Introduction

The contextual and transactual environment consists of customers, suppliers, competitors, job seekers and employees, technology and synergies.

Customers are one of the most important stakeholders of your company. When running a business you should obviously be aware of who your customers are and what bargaining power they can develop, depending on the characteristics of your products or services. The aggregation of customers is defined as "market". You can distinguish between different types of markets such as consumer markets and organizational markets and the type of market can have a major impact on your company success.

Technology, suppliers and synergies are the three important external factors that can have a major impact on your sectors and subsequently on your own strategies. Suppliers can influence the profits of your company, depending on the negotiating skills of the supplier. Synergies can help you save resources in one process, but often at the cost of another process. Technology helps you produce and communicate.

Competition is often perceived as a threat, but at the same time it can serve as a driving force in the development of your company.

The labour market is a virtual market place, where employers and (potential) employees are matched. Labour Market models focus on the bargaining power of each individual employee. Generally you can say that the higher the education, the higher the wage.