In this article we describe the External Analysis, which provides insight into the opportunities and threats within a business environment.

What is the External Analysis?

External Analysis is the analysis of the external environment and provides insight into the opportunities and threats within a business environment. This forms the input for a SWOT Analysis on which the ultimate strategy of a business is based. Together with the Internal Analysis, it forms the Situational Analysis.

Why an External Analysis?

By choosing characteristics out of the business environment as basis for a long term strategy, a company is enabled to reach a good balance between supply and demand. Thereby, a company can well respond to the client’s wants and needs.

How do I conduct an External Analysis?

The CICD Analysis and DESTEP offer a good structure to map out all important facets of the external business environment.Click on the link for more information.

MESO environment

In this article we describe the CICD Analysis, which provides insight into the external environment and thus the opportunities and threats within a business environment.

Customer Analysis is used in order to map out the external environment of a business. It is a component of Situational Analysis, CICD Analysis and External Analysis. The output from Customer Analysis serves as input for SWOT Analysis.

Industry Analysis is used in order to map out the external environment of a business. It is a component of Situational Analysis, CICD Analysis and External Analysis. The output from the Industry Analysis serves as input for SWOT Analysis.

Competitor Analysis is used in order to map out the external environment of a business. It is a component of Situational Analysis, CICD Analysis and External Analysis. The output from Competitor Analysis serves as input for SWOT Analysis

MACRO environment

Analysis DESTEP is an abbreviation for demographic, economic, social/cultural, technological, ecological and political/judicial factors. It is a tool with which a picture of the external (macro) environment where a given organisation is active can be obtained.