Capturing the relevant insights from the environment is necessary for delivering value The insights gained will

l also help formulate the right strategies Opportunities and threats lie in the environment Objective of environment analysis is facilitating company s strategic response to the happenings in the environment

Macro environment(country/region/global) Micro environment(specific to the business )

Social , Economic , Technological , Legal, Political etc Popularly known as SLEPT

Competitors , suppliers , customers , industry etc

1.Economic Environment

General economic conditions Economic conditions of different strata of the population Overall growth as also sector specific Interest rates and credit availability Savings Inflation Foreign Exchange Reserves Exchange rates Tax rates

2.Socio-Cultural

Religion Language Social class Values Beliefs Traditions Lifestyles Social class(Income , occupation , location of living etc)

3.Natural Environment

Natural resources Ecology(environmental pollution , bio-diversity) Climate(rain fall , rivers , ocean-wealth)

4.Technological Impact of technology

A. Corporate Level
       

Production processes Logistics Communications Data processing Entertainment Music Education Health care

B. Individual Level

5.Legal

Corporate affairs Controls on trade practices Consumer protection Employee protection

6.Political Form of government Political stability NGOs/Religious organizations Media

7.Demographic Population (size , growth) Age distribution Literacy Religious composition Workforce(Skilled/semi-skilled/un sklilled) House hold patterns Population shifts etc

Market/ Demand Consumer Industry/Competition Government policies specific to the industry Suppliers

Environmental Issues Child labor Gender equality Human rights PETA Clinical trials