The Importance of Environmental Analysis

Topics: Environment, Management Pages: 8 (1198 words) Published: August 17, 2015
Running head: Environmental Analysis

The Importance of Environmental Analysis
Kitt C. Tolliver
HBA 562
Saint Leo University


Environmental analysis is a strategic tool. It is a procedure to recognize all the outer and inner components, which can influence the association's execution. The examination involves evaluating the level of risk or opportunity the elements may exhibit. These assessments are later deciphered into the choice making procedure. The investigation assists adjust techniques to the association's surroundings. Businesses are greatly influenced by their environment. All the situational factors which determine day to day circumstances impact firms. So, businesses must constantly analyze the trade environment and the market.

There are many strategic analysis tools that a firm can use, but some are more common. The most used detailed analysis of the environment is the PESTLE analysis, but for our topic we will be using STEEP. This is a bird’s eye view of the business conduct. Managers and strategy builders use this analysis to find where their market currently.  It also helps foresee where the organization will be in the future (


A company I am a customer of and who I will be analyzing the role of Macro Environmental Analysis and Perceived Task Environment at will be Starbucks. Starbucks open its first store in 1971 in Seattle’s historic Pike Place Market. Starbucks offered some of the world’s finest fresh roasted whole bean coffees. Starbucks grew from that one store location in 1971 to over 2000 stores worldwide and currently worth more than $55 billion dollars. A lot of Starbucks achievement is because of the way they treat their employee’s. Also their training and the way they run the organization without much managerial supervisor. They feel part of the company and are committed to them and Starbucks trust their choices in maintaining the business (

Starbucks acknowledge how the environment is getting more vital by the day and they attempt to contribute. Starbucks recycles, they decrease bundling and even some of the buildings have innovative elements. Yet, they additionally have been responsible about the way they develop their coffee by helping and teaching the farmers. Macro environmental elements have has a large impact on Starbucks, social factors that constitute demographic aspects, people’s lifestyle, values and cultures. Perceived Task Environment also plays a role in Starbucks businesses, it’s a crucial concept that comes from an external environment analysis. It all implies the inclination of upper management at Starbucks to formulate strategies or make decisions based on their awareness or feeling of external environment impacts. Starbucks isn’t just about coffees, they offer a selection of teas, pastries and other delectable treats and when upper management cannot decided on which of these treats that might please their customers more it could bring a sense of uncertainty and that could cause a delay putting new items on their menus. .


One of the most common strategic analysis tool a firm uses is the STEEP analysis. A STEEP analysis is a tool commonly used in marketing to evaluate different external factors which impact an organization. It is essential for every business to consider some external forces before they can take decisions. The STEEP analysis is often conducted by firms to get a detailed overview on what external factors determine the trends. It also helps to predict what might happen...

References: What is Environmental Analysis? (23Feb2015). Retrieve:
Starbucks. (n/d). Retrieve:
STEEP Analysis. (n/d). Retrieve:
Environmental Analysis. (2Sep10). Retrieve:
Perceived environmental uncertainty, information literacy and environmental scanning: towards a refined framework. (Jun 2012). Retrieve:
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Environmental Analysis Essay
  • Essay on Environmental Analysis
  • Environmental Analysis Essay
  • Environmental Analysis Paper in Starbucks
  • Environmental Analysis Essay
  • Environmental Analysis Essay
  • Essay about Environmental Analysis
  • Essay on Environmental Analysis

Become a StudyMode Member

Sign Up - It's Free