In this project, you are presenting a report document. The expectation is that the report provides the level of details to help the audience grasp the main topics and to understand and complete the External Environmental Analysis.
Analysis is the operative word. In analyzing the external environment, you are expected to thoroughly research and take that research and break it into small parts to gain a better understanding of what is happening in the external environment of the business. In researching an industry, it is important to understand that every company within an industry is different so gathering information on one company does not mean that the collected information is relevant to other company within that industry. When researching, parsing the material is critical to an accurate analysis. Avoid presenting just any information as that may lead to using irrelevant information.
Perform a Porter’s Five Forces analysis on the organization’s industry and the focal company in particular. The industry is the global industry. First, use the course materials to identify the five forces and what components make up each force. Then, perform an analysis of each force that clearly discusses the ‘why and how’ and concludes with the effect of the given force on the fortunes of the industry (industry profitability) and/or industry dynamics; that is whether the effect of the force on the industry is weak/modest/average/moderate or strong/severe and also on the focal company. You may not use a Porter’s Five Forces analysis that is already completed and available on the Internet. A zero will result if used as the analysis has to be the result of your research and your own development.
Perform a Competitive Analysis using the focal company’s closest three competitors plus the selected company. Explain why these companies are competitors. Analyze the competition’s products and services explaining features, value, targets, etc. What are the competition’s strengths and weaknesses and what is the market outlook for the competition?
Identify and discuss at least eight (8) key success factors (critical success factors). Each industry has different key success factors so make sure the success factors fit the industry. Review the Competitive Profile Matrix Example under week 3 Content for clarification.
Develop a Competitor Profile Matrix (CPM). Explain how you developed the matrix. Make sure to support your reasoning.
SWOT analysis is a tool used to assess the strengths and weaknesses (internal environment) and the opportunities and threats (external environment) of an organization. You will complete a partial SWOT analysis only completing an analysis on the OT (Opportunities and Threats). The information presented is not based on your beliefs but on fact-based, data-driven information. The items used in the OT are factors that are affecting or might affect the focal company or those companies within the identified industry.
Develop an OT table using your research to identify at least five (5) opportunities and five (5) threats that influence the industry and the focal company. Make sure to cite the elements within the table.
Perform an OT analysis (separate from SWOT table).
You may not use a SWOT analysis that is already completed and available on the Internet. The OT is for the focal company and no other company. A zero will result if used as the analysis has to be the result of your research and your own development. NOTE: A matrix is a table. It is not an analysis.
Step 7: External Factor Evaluation (EFE) Analysis
The External Factor Evaluation (EFE) matrix will allow you to use the information from the industry analysis and the competitive analysis to assess whether the focal company is able to effectively take advantage of existing opportunities while minimizing the identified external threats that will help you formulate new strategies and policies. You will use the opportunities and threats from the OT analysis.
Using the information gathered for the OT analysis, develop an EFE matrix using five (5) opportunities and five (5) threats. Discuss how you developed the EFE matrix and the outcome. Make sure to support your reasoning.
Step 8: Conclusion
Create a concluding paragraph. The Conclusion is intended to emphasize the purpose/significance of the analysis, emphasize the significance/consequence of findings, and indicate the wider applications that are derived from the main points of the project’s requirements. You will draw conclusions about the findings of the external environment analysis.