1. What is meant by the term “External Analysis‟? What
is the purpose of “PESTLE” analysis?
External analysis is the analysis of all the factors
outside the organization which provide opportunity or pose threats to the
organization. The external factors of the organization consists of individuals,
groups, agencies, organizations, events, conditions and forces with which the
organization comes into frequent contact in the course of its functioning (I. o. C. A. o., 2010).
The term "PESTLE" analysis is used to
describe a framework for analysis of external environmental factors. PESTLE
analysis involves identifying the political, economic, socio-cultural,
technological, legal and environmental influences on an organization and
providing a way of examining the environment influences that have affected or
are likely to affect an organization or its policy (I. o. C. A. o., 2010).
2. Read the article about Big Mart Super Store – what
external issues are the Super Markets would have to consider at this time to
have competitive advantage over others?
External issues that Big Mart Super Store would have to consider at this
time to have competitive advantage are:
Political factors: With increasing number of strikes by different
political parties, it would be hard for Big Mart to operate their store
efficiently. There might also be pressure from trade unions associated with
various political parties.
Economic factors: As Big Mart is planning to open seven new stores
within the city they might require more capital which means they might take
loans from some financial institutions and with the increase in rate of
interest they might bear some extra pressure.
Socio-Cultural Factors: As they are trying to cater the demand of people
from all the economic groups they must bring different varieties of products.
Likewise, they must be diversifying the products so that every age group people
could consume it.
Technological Factors: As Big Mart is known for the availability of
quality foods, to maintain this status they might bring some modern machinery
which could keep these foods fresh and maintain quality. Likewise with the
introduction of meat in their store they take care of quality management in
these products. They can also introduce modern teller machine which could
reduce the queue of people in the cashier counter.
3. Discuss your preparations for the Activity Week
field work. Have you arranged to meet your group? Have you been to the Big Mart
before? How are you planning to record your data?
Yes, I have made an arrangement to meet my group and
discuss about the preparation for the activity week. And I have already been to
Big Mart before so it would be easy. We are planning to record our data in
following ways:
·
Making a set of questionnaires related with our discussion.
·
Gathering information from staffs and manager.
·
Observing consumers whether they are satisfied or not.
·
Getting information from secondary sources.
References:
India, I. o. C. A. o., 2010. Strategic Management. New
Delhi: Sahitya Bhawan Publications.
My Strategic Plan (2013). External Analysis. Available from (http://mystrategicplan.com/resources/external-analysis/) [accessed in 28-03-2013]
Small Business (2013). Chron. Available from (http://smallbusiness.chron.com/reason-use-swot-pestle-analysis-40810.html) [accessed in 28-03-2013]
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