Methods of analysis of the external environment of business activities

Abstract

The urgency of the business activity external environment analysis is due to the fact that the modern external environment of enterprises is characterized by an extremely high degree of dynamism, complexity, and uncertainty. Thus, the main condition in business, as well as in other areas of life, is the ability to adapt to changes taking place in the external environment. An important condition is that organizations must respond to new changes taking place in the external environment effectively and timely. Different methods of strategic analysis are considered in this article, namely: SWOT analysis, PEST analysis, STEP analysis, GRID matrix, SNW analysis, EFAS form and others that allow estimating the factors influencing the external environment of the market on the basis of which organizations can make effective decisions. The article highlights the advantages and disadvantages of methods.