ABSTRACT
Environmental analysis is subject to the nature of processes of perception and interpretation. Perception and interpretation may either be objective or subjective. The process of environmental appraisal described in this chapter analyzes: the characteristics and the influence of the relevant external environments; the degree of environmental stability; and specific external opportunities and threats. The process of strategic analysis includes the assessment of a variety of external environments within which the enterprise operates. This assessment process is sometimes called the 'scanning' of the external environment. Strategic and operational decision-making depend on prevailing technological conditions and, increasingly, on the rate of change in the knowledge and technology base of the external environment. Demographics affect the type and characteristics of consumer behaviour, marketing and promotion, staff recruitment, the development of enterprise capability and competence, and the wider process of forward strategic planning.
