1. Definition : An analysis and evaluation process that businesses use to understand their current environment

2.  The global environment refers to the macro-level which comprises industries, markets, companies, clients and competitors in general.  On the micro-level are other factors such as suppliers, vendors and local customers and competitors are analyzed within the industry analysis.

5.  What is the current external environment (data and situations) of a business?  What are the implications of these issues for business?  What key forces in the business’s environment need to be addressed  and which ones are less important?

6.  What trends and issues are affecting business?  What is the impact of the trends on business?  How might the environment change in the future?  How will businesses’ decisions and actions influence this environment?

7.  How do customers, interest groups, community organizations, agencies or governments impact the environment?  Are there any events on the horizon to be dealt with?  What factors are within a business’s control and which are beyond its influence?  What could a business do to affect the impact of these factors?

8.  Political factors Taxation Policy Trade regulations Governmental stability Unemployment Policy etc.  Economical factors Inflation rate Growth in spending power Rate of people in a pensionable age Recession or Boom Customer liquidations

9.  Socio-cultural age distribution. education levels. income level. consumerism. diet & nutrition. population growth life expectancies Religion  Technological factors Internet E-commerce Social Media

10.  Environmental factors  Laws on  Waste disposal  Energy consumption  Pollution monitoring etc.  Legal factors  Unemployment law  Health and safety  Product safety  Advertising regulations  Product labeling  labor laws etc.

11.  Ecology  affects customer's buying habits.  affect the firm production process.  Potential supplies  labor supply  quantity of labor available.  quality of labor available.  material suppliers.  delivery delay.  level of competition to suppliers,  service provider.  special requirement.

12. Examples:  Interviews with business officers, owners, managers  Comments made by business officers, owners, managers  National and local newspapers  Trade publications  Business magazines  Websites: Hoover’s, Morningstar, brokerage firms, credible financial sites  Personal Observations  Research findings (county demographic & census information and state records.)  Input from professional organizations

13.  Aids in anticipating changes  Answers the question, “Where are we now?”  Provides a starting point for businesses’ planning of goals, objectives, and actions that answer the question, “Where do we want to be?”

14.  Search for local demographic and census information to find out the general age, income, educational and employment factors for the area.  Check out various resources for any new building or economics changes coming. This can be personal interviews or news searches.  Have there been any new votes or laws passed that will change business in the area?  Look for trends in population such as aging or new growing families for the area

15.  Create a list of potential / available customer groups. (both major and minor.)  Create a list of direct competitors (both major and minor.)  Next create a list of businesses competing for the same customer dollars but not necessarily the same business.