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Political - tax policy, government regulations, tariffs and trade restrictions. It may also include policies regulating the environment of the industry.

Economic - Macro and micro economic factors such as inflation, unemployment, exchange rates, growth rate and economic cycles can impact the performance of the business.

Sociological/Cultural - Consumer socio-cultural trends, health, safety, population demographics and attitudes trends can help the organization to predict consumption patterns.

Technology - Technological development, innovation, research and development as well as integration influences the production efficiency level and speed with which the organization delivers its products.

Legal - International and local laws, agreements, regional laws, competition law as well as regulations for health and safety etc. Influence the operation processes and where organizations decide to locate production base.

Environmental - issues relating to natural environment have become major concern for society. Therefore, companies need to comply with consumer demands for safe waste disposal, low rate of obsolescence, less environmental deterioration and low energy consumption etc.

Although the above list may look comprehensive, it is nevertheless not enough to gauge the external influences on the organization. For this reason, strategists and theorists usually use PESTLE analysis in conjunction with SWOT analysis. The rationale is that PESTLE merely identifies the factors that influence the organization from a macro perspective but it does really help in locating the key trends and how these trends will affect the organization at a micro level.

In addition, theorists are of the view that external environment analysis is not enough to gauge competitive advantage. In addition, the use of internal analysis models such as SWOT and value chain may further identify the internal resources that are required for gaining sustainable competitive advantage.

Internal Analysis Models:

SWOT Analysis

SWOT Analysis is used in conjunction with value chain analysis. Competitive analysis, according to Johnson and Scholes (1993), is incomplete if it does not take into account of the organization’s capabilities. Managers need to evaluate the external environment, yet at the same time, they need to match their capabilities and resources with the opportunities they want to exploit. Thus gaining a competitive advantage is not about finding opportunities and eliminating issues but it also involve gauging the situation according to the organization’s performance.

The acronym for SWOT stands for strengths, weaknesses, opportunities and threats. While SW is used to gauge internal dimensions, OT is basically used to identify external influences. It complements the value chain analy本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。