External Environment Analysis
External Environment Analysis
External Environment Analysis
Nada Helmy
Value Creation Manager, HALA Ventures
SESSION OBJECTIVES
MICRO
Internal
MACRO
INTERNAL BUSINESS ENVIRONMENT
EXTERNAL BUSINESS ENVIRONMENT
MICRO MACRO
SUPPLIERS POLITICAL
CUSTOMERS ECONOMIC
INTERMEDIATIERIES SOCIAL
COMPETITORS TECHNOLOGICAL
MARKET LEGAL/
REGULATOR
Y
MICRO EXTERNAL BUSINESS ENVIRONMENT
Political Factors:
•Changes in international trade policies and tariffs can affect Amazon's global
supply chain. For instance, increased tariffs on imports from China could raise
the cost of goods sold on Amazon, forcing the company to adjust pricing or
seek alternative suppliers.
Economic Factors:
•A global recession could lead to reduced consumer spending, impacting
Amazon's sales. During such times, Amazon might focus on promoting
essential goods and offer more discounts or flexible payment options to attract
budget-conscious customers.
Sociocultural Factors:
•There is a growing consumer preference for fast and reliable delivery services.
Amazon continues to invest in its Prime membership program, offering faster
shipping and exclusive benefits to meet these customer expectations.
Macro Environment Example for Amazon
Technological Factors:
•Rapid advancements in artificial intelligence and machine learning enable
Amazon to enhance its recommendation algorithms, improving the customer
shopping experience by suggesting products more accurately based on
browsing and purchase history.
Environmental Factors:
•Increasing concern about carbon footprints and sustainability leads Amazon to
pledge net-zero carbon by 2040. The company invests in electric delivery
vehicles, sustainable packaging, and renewable energy projects to meet this
goal.
Legal Factors:
•Antitrust investigations and regulations in various countries can impact
Amazon's operations. Compliance with these regulations requires legal
adjustments and may limit certain business practices, such as exclusive
partnerships or pricing strategies.
MACRO EXTERNAL BUSINESS ENVIRONMENT
Shareholders, Senior
High Interest Customers, Employees
Management
Investors, Regulatory
High Interest Patients, Healthcare Providers
Authorities
https://fintech-egypt.com/FinTechEgypt2023/
https://fintech-egypt.com/FinTechEgypt2023/
www.eeei.arenho.com
ECOSYSTEM MAPPING
ECOSYSTEM MAPPING
Similarities Differences
Visualization: Both tools provide a visual representation of important Focus: Stakeholder Mapping focuses on individuals, groups, or
elements in a business's environment. organizations that have a stake in the outcomes of a business or
project. Ecosystem Mapping, on the other hand, considers a wider
Identification of Key Players: Both methods help in identifying range of entities, including competitors, regulatory bodies, and trends
important entities that can influence a business's operations and that exist in the business environment.
strategic direction.
Relationships: While Stakeholder Mapping identifies and classifies
Guidance for Strategy: Both mapping techniques are used to inform stakeholders based on attributes like power, legitimacy, and urgency,
strategy development, helping businesses to understand where to Ecosystem Mapping goes a step further to illustrate the relationships,
focus their efforts and resources. dependencies, and flows of value between different entities.
Dynamic: Both maps should be updated and changed as the Complexity: Ecosystem maps are typically more complex than
business and its environment evolve. They reflect a snapshot at a stakeholder maps, as they aim to represent a wider system where the
certain point in time but are not static models. business operates, while stakeholder maps focus on direct
relationships between the business and its stakeholders.
Remember: The tool is just a tool or mental framework, don’t focus on mastering the tool but try to use
the tool to master your business development work plan!
CHEAT SHEET FOR NEW BUSINESS DEVELOPERS
1.Define the Objective: Establish the purpose of your analysis, such as
identifying new markets, assessing competitors, or understanding
regulatory changes.
2.Collect Relevant Data: Gather information from diverse sources like
industry reports, news, market research, expert interviews, and surveys.
3.Use Analytical Frameworks: Apply tools like PESTLE, Porter's Five Forces,
and SWOT to structure your analysis etc.
4.Identify Key Players: Recognize all major stakeholders, including
competitors, suppliers, customers, and regulatory bodies. Understand
their strengths, weaknesses, strategies, and market positions.
5.Understand Trends: Identify significant industry trends, including
consumer behavior shifts, technological advancements, and regulatory
changes.
6.Analyze the Data: Use your collected data and chosen framework to
identify potential opportunities and threats for your business.
7.Develop Action Plans: Create strategies and plans to leverage
opportunities and mitigate threats based on your analysis.
8.Monitor and Update: Regularly update your analysis to reflect the
dynamic external environment.
PRACTICAL TOOLS FOR BUS. DEVELOPERS
Central Agency for Public Mobilization and Statistics (CAPMAS): The official statistical
agency in Egypt offers a wealth of data and reports.
Fitch Solutions: Provides country and industry reports, including Egypt-specific insights.
EMIS: This offers detailed reports on different industries in emerging markets, including
Egypt.
Statista: A leading provider of market and consumer data.
IBISWorld: Offers industry reports and analysis.
Mintel: Provides consumer market research, while Euromonitor has global strategic
market research.
MarketResearch.com: Hosts comprehensive collection of market intelligence
products and services.
PRACTICAL TOOLS FOR BUS. DEVELOPERS
Company Websites
Investor Relations Section: Public companies publish annual reports and investor presentations
that can give you insights into industry trends and challenges.
Thank you!
Nada Helmy
[email protected]
https://www.linkedin.com/in/nada-
helmy-029442102/