Identify what is/are the core issue(s). State these issues clearly.
- Ways of expanding retail operations in China
- Whether Baleno should continue to expand its operations in China through franchising
1) Analyze the general external issues affecting the firm (focus on trends in the 6 segments – objective: predict the segments that you expect to have the most significant influence on the firm over the next several years (3-5yrs) and to explain your reasoning for your predictions)
Analyze all 3 levels of external environment (general, industry, and competitor).
Use business fundamentals to support your analysis. Remember that external environment analysis is from the perspective of the external environment and NOT from the perspective of the company. For each of the external environmental factors, determine if it is an opportunity or threat.
Sub-conclude after each level of the external environment analysis.
Provide a main conclusion of the external environment at the end of the external environment analysis.
Firms cannot directly control these segments, however, these segments are influencing the actions the firms are taking.
On the basis of the information found on the external environment, firms take actions, such as building new capabilities and core competencies, in hopes of buffering themselves from any negative environmental effects and to pursue opportunities as the basis for better serving their stakeholders’ needs.
Successful firms learn how to gather the information needed to understand all segments of the external environment and their implications for selecting and implementing the firm’s strategies.
An opportunity is a condition in the general environment that, if exploited effectively, helps a company achieve strategic competitiveness.
A threat is a condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness
General Environment