why environmental analysis and diagnosis
Post on 06-Apr-2018
218 Views
Preview:
TRANSCRIPT
-
8/3/2019 Why Environmental Analysis and Diagnosis
1/23
Why environmental
analysis and diagnosis?
Prime influencers of strategy
change
-
8/3/2019 Why Environmental Analysis and Diagnosis
2/23
Few negative consequences
Faceproblem at
singurplant
-
8/3/2019 Why Environmental Analysis and Diagnosis
3/23
Bhubaneshwar vendors protest Reliance Freshoutlets
The agitation was targeted against Reliance Fresh selling freshvegetables and fruits, which traders claimed hurt their
livelihood.
Protest over India stores closure
Chief Minister Mayawati ordered the closure of the shops
citing reasons of law and order.
-
8/3/2019 Why Environmental Analysis and Diagnosis
4/23
NIRMAfaced a problem at
Bhavnagar Kalatalav plant.
FRENCH FRIES CONTROVERSY
OF
Mc DONALDS
-
8/3/2019 Why Environmental Analysis and Diagnosis
5/23
When a company ceases to adjust theenvironment to its strategy or does notreact to the demands of theenvironment by changing its strategy,the result is lessened achievement of
corporate objectives.
-
8/3/2019 Why Environmental Analysis and Diagnosis
6/23
Managers need to search theenvironment to
1) Determine what factors in theenvironment present threats
2) Determine what factors in theenvironment present opportunities
-
8/3/2019 Why Environmental Analysis and Diagnosis
7/23
Influenced by the federal, state and local government.
Government environment include factors like,
Political system
Defense and foreign policies Legal rules
Political environment bifurcated into
Promoting Environment
Regulatory environment
Government sector
-
8/3/2019 Why Environmental Analysis and Diagnosis
8/23
BUSINESS OPPORTUNITIES: Government are large purchasers of goods and services.
Government subsidize firms and industries.
Government protect home producers against unfair foreign
competition.
Government policy changes can lead to increases in
opportunities and new business for firms .
For Ex: SEZ
Government sector
-
8/3/2019 Why Environmental Analysis and Diagnosis
9/23
Business threats Anti trust laws which limit mergers.
Government regulations that significantly affect the strategic
options of whole industries.
Governmental policies that change economic conditions, tax
laws, etc., can create threats to individual business.
Government sector
-
8/3/2019 Why Environmental Analysis and Diagnosis
10/23
Government competition with private sector
Threats to one firm may offer opportunity to another .
Government sector
-
8/3/2019 Why Environmental Analysis and Diagnosis
11/23
Examples:Electronic ItemsPrinting IndustryIndustrial RobotsPetroleum Industries
Affects the product or service life cycle.
Innovate and take a risk seems to be a critical component.
Technological sector
-
8/3/2019 Why Environmental Analysis and Diagnosis
12/23
Analyzing the Environment
Sectors in general environment helps thestrategists to determine nature functions andrelationships.
E.g.
social trends and values (smoking)
-
8/3/2019 Why Environmental Analysis and Diagnosis
13/23
Techniques for EnvironmentAnalysis
Verbal information
Written Information
Information System
Spying
Forecasting
-
8/3/2019 Why Environmental Analysis and Diagnosis
14/23
Description of EnvironmentalAnalysis
It is critical for strategists to develop an effectivenetwork of human sources to provide inputs forenvironmental analysis. These should be wellinformed. Knowledgeable sources inside theorganization & outside the organization.
Those who learn MIS/SIS approach must learn how to
get their findings more quickly & more easily to thisinformal network if they are to have any impact at all.
-
8/3/2019 Why Environmental Analysis and Diagnosis
15/23
The Role of the strategists inAnalysis & Diagnosis
Strategists
Analysis
VerbalSearch
DocumentarySearch
Formalforecast &Studies
MIS/SIS
Diagnosis &Decisionmaking
Top Managers Regularly Rarely Rarely Rarely Performs
CorporatePlanners
Regularly Occasionally Occasionally Rarely Advises asrequested
Board of
Directors
Occasiona
lly
Rarely Rarely Rarely Occasionally
advises
consultants Rarely Occasionally Rarely NA Occasionallyhired to advise
-
8/3/2019 Why Environmental Analysis and Diagnosis
16/23
Enter intoDiagnosis of the Environment
-
8/3/2019 Why Environmental Analysis and Diagnosis
17/23
Diagnosis of the Environment
Factors emerge to affect a diagnosis of theEnvironment
1) Factors about Strategists
2) Factors about Strategist's Job
3) Factors about group of Strategists
4) Factors in Strategists Environment
STRATEGIC MANAGEMENT
-
8/3/2019 Why Environmental Analysis and Diagnosis
18/23
Factors about Strategists
(that is StrategistsCharacteristics)
More relevant Experience
Higher the Aspiration level
The perceptual mode
The Psychological mood
Others
STRATEGIC MANAGEMENT
-
8/3/2019 Why Environmental Analysis and Diagnosis
19/23
Factor about Strategists Job
Time Pressure and Stress
Resource availability
Discretion
STRATEGIC MANAGEMENT
-
8/3/2019 Why Environmental Analysis and Diagnosis
20/23
Factors about Group of Strategists
Team Spirit
Cohesiveness
Power plays
STRATEGIC MANAGEMENT
-
8/3/2019 Why Environmental Analysis and Diagnosis
21/23
Factors about Strategists Environment
Some key findings:
o Sales of the old technology continues to expand.
o When sales did decline, it took from 2 to 11 years for
sales .
o New technologies often created new markets &
invade old markets by .
o The commercial introduction of new technology often
was made by .o An early and rapid commitment to new technology
was .
STRATEGIC MANAGEMENT
-
8/3/2019 Why Environmental Analysis and Diagnosis
22/23
Reference
Lawrence R Gauch, William F Glueck, Business
Policy & Strategic Management, 5th edition, New
York
STRATEGIC MANAGEMENT
-
8/3/2019 Why Environmental Analysis and Diagnosis
23/23
THANK YOU
STRATEGIC MANAGEMENT
top related