How is Strategic Analysis Affected by the Environment?
Johnson and Scholes (1993) represented the strategic management process as three interacting elements comprising Strategic Analysis, Strategic Choice and Strategy Implementation. Each element is dependant on a number of factors, and one of the main factors affecting strategic analysis is the environment. The environment affects strategic analysis in a number of ways. Societal environmental forces are those forces that have an indirect impact and on which the organisation has little or no power, such as political, sociological and legal forces. The immediate environment, also known as task environment, is closer to the organisation and has a more direct impact. However, here again the organisation has scant control over these factors, such as demand, government, competition and market structure. The organisation has greater control on the innermost environment, the Internal environment, made up of the organisation’s structure, culture and resources, and its harnessing of technology such
