Research Paper on:
Tools for Evaluating and Analysing the External Commercial Environment

Unformatted Sample Text from the Research Paper:
to be able to maximise the use of resources. This maximisation of resources and the resource base view have commanded a great deal of attention from the business press. However,  there is always a danger when any single element of the commercial environment is focused on; that there will be omission of other factors that require consideration for the decision  making process to be undertaken effectively. Any process will require the right inputs, and in line with the need for information regarding the company there is also a need for  information regarding the wider competitive environment. To help management there are several models that have been developed. Porter has been studying this area of many years. His five  forces model may be seen as one of the most widely used analytical tools to assess the competitive environment. His five forces model considers the external macro effects on an  organisation in a business environment (Porter quoted in Goett, 1999). His five forces model is designed to show how the external environment can effect the way a business operates, and  that any strategy a business undertakes should take these factors into consideration when analysing their position and possible future (DAveni, 1999). In  this way the changes that are made can be planned to minimise the negative influence and reduce their impact as well as taking advantage of any positive circumstances. In  understanding these external forces the business manager will be better placed to deal with them when they come to play. The five forces Porter identifies are the existing competitors, the  threat of new entrants, substitute products (or services), and the power of purchasers and suppliers. Porter does not see these external factors as