To be able to determine the most appropriate strategies it is essential to identify from the outset the boundaries of the territory in which the company has decided to act. Moreover, it is probably also necessary to draw a map identifying the different areas within these boundaries so as to understand their various features, keeping in mind the space-time coordinates. Bear in mind that the original environment will be subject to modifications over time.
During the analysis phase you should gather the basic information which is indispensable in making the decisions which follow and which constitutes the basis of future activities.
The external factors that the company must deal with are as follows:
- details of the environment in which the company is operating
- the sector
- the competitors
- the purchasing behaviour of potential customers.
Analysis of these external factors enables you, on the one hand to increase your knowledge of the target market and on the other hand to compare the resources of the company with those available in the industrial sector to which it belongs.
The external environment has two aspects: the macro-environment that affects all companies and a micro-environment that affects only the firms in a particular industry.