Scribd
Upload
255 views11 pages

Strategic Management

The document discusses conducting a societal environment analysis for a company. It describes the political, economic, sociocultural, technological, environmental and other external factors that comprise the societal environment. It also outlines the steps to perform an analysis including identifying factors, evaluating trends, projecting future trends, adjusting projections, quantifying effects on the company and determining strategic actions.

Uploaded by

Renee Rose Piñera Bulusan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
255 views11 pages

Strategic Management

The document discusses conducting a societal environment analysis for a company. It describes the political, economic, sociocultural, technological, environmental and other external factors that comprise the societal environment. It also outlines the steps to perform an analysis including identifying factors, evaluating trends, projecting future trends, adjusting projections, quantifying effects on the company and determining strategic actions.

Uploaded by

Renee Rose Piñera Bulusan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 11

The Societal

Environment
Analysis
VISPERAS
The Societal Environment
The societal environment of a company consists of
political or legal, economic, sociocultural, and
technological factors.
The Political or Legal Segment
The political system, tax laws, government programs and
priorities, and other variables under the political or legal
segment directly affect a business or the industry where it
operates.
The Economic Segment
The growth or the recession of the economy, which is
manifested by key economic indicators such as interest
rates, inflation rates, and unemployment levels, affects all
types of businesses.
The Sociocultural Segment
The sociocultural segment refers to the customs,
traditions, values, beliefs, and lifestyles in a society for a
period of time. Some important variables comprising this
segment include greater concern on environment, the
level of education, and an increase of women in the
workforce.
The technological Segment
The accelerated pace of changes and advancements in
technology and communication has tremendously
affected almost all types of businesses across industries.
The Other Segments
The other segments, which are of equal importance and
must also be critically considered when conducting a
societal environment analysis, are the demographic and
global segments. The changes in the demographic
segment are often caused by changes in the other
segments.
Conducting A Societal
Environment Analysis
The common used strategic management tool to conduct
a societal environment analysis is the STEEP or PESTEL
analysis. STEEP stands for sociocultural, technological,
economic, environmental and political forces. On the
other hand, PESTEL stands for political, economic,
sociocultural, technological, environmental, and legal
forces.
To conduct a societal environment analysis, the following
steps should be performed:

1. List down the most important elements or variables that are applicable to
the company under each environmental force.
2. Evaluate the current trend of the listed elements, either locally or globally,
by gathering historical data. Make sure that all the information comes
from reliable sources.
3. Project the possible future trend of the variables using the historical trend
as the basis. A quantitative or qualitative approach or both be adopted
when making projected trends.
To conduct a societal environment analysis, the
following steps should be performed:

4. Adjust the projected trend based on the possible effects of


other environmental forces.
5. Quantify the possible effects on the company.
6. Draw strategic actions to minimize the effects of the identified
environmental forces.
References:
Aduana, 2021, Strategic Management, C&E Publishing, Inc. Quezon City Dess, McNamara,
Eisner, 2017, Strategic Management, Eight Edition, McGraw-Hill Int.,Philippines.

Disclaimer:

No copyright infringement intended for this presentation, solely for educational purposes only

You might also like