Finishing Porter’s 5 Forces and Impact of External Influences

Slides:

Advertisements

Similar presentations

A2 External Influences International Competitiveness and economic growth.

Advertisements

Why Do a Situation Analysis

Analyzing the environment

Chapter 3 Strategic Planning Process:

Nelson Phillips Professor of Strategy and Organizational Behaviour

Lecture 2 External Environment Analysis & Globalisation.

Tutorial 5 Five forces and PEST analysis

Vicentiu Covrig 1 Macroeconomic and Industry Analysis (chapter 12 online)

The Environment Macro-environment Micro-environment

Conducting an Industry Analysis. Seven Questions for Industry Analysis 1. What are the industry dominant economic traits? 2. What competitive forces are.

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 3 -1 External Strategic Management Audit – Environmental Scanning – Industry Analysis.

1 COMP5331: Web Pub and Web Ad 8. External Analysis Dickson K.W. Chiu PhD, SMIEEE.

Strategy and Industry Analysis GBUS 600 SWOT PEST and Strategy.

Chapter 2: The External Environment: Opportunities, Threats, Industry Competition and Competitor Analysis Overview: The firm’s external environment.

The Marketing Environment and Competitor Analysis

Business Policy and Strategy Lecture-11 1Business Policy and Strategy.

External Analysis: The Identification of Opportunities and Threats

© 2004 Mark H. Hansen External Factors in Marketing.

Business Analysis by Binam Ghimire

Business Strategy An introduction – John Birchall Pre-Masters Course – Extra Learning Materials.

Business and its Environment

External influences. External influences on business Businesses are influenced by a range of factors over which they have little control – these are called.

Chapter 3 The External Assessment

1 Bruce Bowhill University of Portsmouth ISBN: © 2008 John Wiley & Sons Ltd.

Environmental Scanning and Industry Analysis

Learning Objectives To learn to identify the different types of environments that affect a firm To learn to identify the different types of environments.

PESTLE vs. SWOT In contrast to a SWOT, PESTLE encourages you to think about the wider environment and what might be happening now and in the.

Business Strategy and Policy

ANALYSING THE BUSINESS ENVIRONMENT Failing to plan is planning to fail! The only constant in the modern world is change!

Social Biz Nuts and Bolts Environment Analysis General / External / Internal.

External Environment Analysis STRATEGY Environment Firm External analysis searches for conditions and trends that could affect the success of the firm.

Planning Planning is the establishment of objectives, evaluation and selection of policies, strategies tactics and action required to achieve them. A Forecast.

Porter’s five forces Corporate strategy Philip Allan Publishers © 2016.

Lecture 23 Electronic Business (MGT-485). Recap – Lecture 22 E-Business Strategy: Formulation – Internal Assessment Value Chain Analysis Linkages within.

PESTLE analysis. Aims Prepare a PESTLE analysis for a given situation and use it to analyse the impact of the external environment on a firm. Evaluate.

Chapter 1 introduction by Dr.Raafat Youssef Shehata.

Click to add text Principles of Marketing Fall 2013 Lecture Slides 3 Instructor : RAZA ILLAHE Lahore Leads University.

PEST Analysis & Porter’s Five Forces Model. PEST ANALYSIS The general environment of an organizations consists of the external conditions that set the.

Management Practices Lecture-7 1. Recap Economic Forces – Availability of credit – Interest rates Social, cultural, demographic and environmental forces.

COMPETITIVE ADVANTAGE UNIT – II. EXTERNAL ENVIRONMENT Any organization before they begin the work of strategy formulations, it must scan the external.

BUSS 4: Assessing Changes in the Business Environment

Selecting Marketing Strategies. - Learning Outcomes To be able to describe a range of marketing strategies Explain the meaning and significance of Ansoff’s.

Performance Evaluation System. A Situation Analysis A situation analysis identifies strategic options and opportunities A situation analysis involves.

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

1.5 External Environment 1.6 Organizational Planning Tools PEST(LE) SWOT Boston Matrix Ansoff Matrix Porter Five Forces.

Finishing Porter’s 5 Forces and Impact of External Influences

Porter’s Five Forces Model

External Influences: PESTLE Analysis

Porter’s Competitive Forces

Is Competition Good ? For consumers? For businesses?

Level 2 Diploma in Business Administration

Principles of Marketing Fall 2013 Lecture Slides 2

Finishing Porter’s 5 Forces and Impact of External Influences

External influences.

BUS662 SMALL BUSINESS CONCEPTUAL ISSUES. Learning Outcome: To conduct environmental analysis and thereby analyse requirements of a strategic Chapter 3:

CHAPTER TWO IDENTIFYING COMPETITIVE ADVANTAGES

Environmental and Industry Analysis

The Marketing Environment and Competitor Analysis

Environmental and Industry Analysis

External Influences on Business

PESTEL Markedsanalyse.

Managing in the Global Environment

Situation & Environmental Analysis

Chapter2 The business environment

Prof. Arjun B. Bhagwat Department of Commerce,

Strategic Analysis.

Competitiveness, and Strategy.

Part I: The Strategic Position

What affects our business from the outside?

Presentation transcript:

Finishing Porter’s 5 Forces and Impact of External Influences

To determine how a firm might cope with its competitors: apply… PORTERS 5 FORCES

Michael Porter’s Five Forces Model High industry profits Low industry profits Weak suppliers Weak customers High entry barriers Few opportunities for substitutes Little rivalry Strong suppliers Strong customers Low entry barriers Many opportunities for substitutes Intense rivalry

On iPads have a go at the quiz: http://www.tutor2u.net/business/quiz/porterfiveforces/quiz.html

Impact of External Influences PESTLE Analysis Political, Economic, Social, Technological, Legal, Environmental Factors In pairs Rank these in order of importance to Business

Ranking Exercise Economic – high linkage between Gross Domestic Product changes and Business Cycle (Key factors: Unemployment, Inflation, Exchange Rate) Legal factors: Employment law, minimum wage, Health and Safety standards, banning of dangerous goods, regulation of alcohol, tobacco sales etc. Technological factors – yes social media, online shopping important but not as revolutionary as use of Electricity, Trains, Cars Social – Trends low fat food, films, clothes etc. can dramatically affect Business, as does divorce rate, average size of family, migration Environmental factors – short term environmental laws can effect the economic cycle; long term vital: life expectancy improved from 40 to 80 between 1850 and 2016 due to lower pollution. Political factors: rarely a huge influence on business success or failure BUT local issues can be significant ie Hinkley Point, Fracking, London Airport expansion.

When and Why do we use PESTLE Analysis? Environmental Checklist Comparable to the “Opportunities / Threats” of SWOT Scenario analysis for a firm’s management to ask “What if….” Brexit for example will raise challenges for Firms – Working in Pairs/Threes consider a PESTLE analysis for TESCO

GDP and the Business Cycle

(If time activity) How do businesses respond to changes in the competitive environment? http://www.telegraph.co.uk/finance/2915574/Cadbury-gobbles-up-Green-and-Blacks.html http://www.bbc.co.uk/news/business-34957525 http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11987810/Profits-fall-at-Sainsburys-amid-stiff-competition.html What are the different strategies that firms have adopted above in response to changing environments? Which one do you think is the best? Can you evaluate any of the strategies – what is the issue with them?