Portable Saw Mill Industry Essay Example | Topics and Well Written Essays - 750 words

Portable Saw Mill Industry - Essay Example Most of the times, there are a number of external factors that influence and affect Edward Perry ´s decisions. Such factors could be economic growth of the country, interest or lending rates, political policies, social, cultural and environmental factors affecting timber market. If these factors are not considered by Mr. Perry, he is more likely to miscalculate his profitability in the Portable Saw mill industry. Some of the benefits of conducting an external analysis are: 1. Assessment of structural limitations or opportunities in the market: For example, if you know that there is a public policy that is aiming to reduce overall consumption of timber; Mr. Edward Perry would look into ways to lobby or work around the policy to minimize the impact on his business. An external analysis hence provides important information that strategic managers use in planning, decision-making, and strategy formulation. 2. Long-term market growth: External analysis help you understand the long-term growth prospects of the market by looking at the economic outlook of world, region or country and demographic changes in the country. It gives an idea of what are the driving forces behind the sales trends if the number of target customers is growing or not etc.