Externa Environment Analysis

Addis Ababa University
School of Graduate Studies
School of Business and Public Administration
Department of Accounting and Finance

Module: Business Policy and Strategic Management
Group Assignment on:
External Environment Analysis
Prepared by:
Abdeta Debela   GSR/0187/02
Abdurehman Aliyi   GSR/2336/02
Amsalu Gelaneh   GSR/0189/02
Mesaud Muhamed GSR/0204/02
Muhammed Aragie GSR/0206/02
Naod Mekonnen GSR/2338/02
Tibebu Tefera GSR/0213/02
Submitted to:
Matiwos Ensermu (PhD)

March 2011
Contents
1. Introduction 1
2. External environment 2
2.1. Analyzing the external environment 4
3. Mapping external environment for global firm 8
3.1. Factors of External environment in constructing strategy for global firm 8
3.2. Global business strategy 9
4. Industry Analysis 11
4.1. Why is industry analysis important? 12
4.2. A model for industry analysis (Porter’s five forces model) 13
5. Competitive Analysis 18
6. Supply chains analysis 22
6.1. Definition of Concepts 22
6.2. The Importance of Supply Chain Analysis 23
6.3. How value chain analysis has been used 24
6.4. Analyzing and Evaluating Value Chains 24
6.5. Porter supply chain model 24
6.6. Creating a cost advantage based on the value chain 25
7. SWOT analysis 27
7.1. Internal factors- strength and weakness 28
7.2. External factors- opportunities and threats 28
8. Conclusion 30
Reference 32

  1. Introduction
Environmental influences and how to deal with them plays a key role in strategic management. Because in today’s changing environment, organizations might be affected negatively or positively from the changes. The changes could be emanated from the external environment or internal environment in which the organizations operate; hence no organization exists without the interaction of its environment. Thus, the interaction with the environment provides multiple contexts that influence how the organization operates and how and what it... [continues]

Read full essay