://www.umgc.edu/library/libask/index.cfm.
- Scholarly Research in OneSearch is allowed.
- To search for only scholarly resources, you are expected to place a checkmark in the space for “Scholarly journals only” before clicking search.
- Create a title page with the title, your name, date, the course number, and the instructor’s name.
- Create Topic Headings that correspond to the exact sections of the project requirements.
- Provide a company overview, which is an essential component of the strategic management process. The company overview includes the purpose(s) for the founding of the company (i.e., what problem(s) was it formed to solve and/or opportunities it was formed to exploit, who are the founders, home country or state, current management, employee headcount, last year’s revenue, etc.).
- Identify the global industry in which the company operates. This must come from Mergent Online.
- Discuss the company’s general environment by developing a PESTEL analysis.
- First, use the course material to identify the elements of the PESTEL and what components make up each element. Then, complete the analysis using research on the industry and the focal company. Be sure to present and support the reasoning for what is presented thoroughly. You may not use a PESTEL analysis that is already completed and available on the Internet. A zero will result if used as the analysis has to result from your research and your own development.
- NOTE:Â A PESTEL analysis is not a table, and it is not a bulleted assessment.
- Identify and discuss one key trend for each letter of the PESTEL for the industry. Key trends are separate from the PESTEL analysis.
- Select one of the six trends identified in the previous requirement and discuss how the selected trends could affect the focal company.
- Discuss key areas of uncertainty related to the identified trend for the focal company that could potentially impact the company’s strategy.
- Perform strategic analysis of the company’s mission, vision, and objectives.
- Create a conclusion. The Conclusion is intended to emphasize the purpose/significance of the analysis, emphasize the significance/consequence of findings, and indicate the wider applications derived from the main points of the project’s requirements. Finally, you will conclude the findings of the external environment analysis.