The strategic manager should develop the strategic, which is relevant to its external environment. In order to fit the external environment, the manager should develop appropriate internal strategies, which will enable him/her to understand his/her organization strength and weakness to enable to focus on external environment. In internal environment, the manager should look inward and evaluate the company capability in term of skills and competence, human resources present in the organization etc. My main concentration will be on external environment.



External environment analysis will enable strategic manager to identify opportunity and threats which are available and facing a company example new business, new market share/segment, these included the below listed and discussed;

The Economic factors will consist of declining recession or boom of the business etc. the availability of credit facility to the company and the cost of credit, level of disposable income to expected consumer/ customer, the propensity of population to consume is the focus and evaluate tendencies of consumer to consumer company's products and services, prime interest rate for expansion of business, taxation system, currency exchange rates, international economic trends (balance of payment), GNP etc, all this will enable strategic manager to develop a strategy which will be able to sustain the economic trends for the specified plan period of the organization.

Social cultural is another external factor, which will influence a company's strategy. A good strategic manager should be able to measure values and attitude of the society in which the company exists and would be customers, life style of the population mix in which he/she aims the market strategy, segment, composition of work force and work ethnic which to get enough and qualified workers and whether they are ready or allowed by their ethnic to demographic character of the population, example age, sex, etc.

The religions aspiration is another external factor, which has to be considered before entering the market; For example a manager with a pork farm should never target or agree with a strategy to market its product in an Islamic region or country. It is the job of strategic manager to compare the planned strategy and the environment in which he/she is aiming in terms of religion and believes otherwise the plan will fail hence the organization.

The organization should also consider political environment of a country and even for the super power countries which will affect the company's decision either direct or indirect, in domestic politics the strategic manager should understand what policies in term of state and local registrations, rules governs business taxes, distribution, quality of the product, pressures groups such as trade unions. The political ideology of the government what policies which forms basis of political and economic theories, is it socialism or capitalism? Open or closed economy? The political attitudes towards the industry affects the strategy, is it a local manufacturers favored by politics or regarded same foreign industry?

The demographic environment includes the study of human population in term of size, density, location, age, profession and other statistics. The strategic manager should be able to evaluate demographic factors and to match the strategic market or product development plans with the demography of would be consumer e.g. consider a strategy of producing or marketing a baby clothes; the strategic manager should analyze the size of market in term of age, number of a new born per month. Likewise a strategy to market body cosmetics will need demographic analysis in term of sex, how many women especially between 14 ? 60 years mighty be available at each strategic plan period etc.