environment analysis
DESCRIPTION
TRANSCRIPT
The External Environment: Opportunities, The External Environment: Opportunities, Threats, and Competitor AnalysisThreats, and Competitor Analysis
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Strategy ImplementationStrategy Implementation
StrategicStrategicEntrepreneurshipEntrepreneurship
OrganizationalOrganizationalStructure and Structure and
ControlsControls
CorporateCorporateGovernanceGovernance
StrategicStrategicLeadershipLeadership
Strategy FormulationStrategy Formulation
StrategicStrategicCompetitivenessCompetitivenessAbove-AverageAbove-Average
ReturnsReturns
Strategic IntentStrategic IntentStrategic MissionStrategic Mission
The ExternalThe ExternalEnvironmentEnvironment
The InternalThe InternalEnvironmentEnvironment
The Strategic The Strategic Management Management ProcessProcess
FeedbackFeedback
Str
ateg
ic I
np
uts
Str
ateg
ic I
np
uts
Str
ateg
ic A
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ns
Str
ateg
ic A
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Str
ateg
ic O
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omes
Str
ateg
ic O
utc
omes
Corporate-Corporate-Level StrategyLevel Strategy
CooperativeCooperativeStrategyStrategy
Competitive RivalryCompetitive Rivalryand Competitiveand Competitive
Dynamics Dynamics
InternationalInternationalStrategyStrategy
Business-LevelBusiness-LevelStrategyStrategy
Acquisition andAcquisition andRestructuringRestructuring
StrategiesStrategies
General
Env
iron
men
t
General
Environment
Gen
eral
Environm
ent
Socio culturalSocio cultural
Global
Global
TechnologicalTechnologicalPo
litic
al/L
egal
Polit
ical
/Leg
al
Dem
ogra
phic
Dem
ogra
phic E
conomic
Econom
ic
The External EnvironmentThe External Environment
IndustryIndustryEnvironmentEnvironment
Threat of new entrantsThreat of new entrantsPower of suppliersPower of suppliersPower of buyersPower of buyers
Product substitutesProduct substitutesIntensity of rivalryIntensity of rivalry
CompetitorCompetitorEnvironmentEnvironment
External Environmental AnalysisExternal Environmental Analysis
A continuous process which includesA continuous process which includes Scanning: Identifying early signals of environmental
changes and trends Monitoring: Detecting meaning through ongoing
observations of environmental changes and trends Forecasting: Developing projections of anticipated
outcomes based on monitored changes and trends Assessing: Determining the timing and importance
of environmental changes and trends for firms’ strategies and their management
External Environmental AnalysisExternal Environmental Analysis
Strategic IntentStrategic IntentStrategic MissionStrategic Mission
The ExternalThe ExternalEnvironmentEnvironment
Analysis of general environmentAnalysis of general environment
Analysis of industry environmentAnalysis of industry environment
Analysis of competitor environmentAnalysis of competitor environment
The ExternalThe ExternalEnvironmentEnvironment
General EnvironmentGeneral EnvironmentSocio Cultural segmentSocio Cultural segment
• Society’s Attitudes and Cultural Values • Workforce Mix• Quality of Life• Women in the workplaceWomen in the workplace• Workforce diversityWorkforce diversity• Attitudes about quality of worklifeAttitudes about quality of worklife• Concerns about environmentConcerns about environment• Shifts in work and career preferencesShifts in work and career preferences• Shifts in product and service preferencesShifts in product and service preferences
Economic segmentEconomic segment
General EnvironmentGeneral Environment
Inflation ratesInflation rates Interest ratesInterest rates Trade deficits or surplusesTrade deficits or surpluses Budget deficits or surplusesBudget deficits or surpluses Personal savings ratePersonal savings rate Business savings ratesBusiness savings rates Gross domestic productGross domestic product
General EnvironmentGeneral Environment
Political/Legal SegmentPolitical/Legal Segment Taxation lawsTaxation laws Deregulation philosophiesDeregulation philosophies Labor lawsLabor laws
General EnvironmentGeneral Environment
Technological SegmentTechnological Segment
Product innovationsProduct innovations Applications of knowledgeApplications of knowledge Focus of private and government-supported Focus of private and government-supported
R&D expendituresR&D expenditures New communication technologiesNew communication technologies
General EnvironmentGeneral Environment
Global SegmentGlobal Segment Important political eventsImportant political events Critical global marketsCritical global markets Newly industrialize countriesNewly industrialize countries Different cultural and institutional attributesDifferent cultural and institutional attributes
General EnvironmentGeneral Environment
Demographic SegmentDemographic Segment Population sizePopulation size Age structureAge structure Geographic Geographic
distributiondistribution Ethnic mixEthnic mix Income distributionIncome distribution
Competitor EnvironmentCompetitor EnvironmentCompetitor intelligenceCompetitor intelligence is the ethical is the ethical gathering of needed information and data gathering of needed information and data about competitors’ objectives, strategies, about competitors’ objectives, strategies, assumptions, and capabilitiesassumptions, and capabilities what drives the competitor as shown by its what drives the competitor as shown by its future future
objectivesobjectives what the competitor is doing and can do as what the competitor is doing and can do as
revealed by its revealed by its current strategycurrent strategy What the competitor believes about itself and the What the competitor believes about itself and the
industry, as shown by its industry, as shown by its assumptionsassumptions What the the competitor may be able to do, as What the the competitor may be able to do, as
shown by its shown by its capabilitiescapabilities
Competitor AnalysisCompetitor Analysis
Future Objectives:Future objectivesFuture objectives How do our goals compare
with our competitors’ goals?
Where will the emphasis be placed in the future?
What is the attitude toward risk?
Competitor AnalysisCompetitor Analysis
Current strategyCurrent strategy
Current Strategy:Future objectivesFuture objectives
How are we currently competing?
Does this strategy support changes in the competitive structure?
Competitor AnalysisCompetitor Analysis
AssumptionsAssumptions
Current strategyCurrent strategy
Future objectivesFuture objectivesAssumptions: Do we assume the future
will be volatile? Are we operating under a
status quo? What assumptions do our
competitors hold about the industry and themselves?
Competitor AnalysisCompetitor Analysis
CapabilitiesCapabilities
AssumptionsAssumptions
Current strategyCurrent strategy
Future objectivesFuture objectivesCapabilities: What are our strengths
and weaknesses? How do we rate compared
to our competitors?
Competitor AnalysisCompetitor Analysis
CapabilitiesCapabilities
AssumptionsAssumptions
Current strategyCurrent strategy
Future objectivesFuture objectives ResponseResponse
Response: What will our competitors
do in the future? Where do we hold an
advantage over our competitors?
How will this change our relationship with our competitors?