NIVEA being one of the leading companies in skin care globally has been under situations that have forced it to analyze the external forces affecting its global performance. The company has specialized in skin care products and from the past years, it has been facing stiff competition from other competitors. The company will focus on its external environment and there are five factors to be considered. First the company will analyze the Technological environment; this is where the company will focus on how technology has impact on the markets. The second force is political environment which focuses on the political stability globally, it is important to note that political issues impact either positively or negatively on the markets. Economic force is the third and it will focus on the economic situation globally, economic situation also impact on the markets. Socio-Cultural force also impacts on the company markets as well as the stakeholder forces. The most influential forces are the political and the economic forces because they have an impact on the markets globally (Mugurel-Alin, 2017) .
Industry analysis is the process of examining the strategies and the performance of a company, it is important because it identifies that gaps that result to poor performance, and it also helps the company in making appropriate plans. Industry analysis helps in discovering those aspects that correlate and contributes to company performance. Benchmarking is also important because it helps the company to identify the gasps that contribute to poor performance. It also helps the company to identify its strengths and weaknesses. Financial analysis is the process of examining the flow of finance in the company. It is important to understand the fact that without finance, the company would not be able to carry out its profit making activities. When there is fault in the financial flow, the company will experience loss because there is finance shortage (David, 2016)
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Reference
David, F. R. (2016). Strategic Management: A Competitive Advantage Approach, Concepts and Cases, Student Value... Edition . Prentice Hall.
Leonidou, L. C., Christodoulides, P., Kyrgidou, L. P., & Palihawadana, D. (2017). Internal drivers and performance consequences of small firm green business strategy: the moderating role of external forces. Journal of Business Ethics , 140 (3), 585-606.
Mugurel-Alin, M. (2017). The management of external business environment interaction with the company. Development .
