Introduction

This chapter will address a number of topics related to examining the external environment in which an organization exists. Along the way, a number of things will be investigated, but they can probably be summarized rather succinctly: virtually everything that happens or can happen outside of your company may have a significant impact on your future.

Does the above statement seem daunting? It should, but it should not cause you to panic unnecessarily. When you have finished with this chapter, you will have gained a greater appreciation for how interconnected so many variables may be. You will also see that even though this all seems like an impossible task to perform, there is some structure to it. Also, as if you needed to be told this, trying to predict future events carries with it a certain degree of risk. Therefore, although constructing strategies based on these predictions should be done with care, they most certainly should be done.

SWOT Analysis

As organizational strategists examine their organizations and environments, how do they determine what strategies are best? Is there some mechanism for examining the organization and environment such that important variables are identified and either maximized or minimized? Chapter 1 briefly touched on the concept of the SWOT analysis. At that time, the SWOT analysis was categorized as essentially a four-part analysis...