External Factor for Business Evaluation

In: Business and Management

Submitted By pagodda2010
Words 2575
Pages 11
External Factor Evaluation Paper
Example 1: Dell Computer Key External Factors Opportunities Increasing demand for Speed, Memory and Graphic Capability Increasing demand for Portability Emergence and early popularity of "Tablet" Products Improving outlook for PC sales Increasing focus on cost reduction Increased Use of Wireless Technology Increase in Strategic Acquisition Increasing Demand for Green Products Threats Increase in Competition Increasing interest in longer battery life Expansion of Business Models to incorporate new lines of business (Related Diversification) as the core business matures Decline in Netbook Sales Total Analysis of the External Environment Every company deals with internal and external factors that affect their business. These external factors involve trends related to things such as oil price changes, political instability, government regulation and many more. External environment impacts every company; it’s all about how every company adjusts to external trends and prepares for them before they occur. The best companies always try to anticipate these external factors and respond strategically to them. There are two types of trends: the ones that can offer the company strategic opportunities and the ones that provide threats. By identifying opportunities and threats, companies can protect themselves from future harm and take advantage of opportunities as they emerge. There is a set 0.1 0.06 0.07 0.08 1 2 2 4 3 35 0.2 0.12 0.28 0.24 2.92 Weight Rating 0.1 0.08 0.12 0.07 0.1 0.07 0.07 0.08 2 3 3 4 4 2 2 4 Weighted Score 0.2 0.24 0.36 0.28 0.4 0.14 0.14 0.32

of trends common within an industry. Each of these forces has a different weight depending on the company, and is dealt with differently as well. Companies always differ on how they prioritize trends. Right now, there are two new major trends going on in the computer manufacturing…...

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