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Actions in Unfavorable External Environment?

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Mukisa Simon Peter
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Mukisa Simon Peter
Teacher, Uganda

Actions in Unfavorable External Environment?

When do I realize that the environment I am operating in is not favorable to my organization? And what should be the immediate response?

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  Jaap de Jonge
2
Jaap de Jonge
Editor, Netherlands
 

What to do if External Environment is Unfavorable?

I understand your question is what a company should do if it finds out (by doing a PEST analysis or similar) that the external environment is not favorable to this firm.
Well, it goes without saying that this company should not invest heavily in that market at least at the moment. But beyond that there is no simple answer to this question.
It depends first of all on which are the main factors causing the unfavorable environment (P, E, S or T). And also what things inside each main factor are causing the unfavorable environment. And how long this situation is expected to last. And the relationships between all of these things.
Also the company would need to combine these conclusions about the external environment with its own position (think along SWOT analysis).
In short, further strategic analysis is needed. This will then allow the firm to make the right strategic decisions.

 

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More on PEST Analysis
topic PEST Analysis for a Country
topic External Environment of a Service Company
topic PEST Analysis is Complementary to SWOT Analysis
🔥 PEST Analysis: a Mandatory Component of Strategic Planning and Marketing!
topic Market and System Risk in PEST Analysis
topic Extension of PESTEL + C (=Competitors) Analysis
topic Advanced form of PEST: PESTELEM Analysis
👀Actions in Unfavorable External Environment?
topic Direct and Indirect External Environment of the Firm
topic How to Conduct a PEST Analysis? Main Steps and Tips
topic The SPELIT Power Matrix
topic Improved PESTLE Analysis: SATERPLIDE Analysis
topic PEST Analysis on Retail
topic Other Marketing Environment Tools
topic History of PEST - Origins and Author
topic Interaction Between an Organization and Its Energy Environment?
topic Environmental Factors in PESTLE
Special Interest Group
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