While frameworks do exist to aid in environmental analysis, it is important to understand that they are simply frameworks to orient the user toward a more precise understanding of the business environment; they are by no means necessary.
While the obvious answer is "they are all disasters," sorry Miley fansfrom the viewpoint of strategy execution, there is another common thread: Besides the physical devastation in Japan itself, there were less obvious effects to business from the tsunami - but it did affect the market for computers and cell phones as many of the microchips we rely on for our gadgets were destroyed, causing fulfillment delays, product shortages, and lost sales.
And while there appear to be no defenses against these external forces, by keeping abreast of them and by monitoring trends, you can remain nimble enough to adjust to and even capitalize on them.
But you have to know what to change, and this includes keeping an eye out for the following important external factors and trends.
The Economy Sales depend on the wealth of a population, or at the very least, on the ability for that population to borrow money to make their purchases credit. This could mean layoffs and other cost-cutting measures, price reductions to increase sales volume etc.
On the other hand, when the economy picks up, it might be time to borrow to improve your IT infrastructure, put the pedal to the metal in regards to your marketing efforts, and spend big to hire top executives and salespeople.
Credit availability, interest rates, manufacturing indexes, inventory figures, housing stats - all of these indicators have been thoroughly discussed on leading business and government periodicals and publications such as the Wall Street JournalBloombergthe U.
Bureau of Economic Analysisand the Conference Board. Cultural Shifts The society we live in and its culture dictate our personal values to a large degree, and these values are what drive our day to day decisions - including the types of products we buy, the places we go, and the services we use.
Shifts in culture, therefore, drive the demand for new gadgets, clothing, food did you even hear of gluten-free food or Paleo diets 5 years ago? This means you need to pay attention to trends and fads, as silly or distasteful as some of them may seem. As an example, social media took the world by storm, but to this day many business people dismiss Snapchat and Instagram as silly platforms mostly for bored teens, while forward-looking firms are set to make a killing by engaging with consumers through them.
Here is an excellent list of trend-spotting tools by Wordtracker. Politics A potentially contentious, yet extremely important subject to consider when it comes to your company strategy is the political climate.
This embodies everything from intellectual property laws to zoning restrictions to antitrust laws to employee and consumer protection regulations. There are practically zero aspects of business that are not directly impacted by the politics of where the business is located.
Government intervention can also create a market, such as the medical marijuana one in California or recreational one in Colorado - or practically destroy it, as in the case of alcohol during the Prohibition.
As a business owner or executive, it behooves you to get connected with your local politicians to stay informed of changes which could impact your bottom line…before they become costly surprises.
Technology Technology, especially when widely adopted rapidly, is always a major disruptor and game-changer, and there are many examples of industry leaders who ignored technological change and suffered greatly for it.
Consider the effect of MP3s on the music industry. Or how about Blockbuster? The once ubiquitous chain that is all but shuttered today, all because they completely ignored video streaming. Nature Last but certainly not least, is Mother Nature.
This is the least predictable factor of all, and that lack of predictability should be accounted for in your strategy some way. Not having earthquake insurance in California for an office building would be extremely bad strategy, for example. Similarly, flood insurance is a must in hurricane-prone zones.
While nature itself is out of your control, you can still take steps to minimize or prevent losses. For instance, when businesses are perceived as having a negative impact on the natural environment around them. The global warming controversy could also play a part if your strategic planning, as politicians consider carbon taxes and other measures.
In short, the point of this post is to encourage you to avoid tunnel vision and keep an eye out for the factors that can impact your strategy despite being external to your organization and out of your control. For ideas on how to cope with change, we suggest you watch Gary explain how to manage complexity in a world where you seem to have little control: This blog has received prestigious awards for leadership and management and has been syndicated by several major media sources.Environmental trends affecting international strategy.
This is a group project. My part just is urbanagricultureinitiative.coms for an international strategy. 2 Environmental trends affecting international strategy urbanagricultureinitiative.com modes for entering international markets urbanagricultureinitiative.com major risks of international diversification.
FACTORS TO CONSIDER FOR INTERNATIONAL MARKETING. International marketing is very different from domestic marketing.
There are a whole host of issues when marketing internationally that a business does not normally have to deal with when marketing in their own country.
the environmental strategy's holistic approach This modular approach along the entire value chain also helps to ensure that we can track a product’s environmental impact throughout its lifecycle, from production through the usage phase, down to recycling.
Staying Ahead of the Curve: Four Environmental Trends to Watch by Corporate Relations and Business Strategy Staff In the hustle and bustle of daily life, it is often difficult to find time to step back and look at the bigger picture.
Environment: Pioneering Sustainable Solutions As a company that relies on agricultural products, we have long been aware that the planet is our most important business partner. Our comprehensive approach to reducing our environmental impact means looking at all aspects of our business, how.
Prodded by accelerating technology advances, some companies have begun to rethink their growth strategies, finding new ways to benefit from mergers and acquisitions, digital products and services, and even political forces affecting global trade.