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Running head: DB 3: DISCUSSION THREAD 1 External Environment, Power / Weakness, and Decision Models Students Name Institutional Affiliation Course Date

DB 3: DISCUSSION THREAD 2 External Environment, Power / Weakness, and Decision Models A company's external environment comprises elements that it can readily control and those primarily out of its control. The latter category of factors is thought to exist in the environment as a whole. Because the general environment has a significant impact on a company's success, executives must watch events and trends unfold and try to foresee their repercussions. The process of defining a company's strategy requires a thorough examination of the external environment in which it operates. When assessing the external environment, it is critical to recognize critical sources of power or weakness. Decision models certainly impact strategy creation and should be assessed, and others were taken into account regularly. PESTEL, an organizing framework that allows decision-makers to analyze and establish connections with a large amount of data, is a regularly used management approach. It looks at six major macro-environmental elements to see how they interact with the company. Firstly, Political factors such as political stability and policy and fiscal, trade, and taxation policies determine how much government and state policy affects an organization or a specific industry. Second, economic considerations impact the economy and its operation and the profitability of the company. Interest rates, labor market conditions, raw material costs, and foreign exchange rates are just a few examples. Third, social factors concentrate on the social context and detect developing trends, allowing marketers to understand their clients' requirements and desires better. For example, evolving family dynamics, educational levels, contemporary culture, attitude shifts, and lifestyle shifts are all factors to consider (Matovic, 2020). Fourthly, technological factors that affect a market or sector include the pace of technological innovation and growth. Changes in mobile or digital technologies, robotics, and research and innovation are among them. Fifthly, there are environmental elements that have to

DB 3: DISCUSSION THREAD 3 do with the environment's effect and ecological features. Climate change, recycling techniques, trash disposal, and other issues are among them. Finally, legal factors emphasize the necessity of an organization's understanding of what is lawful and permissible within the jurisdictions in which they operate—moreover, any regulation changes and the implications for corporate operations. Employment law, consumer protection laws, safety and health, global and trade legislation, and constraints are all factors to consider (Matovic, 2020). Alatailat et al. (2019) explain that strategic thinking is a deliberate and reasonable thought process that focuses on analyzing crucial factors and variables that will affect a company's long- term success. As a result, you will have a clear set of goals, plans, and new ideas that you will need to survive and prosper in a competitive, ever-changing world. Economic realities, market dynamics, and available resources must all be considered in this kind of thinking. For any firm, the competitive landscape can shift rapidly. New trends emerge swiftly, and you must seize the opportunity or risk falling behind. If every day strategic thinking is incorporated into tasks and routines, the business will better anticipate, forecast, and capitalize on opportunities. Alatailat et al. (2019), also note that on an employee level, strategic thinking enables employees to make a better contribution in their roles, become more valuable to the firm, and demonstrate that they are capable of managing additional resources. Furthermore, during an organization's yearly planning process, leaders often acquire, analyze, and integrate internal and external facts and ideas to define its strategic intent and build a strategic narrative. For a set amount of time, the latter will steer the company towards the future. Leaders then select and plan particular activities to carry out these strategic goals. Businesses should set aside time throughout the year for strategic thinking and reviews. As a result, top managers should analyze their strategic objectives regularly to ensure that they are being implemented, reviewed, and sustained across the firm (Alatailat et al., 2019).

