Starting an External Environmental Analysis

This project is the first of four projects. This project
provides the first steps in completing an external environmental analysis of
your focal company’s strategic management plan. You will use tools and apply
concepts learned in this and previous business courses to demonstrate an
understanding of how organizations develop and manage strategies to establish,
safeguard and sustain their competitive position in the 21st century (rapidly
evolving/shifting/changing), uncertain hyper-competitive business environment.

Completing a company overview and assessing the general
environment is key in performing an external environment analysis. This project
provides you with the opportunity to evaluate the competitive position of one
of the organizations listed below and integrate that information into the
beginnings of an external environmental analysis.

The company you will be analyzing operates within the global
market. Therefore, you will assess the company in terms of the global industry.
Industries differ widely in their economic characteristics, competitive
situation, and future profit potential.

In this project, you are presenting a report document. The
expectation is that the report provides details to help the audience grasp the
main topics and understand the business climate.

“Analysis” is the operative word. In analyzing the
external environment, you are expected to thoroughly research the company. As
part of that effort, you will need to take that research and break it into
small parts to understand better what is happening in the external environment
of the business. In researching an industry, it is important to understand that
every company within an industry is different, so gathering information on one
company does not mean that the collected information is relevant to other
companies. When researching, parsing the material is critical to an accurate
analysis. Avoid presenting just any information as that may lead to using
irrelevant information.

You will then write the report in your own words to share
the external analysis. You are expected to present information with supporting
ideas and reasoning using the course material and your research. You will not
lift any information from source documents without properly citing and
referencing. For the technical analysis aspect of the project, you must create
the technique on your own and may not use any source material that you happen
to find. No work from a clearinghouse or similar website may be used or cited
as a credible source.

Outcomes Met With This Project

Utilize a set of useful analytical skills, tools, and
techniques for analyzing a company strategically;
Integrate ideas, concepts, and theories from previously
taken functional courses including accounting, finance, market, business, and
human resource management.

In completing the report, you will use the chapters in the
eBook and other course material. Moreover, you will research the company and
its industry before responding, in narrative form, to the information provided
in the steps (see below).

Step 1 Specific
Company for All Four Projects

In this project, you will complete a Company Overview, an
Evaluation of the General Environment, and a conclusion.

You will be assigned by your instructor one focal company to
complete the analysis. The assigned company must be used for all four projects
in this course.

Assigned Company: General Motors Company (NYSE: GM)

Step 2 Course
Materials and Research

You are required to research information about the focal
company and the external environment for this project. You are accountable for
using the course materials to support the ideas, reasoning, and conclusions
made. Course material’s use goes beyond defining terms and explains the ‘why
and how’ of a situation. Using one or two in-text citations from the course
materials and then relying on Internet source material will not earn many
points on the assignment. A variety of source material is expected, and what is
presented must be relevant and applicable to the topic being discussed. Avoid
merely making statements but close the loop of the discussion by explaining how
something happens or why something happens, which focuses on importance and
impact. In closing the loop, you will demonstrate the ability to think clearly
and rationally, showing an understanding of the logical connections between the
ideas presented from the research, the course material, and the question(s)
being asked.
Note: Your report is based on the research results performed
and not on any prepared documentation. What this means is that you will
research and draw your own conclusions that are supported by the research and
the course material rather than the use of any source material that puts
together any of the tools or techniques whether from the Internet, for-pay
websites, or any pre-prepared document, video or source material. A zero will
be earned for not doing your own analysis.

Success: The analysis
is based on research and not opinion. You are not making recommendations, and
you will not attempt to position the focal company in a better or worse light
than other companies within the industry merely because you are completing an
analysis on this particular company. The analysis must be based on factual
information. Any conclusions drawn have to be based on factual information
rather than leaps of faith. To ensure success, as stated above, you are
expected to use the course materials and research on the focal company’s global
industry and the focal company. An opinion does not earn credit, nor does the use
of external sources when course materials can be used. It is necessary to provide explanations (the
why and how) rather than making statements. Avoid stringing one citation after
another, as doing so does not show detailed explanations.

Library Resources

On the main navigation bar in the classroom, select
Resources and then select Library. Select Databases by Title (A – Z). Select M
from the alphabet list, and then select Mergent Online. Dun and Bradstreet’s
Hoovers Database, among others, is another excellent source for competitors and
industry information. You are not to depend on one resource to complete the
analysis. Moreover, it is impossible to complete Porter’s Five Forces, a
competitive analysis, or an OT by using only the course material.
You should not be using obscure articles, GlassDoor, or
Chron, or similar types of articles.
Research for Financial Analysis: Financial Research.
Research for Industry Analysis CSI Market.
UMGC library is available for providing resources and
services. Seek library support for excellence in your academic pursuit.
Library Support

Extensive library resources and services are available
online, 24 hours a day, seven days a week at
https://www.umgc.edu/library/index.cfm to support you in your studies. In
addition, the UMGC Library provides research assistance in creating search
strategies, selecting relevant databases, and evaluating and citing resources
in a variety of formats via its “Ask a Librarian” service at
https://www.umgc.edu/library/libask/index.cfm.
Scholarly Research in OneSearch is allowed.
To search for only scholarly resources, you are expected to
place a checkmark in the space for “Scholarly journals only” before
clicking search.
Step 3 How to Set Up
the Report:

The document must be written in Word or RTF. No other format
is acceptable. Pdf files will not be graded. Use 12-point font for a
double-spaced report. The final product should be 7 – 8 pages. It may not
exceed 8 pages, including all tables and matrices, but excluding the title and
reference pages. Do no use an Appendix.

Create a title page with the title, your name, date, the
course number, and the instructor’s name.
Create Topic Headings that correspond to the exact sections
of the project requirements.
Step 4 Company
Overview

Provide a company overview, which is an essential component
of the strategic management process. The company overview includes the
purpose(s) for the founding of the company (i.e., what problem(s) was it formed
to solve and/or opportunities it was formed to exploit, who are the founders,
home country or state, current management, employee headcount, last year’s
revenue, etc.).
Step 5 Evaluate the
General Environment

Identify the global industry in which the company operates.
This must come from Mergent Online.
Discuss the company’s general environment by developing a
PESTEL analysis.
First, use the course material to identify the elements of
the PESTEL and what components make up each element. Then, complete the
analysis using research on the industry and the focal company. Be sure to
present and support the reasoning for what is presented thoroughly. You may not
use a PESTEL analysis that is already completed and available on the Internet.
A zero will result if used as the analysis has to result from your research and
your own development.
NOTE: A PESTEL analysis is not a table, and it is not a
bulleted assessment.
Identify and discuss one key trend for each letter of the
PESTEL for the industry. Key trends are separate from the PESTEL analysis.
Select one of the six trends identified in the previous
requirement and discuss how the selected trends could affect the focal company.
Discuss key areas of uncertainty related to the identified
trend for the focal company that could potentially impact the company’s
strategy.
Perform strategic analysis of the company’s mission, vision,
and objectives.
Step 6 Conclusion

Create a conclusion. The Conclusion is intended to emphasize
the purpose/significance of the analysis, emphasize the
significance/consequence of findings, and indicate the wider applications
derived from the main points of the project’s requirements. Finally, you will
conclude the findings of the external environment analysis.

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