TULIAO, Maria Athena E.

4LM
IBE18
EXTERNAL ANALYSIS
The external analysis is the process of scanning and evaluating an
organizations various external environmental sectors to determine positive
and negative trends that could impact the organizational performance. The
external analysis is used to formulate companys strategic decisions, which
are influenced, by a number of factors. The external environment is being
observed to effectively and competently carrry out company strategies.
The external analysis includes the General Environment, Industry Analysis
and Competitive Analysis. The General Environment comprises the Social,
Cultural

and

Demographic

Environment,

Technological

Environment,

Economic Environment and Political, Government and Legal Environment.

The Industry Analysis refers to the Threat of New Entrants, Rivalry Among
Competitors, Threat of Substitutes, Bargaining Power of Suppliers and the
Bargaining Power of Buyers. Competitive Analysis includes the profile of the
competitors and the Competitive Profile Matrix (CPM).
As a whole, the companys external factors are assessed through its key
opportunities and threats. An External Factor Evaluation (EFE) Matrix is
formulated to arrive at a company recommended strategies for SEAOIL
Philippines, Inc.