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Writing a business strategy is an essential aspect of starting and running a business.

Without a clear strategy, it is difficult to set meaningful goals and objectives. In determining your business strategy, a logical analysis of the environment in which you operate will both inform and influence the outcome.

The Impact of Economic Factors

This analysis — commonly called PESTLE, for political, economic, sociological, technological, legal and environmental — paves the way for identifying opportunities and threats, and effective business planning. Political factors include how regulations and policies imposed by your national or local government might affect the way you conduct your business. For example, import and export tariffs may make it difficult or uneconomical to do business with certain countries.

At a local government level, there may be restrictions on the kind of businesses permissible in certain locations, while in certain sectors of the economy, lobbying may be more or less prevalent. The strength and performance of the local, national and international economy can all impact a business, presenting both opportunities and threats. Different types of taxation and other duties can also hit your bottom line hard, so a deep understanding of the fiscal environment is essential in order to prepare viable financial forecasts.

TNO: Whiter than white! Read Free For 30 Days. A presentation for marketing, making the relation between marketing strategy and STEP analysis and how this can be used for the opportunities and threats in the SWOT analysis. Flag for inappropriate content. Related titles. Jump to Page. Search inside document.

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Technological environment Br. Retailer: database for demografic! What influences a specific company? Related Searches Marketing strategy Corporate strategy.

Article excerpt

Yodhia Antariksa. Borislav Kiprin.

STRATEGIC ANALYSIS of the BUSINESS ENVIRONMENT. Strategic Management, Strategy Formulation

Syed Hassan Raza. Muhammad Sajid Saeed. The five forces of competition that are the power suppliers, new entrants, buyer power, substitute products, and similar companies. Competition in the business world can be sourced from various parties.


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Therefore, the marketing management must be able to create a competitive advantage for the company. The study of companies environmental is directed to develop the opportunities of acceptability in the environment. In addition, it also aimed to develop adaptability to face the threats by the company. The recognition and authorization of environment will have a positive impact on the quality of the resulting marketing strategy. The quality of marketing strategies is the key to success achievement of targets and company performance.


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The performance of a marketing strategy is determined by how good the quality of the input of resources and the quality of analysis of the influenced environmental factors. The changes in the current environment are rapid and uncertain, making the competition is very high and tight, and so we need the right marketing strategy and effective. This condition requires businesses to think innovative and creatively, so that to maintain the competitiveness of businesses, and not collapse in free competition. Every businessperson must understand environmental trends and the changes are expected to occur in which the company does business.

Attention and a deep knowledge of the behavior and characteristics of the competitors can form strategic-thinking in which indispensable for the long-term development of the company in a healthy manner. The company environmental condition has a major role in influencing managerial decision making.

The monitoring of marketing environment is strategic and necessary.