Strategic ManagementQUESTIONThe study of the external environment is a crucial step in developing an organization's business strategy. Discuss how assessing external forces can be done with business examples to support your analysis.CONTENT PAGE 1. Question Paper 22. Introduction 33. PEST Analysis 4(3.1) Political and Legal Environment 4(3.2) Economic Environment 4(3.3) Social Environment 5(3.4) Technological Environment 54. Industrial Analysis 55. Michael Porter's Five Forces 6( 5.1) Threat of new entrants 7(5.2) Rivalry of existing companies 7(5.3) Threats of substitutes 7(5.4) Bargaining power of buyer 8(5.5) Bargaining power of suppliers 96. Conclusion 97. Bibliography 108. References 10IntroductionThe business environment is an element that affects all activities of an organization. Furthermore, it will bring businesses both opportunities and threats due to its uncertainties. The business environment is uncertain, complex and dynamic; the organization should apply more flexibility and discontinuity methods to manage them. A business cannot control the environment because it is unpredictable in its direction and speed of change, such as interest rates, inflation rate, and exchange rate. The business environment can be classified into two categories: the internal environment and the external environment. Internal factors close to the company that have a direct impact on the organization's strategy. These factors include employees, customers, suppliers, shareholders, banker, etc. The external environment includes factors and trends outside the organization that could have an influence on an organization and its future. Many external factors can have an effect on an organization - from changes in government legislation to the entry of new competitors into a market....... middle of paper ......; plus the fact that your supplier realizes that you can do this and therefore must respond accordingly. ://www.Marketing Environment.htmReferences: Strategic Management and Business Policy in the 21st Century Global Society (Sixth Edition)?Thomas L. Wheelen and J.David HungerBusiness Policy and Strategic Management (Fifth Edition)?Lawrence R. Jauch and William F .Glueck.Management of Business for GCE A Level & LCCI (2nd Edition)?Vincent GabrielManagement (Third Edition)?Kathryn M Bartol & David C MartinStrategic Management Awareness and Chance (Third Edition)?John L ThompsonTheory and practice of strategic management?GACole BA MA MIPD MIMgt, Strategic management (international edition)?Alex Miller Gregory G.DessStrategic management (McGRAW-HILL International Edition)?Gregory G.Dess and Alex Millerhttp://www. Porter's Five Forces.htmhttp://www.IMBA 702 Cases.htmhttp://www.Marketing Environment.htmhttp://www. Business Competition.htmhttp://Activity 1 - PESTEL analysis.htm