What are the main methods of environmental analysis

The method of environmental analysis often adopts "SWOT analysis".

"SWOT analysis" is a method of synthesizing and summarizing the internal and external conditions of the enterprise, and then analyzing the strengths and weaknesses of the organization, and the opportunities and threats it faces. It is expressed as follows:

"S" - Strength

"W" - Weakness. -"W"-Weakness

"O"-Opportunity

"T "-Threats

While Strengths (S) and Weaknesses (W) analyze the company's own strengths and their comparison with competitors, Opportunities (O) and Threats (T) focus on the changes in the external environment and their possible impact on the company. on the firm.

(2) "PEST" Analysis Method

"PEST" is a kind of macro-environmental analysis model. It is labeled as follows:

"P"-Political

"E"-Economic

"E"-Economic,"

"E"-Economic,"

"E"-Economic. - Economic,

"S" - Social

"T" -Technological (science and technology).

These are the external environment of the enterprise, which is generally not mastered by the enterprise, and these factors are also jokingly called "pest"

Changes in the macro-environment require that business managers must carefully analyze the impacts of changes in political and legal environments, economic environments, technological environments, and social and cultural environments, and clearly define their own business strategies when choosing business strategies. environment and other factors changes in the impact of clear opportunities and crises facing the enterprise itself, in order to utilize the opportunities to avoid or eliminate the crisis.

Only by grasping the trend of the macro-environmental development can an enterprise make the best decision in the specialized management and diversified development.

The macro-environment refers to a variety of factors in the environment that will have an impact on the business management activities of all enterprises, which need to be analyzed in terms of the political and legal environment, economic environment, technological environment, social and cultural environment, and so on, in order to find out the impact of these factors on the business strategy of the enterprise.

Political and legal environment refers to the actual and potential impact on the enterprise production and management activities of political forces and production and management activities on the enterprise to restrict and require the laws and regulations and other factors. In the choice of business strategy, the first thing to consider is the stability and security of the political situation in the country and region where the enterprise is to be invested, on this basis, we should consider the government's support for the development of the local economy and the efficiency of government work.

In order to promote the development of the local economy, generally speaking, the host country and local government will introduce a series of preferential policies to attract investors, to provide enterprises with high-quality, efficient administrative services, and effectively protect the interests of enterprises. However, in some countries and regions, enterprises may also encounter some local government departments with bureaucracy, too much direct intervention, low efficiency, and serious local protectionism.

Enterprises should choose a political environment that is stable and secure, and can provide efficient and quality services. The internationalized enterprises also need to consider the policies and attitudes of the target countries towards foreign enterprises and foreign goods.