The paper 'Strategic Planning and Management' is a great example of a Management Assignment. An in-depth external analysis of an organization looks at how the factors that exist outside the organization affect its strategy. Organizations operate in two types of environments: the macro-environment and the industry environment. The macro-environment is made up of different factors such as economic, political, social, technological, and environmental (PESTLE) which affect the growth prospects of companies in different industries (Stead, 2014, p. 64). On the other hand, the industry environment is composed of different factors such as the bargaining strength of buyers and sellers, the threat of substitute products, and the threat of entry of new companies into an industry.
This form of analysis is known as Porter’ s 5 forces framework and is used to analyze the level of competitiveness in different industries (Porter, 2008, n. pag). These factors usually affect the level of competitiveness that is being experienced by companies operating within a particular industry. Therefore, their competitive positions are shaped by the factors of the industry environment. This paper will conduct an external analysis of Booktopia.
For this to be done, the external environment in which the business operates will be taken into consideration. Analysis of the factors that exist in the macro-environment of the organization and how they influence different business organizations in different industries will be done using the PESTLE framework. Analysis of the external environment for Booktopia will be followed by an analysis of the industry environment in which the company operates. This will be done by the use of Porter’ s 5 forces framework. The paper will then discuss the strategic options that are open for Booktopia and recommend key objectives and a mission statement that the organization should pursue going forward.
For this to be done, the paper will make use of the 5Qs model. Booktopia’ s in-depth external analysisMacro-environment analysisIn general, the economic factors that prevail in the macro-environment may have a positive impact on the growth prospects of the industry in which Booktopia operates. This is because of several reasons. To begin with, the total revenue in the book industry in Australia has been increasing steadily over the recent past (Ewart, 2012).
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