External Environment, Opportunities and Threats

An organization has little or no control over its environment but needs to constantly monitor and adapt to these external changes, a proactive or reactive response leads to significantly different outcome.

So, there is a need for the organization to set an environment analysis. Furthermore, a continuous process which includes the following: Scanning: Identifying early signals of environmental changes and trends Monitoring: Detecting meaning through ongoing observations of environmental changes and trends. Forecasting: Developing projections of anticipated outcomes based on monitored changes and trends. Assessing: Determining the timing and importance of environmental changes and trends for firms strategies and their management.

In assessing the External and internal environment of the organization, SWOT analysis takes place.

The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats. The SWOT analysis headings provide a good framework for reviewing strategy, position and direction of a company or business proposition, or any other idea. Moreover, SWOT analysis is used for business planning, strategic planning, competitor evaluation, marketing, business and product development and research reports.