Initially when setting up in business it is essential to review the environment in which your business is operating as the basis for strategic decisions.
- Look for trends in the environment that can affect your business
- Examine the political, economic, social and technical issues
- Make full use of your managerial talent and indentify the issues
- Evaluate the impact and take this into account in your plan
It is so important in business to look at the environment, the current situation and developments and access the likely effect impending changes can have on your business.
Companies are often tempted to consider their own town and country but in today’s market it is so vital to consider the European and Global scene. This is not as hard as it may seem as you know your business and you should be able to focus your attention on those elements that will affect you.
In respect of each development there are areas you need to consider
- Whether it will last
- Whether it will grow, decline or suddenly change
- What effect it will have on your industry and business
Although this is the third recession I have experienced it has definitely been the hardest and longest. In the early 90’s interest rates were over 15% which meant that business and homeowners were crippled. However the media intervention was not so prevalent and therefore the recession was not so deep. I believe that if there was more positivity in the papers, news and television we could be out of these dire times very quickly.
Next Article – Business Planning –Areas of Change – Political Pressures
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