Business Studies Theory by Topic - External environment

Below is a list of business studies theory articles relating to the External environment section of Business Case Studies. Choose your sub topic from the list of arrowed links below the External environment heading to find all theoretical explanations.

External environment revision theory

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What is ‘external environment theory’?

This part of the curriculum explains the purpose of the marketing function and the process of marketing planning. It shows the importance of marketing in matching the company's offer or brand to what customers want and expect, as well as how companies use their strengths to take advantage of opportunities or counter threats. This includes:

  • Identifying marketing opportunities - market research, SWOT analysis
  • Setting marketing objectives - product- versus market-orientation
  • Analysing and forecasting markets - understanding customer types and market segments
  • Identifying what customers want - market research, customer service
  • Understanding how evaluating the elements of the marketing mix (product, price, place, promotion) helps a business to achieve competitive advantage
  • Exploring the levels of risk associated with different marketing strategies (Ansoff's matrix - market penetration, market development, product development, diversification) and determining which a business should choose to fit different needs.
  • Considering what strategies are open to a company to market products that are at different stages of the product lifecycle, such as pricing and promotional strategies.