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The Political, Economic, Social and Technological (PEST) analysis for the Volkswagen company studies its external environment. This analysis is done to assess the potential of a new market for Volkswagen.
In order to understand the threats and opportunities facing an organization, you need a thorough understanding of its external context, including not only its industry, but the larger environment in which it operates. The proper analysis of the external context, together with the firm-level analysis you learned in Chapter 3 (e.g., VRINE, value-chain), allow you to complete a rigorous analysis of a firm and its options. You could say that with these tools you can now perform a thorough and systematic (rather than intuitive) SWOT analysis; that is, an assessment of a firm's strengths, weaknesses, opportunities, and threats.
It is an evaluation of those external factors that have an impact on businesses where these have either little or no control over; it is generally developed out of an initial STEEPLE analysis where all the following factors are considered and argued in relation to certain organization:SocialTechnologicalEconomicEthicalPoliticalLegalEcological
A critical analysis of business failure examines the underlying factors that contribute to a company's inability to succeed, including poor management decisions, inadequate market research, lack of financial planning, and failure to adapt to changing market conditions. It also explores the impact of external factors such as economic downturns and competitive pressures. By analyzing case studies of failed businesses, stakeholders can identify patterns and learn valuable lessons to mitigate future risks. Ultimately, such analysis emphasizes the importance of strategic planning, adaptability, and continuous learning in achieving long-term success.
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Marketing external environment analysis
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A SWOT analysis is an internal assessment tool used to evaluate a company's strengths and weaknesses, as well as opportunities and threats in its external environment.
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Analysis of Alternatives
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You do this through a SWOT analysis.
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External criticism ensures that the data analysis is thorough and unbiased by bringing in perspectives and insights from outside sources. It helps to validate the findings and conclusions of the analysis by identifying potential errors or limitations in the data. This type of criticism enhances the rigor and reliability of the data analysis process.