tailieunhanh - Lecture Organizational strategies for the 21st century - Chapter 2

Chapter 2 - The external environment: Opportunities, threats, industry competition, and competitor analysis. The contents of this chapter include all of the following: Explain the importance of analyzing and understanding the firm’s external environment, define and describe the general environment and the industry environment, discuss the four activities of the external environmental analysis process,. | Chapter 2: The External Environment: Opportunities, Threats, Industry Competition and Competitor Analysis Overview: The firm’s external environment External environmental analysis General environmental segments Industry environment (and analysis) Porter’s 5 Competitive Forces Strategic groups: Definition and influence Competitors and competitive intelligence External Environment Analysis 4 components Scanning – the study of all segments in the general environment Monitoring – observing environmental changes to see if an important trend is emerging Forecasting – the development of feasible projections of what might happen and how quickly as a result of the changes and trends detected Assessing – determining the timing and significance of the effects of environmental changes and trends on the firm External Environment Analysis Major part of external analysis is the identification of opportunities and threats Opportunity Environment condition that, if exploited . | Chapter 2: The External Environment: Opportunities, Threats, Industry Competition and Competitor Analysis Overview: The firm’s external environment External environmental analysis General environmental segments Industry environment (and analysis) Porter’s 5 Competitive Forces Strategic groups: Definition and influence Competitors and competitive intelligence External Environment Analysis 4 components Scanning – the study of all segments in the general environment Monitoring – observing environmental changes to see if an important trend is emerging Forecasting – the development of feasible projections of what might happen and how quickly as a result of the changes and trends detected Assessing – determining the timing and significance of the effects of environmental changes and trends on the firm External Environment Analysis Major part of external analysis is the identification of opportunities and threats Opportunity Environment condition that, if exploited effectively, helps a company achieve strategic competitiveness Threat Environment condition that may hinder a company's efforts to achieve strategic competitiveness The External Environment: General, Industry, and Competitor The General Environment The General Environment The broader society dimensions that influence an industry and the firms within it Grouped into 7 dimensions OR ‘environmental segments’ Demographic – population’s size, age structure, geographic distribution, ethnic mix, and income distribution Economic – nature and direction of economy Political/Legal – laws and regulations Sociocultural – society’s attitudes and cultural values Technological – new technologies and firms that create them Global – new global markets, existing markets that are changing, and their characteristics Physical – potential and actual changes in physical environment and business practices The Industry Environment Industry Environment Set of factors directly influencing a firm’s

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