Question One (1500 words):

Central to the firms approach in analysing the external environment is an appreciation of the dynamic context in which organisations operate. For example, Best Buy company became victorious over longtime archrival Circuit City Stores. However, Best Buy ran head-on into a much larger, formidable competitor :Wal-Mart Stores.

Critically explore the multiple layers that constitute an organisations business environment for companies like Wal-Mart and Circuit City? Critically analyze the tools and techniques that may help managers to identify and evaluate the external influences on strategy. Use relevant models and related current examples to support your answers.

Background/Supporting Information to Question One:

Based in Richfield, Minnesota, and having 3,900 stores worldwide, Best Buy reported a 20 percent decline in March 2009 earnings as its new rival Wal-Mart gained thousands of the old Circuit City customers. But Best Buy now meets Wal-Marts prices on electronics items and provides great one-on-one customer service with its blue-shirted employees. Best Buy remains well ahead of Wal-Mart in U.S. electronics sales, but Wal-Mart is gaining strength. Therefore the pace of environmental change facing organisations has increased and even given rise to conditions of hypercompetition where market stability is replaced by inherent instability and change (David, 2014).