A tool to determine a business standpoint in access of its challenges, opportunity, obstacles, and competitor which fully focus on the external environment.
Stable political situation in country creates a path to successful operation of a business. Political changes in sense of Government law enforcement give an impact in whatsoever business. Company requires more physical work which needs many workmen at job site to construct swimming pool. Government implement on new rule to restrict the numbers of foreign workers in country, some of the existing workers forced to sent back to their own country where they are not allowed to extend their passport or stay longer in this country. Since company depends on foreign workers, it causes difficult time to hire new or alternative workers, forced to pay higher agency fee, other problems like workers experience might not match the job requirement or even they are not valid to stay longer in this country.
Inflation or economy crisis will affect the business cycle. This situation can force big organization that build pools for their apartment, hotel, and university might slow down their projects due to poor cash movement or even house pool owners drag their payment causes company to face cash shortage and difficult moment for enrolment. Inflation causes exchange rate to be higher where company needs to pay more when import goods from overseas and charge that cost on selling price to customer in some unavoidable cases. In this situation, customer mood might change and their confidence level might drop to build swimming pool or request for special discount or even demand for more payment terms. Besides this, company might also cut down the numbers of workmen and overtime pay. The monetary policy of bank might affect where banks might increase the interest rates for any loans given. This critical situation must be overcome by good internal planning of company to avoid...
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