Summary of Unit 2 - The external Environment

After reading this unit you should be accustomed to the external environment of your company and also key analysis methods which can be employed in order to gain a better understanding of it. The starting point is the introduction of the contextual and perceptual environment of your company. Furthermore, the observation of technology, suppliers, synergies, competition and the labour market should lead you to Porter´s model of Five Forces, which covers the aforementioned factors and how they influence your company. Lastly, the unit presented you with the principles of strategic groups, which is a more detailed approach to the external environment of your company.