Strategic Management QUESTION Studying the external environment is a crucial step in mapping the business strategy for an organization. Discuss how the evaluation of external forces can be performed with business examples to support your analysis. PAGE CONTENTS 1 . Questionnaire 22. Introduction 33. PEST Analysis 4(3.1) Political-legal environment 4(3.2) Economic environment 4(3.3) Social environment 5(3.4) Technological environment 54. Sector analysis 55. Michael Porter's five forces 6(5.1 ) Threat of new entrants 7(5.2) Rivalry of existing firms 7(5.3) Threats of substitutes 7(5.4) Bargaining power of the buyer 8(5.5) Bargaining power of suppliers 96. Conclusion 97. Bibliography 108. References 10IntroductionThe business environment it is an element that influences all the activities of an organization. Furthermore, it will bring both opportunities and threats to businesses due to its uncertainties. The business environment is uncertain, complex and dynamic; the organization should apply more flexibility and discontinuity methods to manage them. A company cannot control the environment because it is unpredictable in its direction and speed of change, such as interest rates, inflation rate, and exchange rate. The business environment can be classified into two categories: internal environment and external environment. Internal factors close to the company that have a direct impact on the organization's strategy, these factors include employees, customers, suppliers, shareholders, bankers etc. The external environment includes those factors and trends external to the organization that could have an influence on an organization and its future. Many external factors can have an effect on an organisation: from changes in government legislation to the entry of new competitors into the market….middle of paper……; plus the fact that your supplier realizes that you can do it and therefore must respond accordingly Bibliography: http://IMBA 702 Cases.htm Strategic Management and Corporate Policy Entering the 21st Century Global Society (Sixth Edition) ? Thomas L. Wheelen and J.David Hunger http ://www.Marketing Environment.htmReferences:Strategic Management and Corporate Policy Entering the 21st Century Global Society (Sixth Edition) ?Thomas L. Wheelen and J.David HungerCorporate Policy and Management strategy (fifth edition) ?Lawrence R. Jauch and William F .Glueck.Management of Business for GCE A Level and LCCI (2nd edition) ?Vincent GabrielManagement (third edition) ?Kathryn M Bartol and David C MartinAwareness and possibilities of strategic management ( third edition) ?John L ThompsonStrategic Management Theory and Practice ?GACole BA MA MIPD MIMgt, Strategic Management (International Edition) ?Alex Miller Gregory G.DessStrategic Management (McGRAW-HILL International Edition) ?Gregory G.Dess and Alex Millerhttp:/ /www. Porter's Five Forces.htmhttp://www.IMBA 702 Cases.htmhttp://www.Marketing Environment.htmhttp://www. Business Competition.htmhttp://Activity 1 - PESTEL Analysis.htm