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DB 3: DISCUSSION THREAD 4 Decision models are critical in evaluating the external environment because they allow a corporation to break down even the most complicated strategic decision into more achievable sets, allowing for scalability. Most crucially, the organization can document exactly how its products are created, allowing operations to spot problems in the process promptly. The goal of decision models is to strike the best possible balance between resource costs and service quality. In reality, this goal will have to be set for each case, although it will almost certainly be to obtain the least cost of resources for a desired outcome and job quality. As a result, decision models other than the traditional three (rational, administrative, and retrospective) are being examined. The intuitive decision-making model, for example, is based on decisions made practically instantly after quickly examining what the organization has learned from comparable historical scenarios to assist it in concluding the current situation. The latter is quick and saves time in decision-making (Alatailat et al., 2019). In a nutshell, the process of defining a company's strategy requires a thorough examination of the external environment in which it operates. When assessing the external environment, it is critical to recognize key power sources or vulnerabilities. Decision models continue to impact strategy creation and should be assessed, and others were taken into account regularly. The organization will be more proficient in predicting, anticipating, and seizing opportunities due to strategic thinking. Although decision models help analyze the external business environment, they do not achieve the optimal balance between materials and the service provided. References Matovic, I. M. (2020). PESTEL Analysis of External Environment as a Success Factor of Startup Business. ConScienS , 96. Alatailat, M., Elrehail, H. and Emeagwali, O.L. (2019), "High performance work practices, organizational performance and strategic thinking: A moderation

DB 3: DISCUSSION THREAD 5 perspective", International Journal of Organizational Analysis, Vol. 27 No. 3, pp. 370- 395. https://doi.org/10.1108/IJOA-10-2017-1260 Annotated Bibliography Matovic, I. M. (2020). PESTEL Analysis of External Environment as a Success Factor of Startup Business. ConScienS , 96. Matovic, a banking professional and a research analyst, intends to present the objective of PESTEL study as a vital aspect in entrepreneurial success. He suggests using the PESTEL method to assess the workplace environment for startups, focusing on the most typical issues that startups face while doing a PESTEL assessment. The paper's major goal was to present an

DB 3: DISCUSSION THREAD 6 overall picture, highlight areas that needed improvement, and provide criteria for new businesses to increase competitiveness. The author points out that there are various methods for analyzing the external environment, and the most common configuration is PESTEL analysis, which connects external factors and evaluates present and future opportunities and risks that may emerge from political, ecological, social, and economic, legal, technological factors. He points out that the administration must keep a constant eye on the organization's macro environment, identify threats and opportunities, and adjust to the effects of external forces. Management's reaction to environmental factors could be the selection of the most appropriate strategy for the firm. Quality macro-environmental factor analysis utilizing the PESTEL model breeds success in exploiting investment opportunities. In contrast, several risks are handled by identifying business solutions that mitigate their detrimental effect. The paper makes a conceptual and empirical contribution to the field of PESTEL analysis for new businesses. The author concludes that, with well-designed strategic management, startup and small business owners should take advantage of the mentioned chances to increase business performance. According to the study, several hazards should not be overlooked. External macro-environmental threats must be mitigated by creating business solutions that can mitigate their detrimental impact. Alatailat, M., Elrehail, H. and Emeagwali, O.L. (2019), "High performance work practices, organizational performance and strategic thinking: A moderation perspective", International Journal of Organizational Analysis, Vol. 27 No. 3, pp. 370-395. https://doi.org/10.1108/IJOA-10-2017-1260 The researchers claimed to investigate the link between strategic thinking and organizational effectiveness by employing various strategic management concepts. It also assesses if the idea and nature of high-performance employment activities are appropriate.

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DB 3: DISCUSSION THREAD 7 Unless seen from a systemic viewpoint, the data indicate that full intent, intellectual entrepreneurship, conceptualizing in time, and hypothesis-driven evaluations positively affect organizational performance. As a result, it was determined that high-performance work approaches merely weakened the link between full intent, intellectual opportunism, real-time thinking, and the organization's success. Through the control role of increased employment activities, the authors looked into the effects of strategic thinking on organizational performance. The authors point out that the complexity of comprehending strategic thinking in firms is exacerbated because organizational outcomes are analyzed at numerous levels. As a result, the existing literature has yet to develop an adequate theoretical framework that can fully contain and explain all aspects of strategic thinking. According to the study, while some interpretations focused on conceptual issues and definitional conflicts, others linked the notion to related fields. Others have described the drivers that modify the work system under the notion. It is critical in terms of the organization's outcomes, as evidenced by empirical methods and research. The work system appears to affect a wide range of cultural and elements as well.

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