The advantages and disadvantages of business environmental

analysis

what is BE analysis

Purpose of BE analysis

Internal and external factors

Types of BE analysis

Using the SWOT method procedure

Advantages

Disadvantages

Conclusion

What is business environmental analysis?

· It is the study of the internal and external factors related to a business to determine how such
factors affect the business.

· The effect of such factors may either be positive or negative.

· These factors include competition, consumers, location and government regulations.

· By understanding these factors, a business can develop strategies to optimize its performance.

· Determining short-term and long-term impacts, organizations can readily respond to them when
they appear.

Purpose of Business environmental analysis

· An environmental analysis helps organizations define factors that can influence their
 business operations.

· By assessing and weighing these factors, business leaders can make better decisions
moving forward.

· Additionally, environmental analysis can help business leaders anticipate changes in the
market and adjust their strategies accordingly.

· Without it, the business would be unprepared for what is to come and wouldn't be able
to survive in its own environment.

Internal and External Factors

· Internal factors are all about organizations looking inwards.

· it examines how the business is doing currently and what can be done to improve things.

· This includes organizational culture, business processes, human resources, mission and
vision.

· On the other hand, external factors are all about what's happening in the business
environment. this includes

1. Industry and market trends

2. Economic conditions

3. Political landscape

4. Social trends

5. Technological advancements

· All of these can greatly impact how business is done and how successful an organization
can be.

Types of Environmental Analysis

PESTLE analysis
· Pestle analysis is a framework that helps organizations assess the factors which can
 influence their business on a larger scale outside the organization.

· It provides important insights into the market status based on relevant trends
concerning the market, technology, customers and more.

· This way of analysis only focuses on the external factors of the business.

· PESTLE has 6 key elements -

6. Political

7. Economical

8. Social

9. Technological

10. Legal

11. Environmental

SWOT analysis
· It's an approach that helps business leaders identify the Strengths, Weaknesses,
Opportunities and Threats facing their organization.

· Unlike the PESTLE method, this includes both internal and external factors.

· Strengths and Weaknesses are internal factors that are within the organization's control. On the
other hand, Opportunities and Threats are external factors that are out of the organization's
control.

· By understanding these 4 elements, business leaders can develop strategies to take advantage
of opportunities and avoid threats while working on improving their weaknesses.

Using SWOT analysis on Starbucks

Strengths

12. Strong brand image - Starbucks is the most popular and strongest brand in the
food and beverage industry. Its size, volume and number of loyal customers have kept
growing over time. It has a brand value of $13 billion.
13. Extensive international supply chain - Starbucks is known to have an extensive
global network of suppliers. They source their coffee beans from three coffee producing
regions Latin America, Africa and Asia-pacific.

14.