Explor and analyses the external environment in which the 'Central Building Society' has operated

1.0 Introduction

This paper explores and analyses the external surroundings in which the Central Building Society has operated. Outlining the fundamental influences on the societys choice of strategy, it further proposes a strategy draught for the future.

It is assumed that the audience is familiar with the Central Building Society Case think over material (ECCH Collection) and business policy and management theory.

2.0 The Environment

A critical mover in the development of strategy is in the analysis and perceptiveness of both the internal and external environment in which the debauched operates.

This analysis of the Central Building Society is foc intentiond on the external macro-environment, and as such an internal analysis (e.g. resources, polish etc) is outside of this scope.

2.1 External Analysis

The variables that comprise the external environment bounce the context in which an organisation exists, consisting of everything classified as outside the organisation, directly or indirectly impacting upon the business.

It is useful to distinguish two features of the external environment: the broad environment, constituting the general environmental influences with which all firms must contend, and the agonistical environment; the specific features of the industry environment.

2.2 STEP Analysis

Broad environmental factors embarrass a number of general forces, which are examined in the form of a STEP analysis:

Note: Factors tend to inter-relate. Reference: vermiform process 2 - SWOT matrix.

*Socio-Cultural Forces

1)Customer awareness of alternatives

2)Customer loyalty

3)Population demographics

4)Levels of education

5)Demographic Forces

6)Age structure of population changing

* technological factors

1)Improved communication

2)Growth of ATMs

3)New complimentary technologies (e.g. Internet banking, phone banking)

4)Electronic funds transfers

5)Paying in machines

6)Increased use of plastic (credit cards etc)

*Economic Forces

1)Expanded emergence network to two counties + branch in London

2)Sharp fall in nominal inflation &type A; house prices

3)Stage of economic cycle (booming/busting)

4)1990s lower inflation & adenylic acid; lower rates of...

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