Prediction of changes in the business environment affecting strategic planning?

Question

Prediction of changes in the business environment affecting strategic planning?

Answer 1

this question is difficult to address because it is so broad-without a more specific idea of what type of business, i'll attempt with some very general considerations-

1. today, fuel costs affect nearly every business. costs to acquire raw materials and finished goods affect prices at every point in the supply chain-manufacturers pay more to get raw materials and ship products-distributors pay more to get them to retail; consumers pay more for them. therefore, increased cost of doing business and the potential decrease in sales in a recessionary economy are big strategic planning issues.

2. personnel costs continue to rise due primarily to health care costs, which are not fixed expenses and increases are unpredictable. Personnel costs are a huge portion of a company's expenses, so for planning purposes, increases are important to consider.

3. consumer spending is declining/consumers are more price sensitive-a company engaged in consumer products need to consider potential declines in sales and a higher risk on consumers switching to lower priced alternatives so must consider this in sales/marketing plans.

4. consumer buying patterns are changing-people are looking for convenience and drug chains and convenience stores are evolving to serve new/different needs (e.g. food section at Walgreen's, ready to eat foods at convenience stores)

these are just a few very broad items-depending on the type of business there are many more specific things to consider strategically.