Timber King External Analysis

488 Words2 Pages
While there are many benefits for an organization to do an external analysis, it is important to know the most basic and important reasons for doing such. Conducting an external analysis provides information that managers use to make decisions regarding planning and strategy. Running an external analysis also means knowing your competition and their needs. It makes it easier for your managers to anticipate what your competition’s next movements might be, therefore making it easier to make strategic movements themselves. It is also the most important to know that organizations that conduct external analysis definitely makes a difference in an organization’s performance, whether it succeeds or fails. There are also challenges that come along with running an external analysis. For instance, you use forecasting as part of the analyses and they are not accurate, pinpoint information. It is merely a prediction of what could possibly be the outcome. Also, with the environments changing so rapidly, sometimes an analysis is already mute and invalid when it comes time to put it to use to make decisions. They also take an extreme amount of time to put together. The key to making them more time efficient is to identify the most crucial areas needing research and concentrate on those. Now keep in mind that you need to look at the organizational environments used for these analyses in two separate perspectives. The environment can be seen as a source of information, a source of information for decision making. “The amount of change occurring in an organization’s environment can be either dynamic or stable.” This means that if the changes in the environment are slow and minimal, it is considered stable. If the environment is more rapidly changing, then it is considered dynamic. Since they have the air of uncertainty, the amount of information needed depends on various things,
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