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

We have come very far in understanding the external factors that are important for the analysis of the environment where the company will be operating. We studied all, but studied in fragments.

External environment analysis is a holistic process. After knowing about each of the factors separately, now time has come to combine all of them together.

It will help us better understand the market scenario and whether the market provides a lucrative opportunity.

While assessing individually, you may have seen few factors that are against the company’s needs and some are in favor.

If you will look at all the factors together, then you will be able to know the overall situation. It is possible that one aspect of economic factors is very bad, but other areas in the external factors are good.

It is good to see the trees, but you should not ignore the forest either. Combined analysis helps you do this. In the next chapter we will learn how to combine all these factor analysis together and take a holistic look of the whole picture.