Business Environment Analysis

1. BUSINESS ENVIRONMENT ANALYSIS
(BEA)
By Mr. Ratha Chan

2. INTRODUCTION TO BEA
Any organization , business and institution is operating
under its specific environment. As a consequence , they
need to understand and analyze thoroughly those factors in order to
achieve the overall goal of the organization.
BEA is one of the first steps in strategic management or the first
move from any business's perspective before they made a decision. And
Also it is used to stay up to date on trend and keeping their
competiveness ahead of the competitors.
There are two main factors in BEA :
1- Internal Factor (Internal Environment)
2- External Factor (External Environment)

3. OVERALL PICTURE OF BEA
Supplier Customer
Internal factors:
Product line, Staff
capital and financial
Competitors

4. BUSINESS ENVIRONMENT
Divided into two main factors that could impact to
business operation :
1- Internal Factor 2- External Factor
Internal Business External
Factors Operation Factors

5. INTERNAL FACTORS:
 Labor problems
 Credit policy changes
 Change in incentive schemes
 Inventory shortages
 Working capital shortage
 New product lines
 Expected cost of raw materials, storage, shipping
 Product past sales
 Change in ownership or shareholders
 Vision, Mission , Objectives ,Organizational
structure and internal communication flow chart

6. EXTERNAL FACTORS
Divided into two more factors :
1- Direct Factors (closer to business operation)
- Distributor
- Supplier
- Alliance
- Association
- Customer
- Competitor

7. EXTERNAL FACTORS (CON’T)
2- Indirect Factors (macro-environment)
- PEST or SLEPT Analysis
P: Politic
E: Economic
S: Social
T: Technology
L: Legal

8. ENVIRONMENTAL ANALYSIS- TECHNIQUES
SWOT
Strategic
PEST/ SLEPT Techniques
Questions
Industry Analysis Competitor
Analysis

9. ENVIRONMENTAL ANALYSIS- TECHNIQUES
The above techniques use to explore all possible options,
ideas, market trend , market penetration , exit strategy ,
competitor threat and strategy to hit back , real internal
capability , particular industrial trend , threat of legal and
regulation , current government policy and future trend,
new investment , expansion strategy, labor relation ,
best practices, local adoption strategy, geographical and
logistics and any other specific information.