Environment and strategy

Environment influence strategic in the following ways :

1. Swot :Environment is the sources of strategic,weakness,opportunities and threats.Strategic combine strengths with opportunities.
2. Competition :Environment is the source of competition.The structure of industry impacts the natural of competition.
3. Resources :Environment influence the availability of unique resources.Demographic trends influence availability of employees and customers.
4. Returns :Environment affects the likely returns from alternative investment.

• Strategies must be adjusted to reflect changes in environment.Environment analysis is an important part of strategy formulation.
• External environment :It is located outside the organization.It is uncontrollable by the organization.It consists of political legal,economics,social cultural and technological forces.It provides opportunities and threats to the organization.