The managers must take notice of the fact that if the changes are significant, it may have the potential of changing the competitive rules of the game in the industry. With the easing of rules in foreign trade and participation of major global players, norms have changed dramatically which is reflected in the strategies of most of the firms in the sector. Foreign trade gives a wider focus and changes can be seen in the area of technology and pricing, their business alliances and network in the country.
Managers need to be cautious of the fact that there may be developments, which are not so easy to be predicted and therefore need further attention so that they can be incorporated in their strategy. In the global context, the managers must see the kind of impact any single change will have in different markets. It is quite possible that they are very different both in degree and their nature. Understanding of the general environment in which an organization operates is the foremost pre-requisite towards strategy formulation.
The six broad dimensions which the framework provides of the environment-political, economic, sociocultural, technological, environmental and legal are capable of giving a comprehensive overview of how things
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This shall enable the firm to proactively strategize for future considering the general environment; it is going to face and the issues which will be of importance.
1. Johnson, Gerry & Scholes, Kevan. (2004). Exploring Corporate Strategy. Sixth edition, Prentice-Hall of India, New Delhi. 2. Thompson, A. Arthur, Jr. and Strickland, A. J. III. (2003). Strategic Management, Concepts and Cases, Thirteenth edition. Tata McGraw Hill Publishing, New Delhi. 3. David, R. Fred. (1997). Concepts of Strategic Management. Prentice Hall International Inc.