EXTERNAL ENVIRONMENT ANALYSIS

EXTERNAL ENVIRONMENT ANALYSIS

External Environment Analysis

An environmental analysis can be a very extensive undertaking, requiring far more time and resources than we have for this course. So you will want to limit your analysis to the identification and evaluation of one or two key items in each element of the two models, as described in the background readings for this module.

Keys to the Assignment

Step One: Using the sources you identified in the SLP, collect some data to support an industry analysis of each of the 5-Forces in Porter’s Model.

Step Two: Using the sources you identified in the SLP, collect some data to support an analysis of each of the 4 elements in the PEST analysis. When considering economic data, use the most current data you can find.

Step Three: In a 5-6 page paper, write up the results of your external analysis, and be sure to label each of the 5-Forces as high, moderate, or low. Taken together, the 5 Forces analysis and the PEST analysis should lead to conclusions about the opportunities and threats facing Southwest Airlines as revealed by your research. The data you report from the 5-Forces and PEST analysis must be properly cited using APA style.

Step Four: Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as Southwest Airline’s company consultant. This is a professional document. Follow the format below:

Executive summary: a synopsis of the main points, conclusions and recommendations made in the longer report. If you have never written an executive summary before, or would like a refresher, check this website: http://www.highendfinance.com/CommercialLoans/Docs/07-4%20ES%20Guidelines.doc
Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.
Main Body: The “meat” of the paper. By all means, please emphasize analysis, not just description. Be sure that you make robust use of section headings in this – and all papers.

For example:
Executive Summary
Introduction
Porter’s Five Forces
Threat of Entry
Rivalry
Substitutes
Bargaining Power of Suppliers
Bargaining Power of Customers
PEST
Political Environment
Economic Environment
Sociocultural Environment
Technological Environment
Overall Impressions Concerning the Company’s Environment (Opportunities and Threats)
Conclusion

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