979, p. 39) identified an external coalition as a description of an organization's external environment. Included in this external coalition were (1) owners, assuming that the organization is a publicly held company, (2) suppliers, (3) unions, and (4) the general public. While retaining this general concept, William Glueck (1988, p. 110) expanded the definition of an organization's external environment substantially. This expanded definition of the external environment included the following elements:
1. Economic factors. The economic factors which have the greatest impact on a firm's strategic planning are (a) the stage of the business cycle, (b) trends in price inflation and deflation, (c) monetary policies, (d) fiscal policies, (e) international balance of payments, (f) international balance of trade, and (g) federal budget deficits and surpluses.
2. Governmental and legal factors. The governmental and legal factors which most directly affect a firm's strategic planning are (a) wage and price controls, (b) equal employment opportunity laws, (c) occupational safety and health laws, (d)
consumer credit regulations, (e) zoning laws, (f) environmental protection laws, (g) consumer protection laws, (h) labor relations laws, and (i) plant termination laws. Additionally, governmental actions may affect strategic planning through (j) governmental purchasing policies, (k) governmental subsidies for selected industries, (l) export and import laws, (m) antitrust laws, and (n) taxation policies.
3. Market and competitive factors. The principal market and competitive factors affecting the strategic planning of a firm include (a) population demographics, (b) product life cycles, (c) product substitute availability, (d) strategic changes by competitors, and (e) the entry and exit from markets and industries of competitors.
4. Supplier and technological factors. The relevant supplier and technological factors affecting s...