How can a decision maker identify strategic factors in a corporation?s external international environment?
Compare and contrast trend extrapolation with the writing of scenarios as forecasting techniques.
Your answers shouldn’t exceed 120 words.
Q3 Read the messages of your classmates and post at least two responses:
1- A decision maker’s evaluation of competitors, macro analysis to highlight external influences, customer behavior, target customer demographics, and customer requests and needs are all essential in identifying the company’s strategic components. The term “business environment” is used to describe the interconnected web of influences on a company, both internal and external, such as employees, customers, suppliers, customers, management, government regulation, market forces, social trends, technical advancements, and economic shifts. The term “external environment” is used to describe elements of the world outside of a corporation that have an effect on its operations. Some outside factors are handled by the company’s marketing department, but management has to deal with others.
2-Extrapolation is not anything extra than a easy extrapolation of contemporary patterns. Assuming a quite regular and slowly converting surroundings is the muse of this strategy. The reality that extrapolation is the maximum broadly used forecasting approach indicates that it’s also fantastically trustworthy to use. Contrarily, extrapolation is like running a automobile backwards with out the advantage of a rearview replicate or contorting your neck to appearance over your shoulder. At least till the street takes a pointy turn! If the term is predicted to be short and one is lucky, extrapolation is appropriate, much like riding backwards. In contrast, situations are constructed with the aid of using combining present statistics with the knowledgeable guesses of high-rating company executives with get admission to to environmental facts or with the aid of using polling an professional panel the use of the Delphi method. Scenario writing is frequently used to make predictions, however it could take extra time and be extra complex than extrapolation.
To evaluate the strategic variables in the firm, the decision-maker must examine rivals, aggregate analysis, and consider the preferences of their customers and behavior..
The external environment, which includes an organization’s sector and rivals, may have an impact. Technology, which is used in the business, legal (government laws), politics, and .the economic, social, and cultural environments are examples of external environmental influences
The most basic forecasting technique is trend extrapolation, which is used to predict the future.
They rank second to trend extrapolation as the most used forecasting techniques, Scenarios. So, the scenario might either be constructed independently of other forecasting techniques, or it could just be a description of some future claims that includes important characteristics and difficulties.