Learn how to do External Analysis of a company (with examples)

Do you know what your country leaders are doing? Do you know what your country leaders will do next? Know this, and your business will be quite safer this way.

Every country has political leaders, some are in power, and some are in the opposition. The oppositions are not in the power. Their unofficial job is to oppose whatever the government plans to do. They love to do it.

Then there are businesses who lobby with the government to get what they want. Sometimes they get what they want, and sometimes they get kicked out.

You have to know what players are in the game and how their actions will impact the functioning of your business.

Government has few key roles. They are elected by the people to do good for them. Sometimes the elected government prefers to listen to the business houses and end up benefiting them on the expense of the citizens’ life. Sometimes opposite happens. Benefits to one party leads to losses to other parties. All the players, government, non-elected politicians, businesses, and citizens, fight to get their own share of things done.

You have to hold your nerve and monitor what is going on in the political sphere. More time you spend understanding the past policies of the government and the current players, you will get better idea on what is going to happen next in the country.

This is time consuming effort.

But you can save your time. If you want to know the current and expected political climate of the country, listen to the experts. There are scores of political analysts in the country who give you their two-cents on current political situation of the country.

There are few things, if it is there you can say that the political environment is favorable for business. They are:

• Government is stable. It does not change every now and then.
• Government is pro-business. Its actions support business survival.
• There are less red tape in the government offices. You get things done faster, either it is getting environment clearance or company name registration.
• Government’s actions are for the economic growth of the country.
• Government is positive about the industry in which you are operating.

Check out your company’s goals and build few questions whose answers can help you decide on the favorable political scenario of the country.

You would want to download and read following detailed resource on how to do political analysis:

Download: Political Analysis for Collaborative Process Managers (Yaffee & Chadwick, 2004)