Concept and Nature of Environment and Auditing Environmental Influences



Concept and Nature of Environment


  • Environment shape the nature of competition and influence the availability of resources.
  • “Environment includes factors outside the firm which can lead to opportunities for or threats to firm.”- Jauch & Glueck
  • “Business environment is the aggregate of all the conditions, events and influences that surround and affect it.”- Keith Davis


Auditing Environmental Influences 

  • Audit is a tool to measure, analyze, evaluate and report the performance systematically. 
  • After finding out the significant factors that can significantly impact the organization, each factor has to be studied in detail. 
  • The result of audit helps to correct the current strategies. 
  • Auditing of environmental influences are done to understand the strategic position of an organization. 
  • Helps to identify the opportunities and threats. 





Scenarios 

  • Scenarios are detailed and probable views of how the business environment of an organization might develop in the future based on key drivers for change where there is a high uncertainty. 
  • Scenarios strengthen a manager’s strategic management tool box: 
  1. Traditional methods focus on the past. 
  2. Scenario planning focuses on the future. 

  • Combining both the past and the future makes thinking about strategy stronger and promotes: 
  1. Responsiveness. 
  2. Flexibility. 
  3. Competitive advantage. 

  • Scenarios allow a shared view of the future to be developed. 
  • Provide the opportunity for an organisation to consider how it wants to position itself in that future. 


Structural Analysis of Competitive Environment
  • The environmental forces that influence the competitive advantage of a firm is known as structural drivers. 
  • The structural analysis of competitive environment is done through “Five Forces Framework” which is known as Porter’s Diamond. 
  • This framework helps to identify the sources of competition in the industry. 
  • This framework states that the competition is a composite of five forces. 
  • This framework is used to formulate strategy at the level of strategic business unit. 
  • This framework helps to: 
  1. Identify key forces that drive competition. 
  2. Assess strength and weaknesses of competitors. 
  3. Identify attractiveness of specific industry. 
  4. Develop competitive strategy. 
 







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About Dinesh Lamichhane

"राम्रो भोलिको लागि, आज सिकौं र सिकाऔं" भन्ने उध्येश्यका साथ संचालित, यो बल्ग शिक्षा, सञ्चार, जागरूकता, जानकारी, समन्वय, पुस्तकहरु, कक्षाहरू, आदि र समग्रमा लोकसेवा र कलेजको विद्यार्थी सँग सम्बन्धित ब्लग हो। देशमा बढीरहेको बेरोजगारी र नेपाली प्रशासनमा कमजोर कर्मचारी को समस्यालाई ध्यानमा राखी यो बल्ग निर्माण गरिएको हो । यहाँ हामी सके सके-सम्म सम्पुर्ण बिषयबस्तुहरु समावेस गर्ने प्रयास गरिरहेका छौ। जस्ले गर्दा कुनैपनि लोकसेवाको तयारी गरीरहेका र कलेज पढ्दै गरेका विद्यार्थीहरुलाई धेरै उपयोगी हुनेछ भन्ने हाम्रो विश्वास रहेको छ। तपाईपनि आ-आफ्नो ठाँऊबाट हामीलाई सहयोग गरिदिनुहुन अनुरोध गर्दछौ । तपाई सँग एदी कुनै लोकसेवाको लागी सहयोगी सामाग्रीहरु साथै बिभिन्न संकायका शैक्षिक सामाग्रीहरु छन् भने हामीलाई lcdinesh57@gmail.com र dineshlamichhane57@gmail.com मा मेल गरी सहयोग गर्न सक्नुहुन्छ ।
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