External Forces and Trends Considerations

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What are the primary external organization considerations for the development of a strategic plan? Which consideration is the most important? Why? The primary external organization considerations are Remote environment, Industry Environment, and Operating Environment. The remote environment consists of economic environment, Industry Environment, and the Operating environment. The remote environment looks at how the economy is doing and if the economy can support the organizations product and or service. The social environment, which focuses on the demographic of the organizations consumer, who they are what they buy, their ethnic background, their hobbies, etc….. This better helps the organization to gear the product and or service to that group. It also consists of the political, technological, and Ecological environment. The Industry environment looks at the entry barriers, supplier power, buyer power, Substitute availability, and Competitive rivalry. Entry barriers range from the cost of entering the industry, laws that prohibit entry into the industry, to size of the industry. Supplier power is when a supplier can raise the price of a product but the manufacture may not be able to raise its price to the consumer based on the competitiveness in the industry The Operating environment looks at competitors, creditors, customers, labor, and suppliers. By looking at these thing an organization is able to better service its overall consumer by knowing who they are competing against, knowing where they can get capital from to produce it product and or service, knowing who they are trying to reach with their product and or service, having staff to produce the product and or service, and have a source to buy the materials needed to produce the product and or service. The operating environment is the most important. Is involves the core of the business you an organizations needs each one of the items listed in order to survive
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