1. Analysis of the External Environment and Competition

2. Strategic Planning Process
Phase 1:
Determine where
we are now
Phase 2:
Decide where
we would like to be
Phase 3:
Establish strategies
and action plans to
achieve mission
and goals

3. Strategic Planning Process
Phase 1:
Determine where
we are now
Phase 2:
Decide where
we would like to be
Phase 3:
Establish strategies
and action plans to
achieve mission
and goals
-Stakeholder Analysis
SWOT Analysis
Competitor Analysis
- Identify sources of advantage
- Write a Vision Statement
- Write a Mission Statement
- Set Goals
- Develop Strategic
- Develop Action Plans
to implement strategies

4. Phase 1: Determine Where We are Now

5. Stakeholder Defined
A stakeholder is any person, group, or organization that is affected by or can affect the behavior of an organization.

6. Value of Stakeholder Analysis
Forms the basis of the development and refinement of a mission statement. Helps determine organizational goals and strategies.

7. Stakeholder Identification
External Stakeholders
Internal Stakeholders

8. Stakeholder Analysis: External Stakeholders
Highly Important
____________________
Moderately Important
Less Important
Present Level of Effectiveness
____________________

9. Stakeholder Analysis: Internal Stakeholders
Highly Important
____________________
Moderately Important
Less Important
Present Level of Effectiveness
____________________

10. SWOT Analysis + - Internal External Strengths Opportunities Weaknesses
Threats

11. Value of SWOT Analysis + - Internal External Strengths Opportunities
Helps organization prioritize opportunities and develop realistic, well-informed goals and strategies -
Weaknesses
Threats

12. SWOT Analysis Conducting an Internal Analysis
Purpose is to identify assets, resources, skills, and processes that represent either strengths or weaknesses for the organization.
Evaluating the External Environment
Purpose is to identify those aspects of the environment that represent either an opportunity or a threat for the organization.

13. Internal Analysis Identified by Internal Analysis Strengths Weaknesses
Aspects of the organization’s operations that represent potential competitive advantages or distinctive competencies.
Weaknesses
Areas that are in need of improvement.

14. External Analysis Identified by External Analysis Opportunities
Those environmental trends on which the organization can capitalize and improve its competitive position.
Threats
Conditions that jeopardize the organization’s ability to prosper in the long term.

15. Areas That Should Be Evaluated By An Internal Analysis
Management Capabilities
Information Technology
Marketing
Finance
Research & Development
Human Resources

16. Areas That Should Be Evaluated By An External Analysis
General Environment
Includes environmental forces that are beyond the influence of the organization and over which it has no (or little) control.
Task Environment
Includes environmental forces that are within the organization’s operating environment and may be influenced to some degree.

17. Areas That Should Be Evaluated By An External Analysis
General Environment
Economic Factors
Technological Factors
Sociocultural Factors
Political-Legal Factors

18. Areas That Should Be Evaluated By An External Analysis
Task Environment
Competition
Customers
Resource Availability

19. Options for Keeping or Building Strength
Internal Strengths
Options for Keeping or Building Strength
Strength

20. Options for Minimizing or Overcoming Weakness
Internal Weaknesses
Options for Minimizing or Overcoming Weakness
Weakness

21. External Opportunities
Options for Taking Advantage of Opportunity
Opportunity

22. Options for Minimizing or Overcoming Threat
External Threats
Options for Minimizing or Overcoming Threat
Threat

23. Key Strategic Factors

24. Environmental Trends and New Business Opportunities
Economic Factors
State of the economy
Level of disposable income
Consumer spending patterns
Social Factors
Social & cultural trends
Demographic changes
What people think is “in”
Business and/or Product Opportunity Gap
Difference between what’s available and what’s possible
New Business
and Product Ideas
Technology Advances
New technologies
Emerging technologies
New uses of old technologies
Political & Regulatory Changes
Changes in political arena
New laws and regulations

25. Competitor Analysis Slide 1 of 3
What is a Competitor Analysis?
A competitor analysis is a detailed analysis of a firm’s competition.
It helps a firm understand the competitive positions of its major competitors, and the opportunities it has to obtain a competitive advantage in one or more areas.
These are important issues, particularly for new ventures.

26. Competitor Analysis Slide 2 of 3
Types of Competitors
Direct competitors
These are the businesses that offer identical or similar products to the products of the firm completing the analysis.
Indirect competitors
These are businesses that offer close substitutes to the product the firm completing the analysis sells.

27. Competitor Analysis Slide 3 of 3
Types of Competitors (continued)
Future competitors
These are companies that are not yet direct or indirect competitors, but could move into one of these roles at any time.

28. Competitive Intelligence Slide 1 of 2
Sources of Competitive Intelligence
Attend conferences and trade shows
Read or scan industry related publications
Visit competitor’s facilitates and talk to customers, employees, and in general observe what's going on

29. Competitive Intelligence Slide 2 of 2
Sources of Competitive Intelligence
Talk to customers, about what motivated them to buy your product opposed to your competitor
Purchase competitor’s products and study them.
Study competitors’ Web sites
Study Web sites that provide information about companies

30. Competitive Analysis Grid
Is a tool for organizing the information a firm collects about its competitors
It helps a firm see how it stacks up against its competitors, and identifies its primary sources of competitive advantage
A company must be able to prove that it has at least one clear source of competitive advantage over its major competitors

31. Example of a Competitive Analysis Grid Activision

32. Competitive Leadership Grid
Niche
Leadership
Competitor 5
Competitor 6
Competitor 1
YOUR FIRM
Ability to Gain Market Share
Competitor 2
Competitor 3
Competitor 4
Competitor 7
Crisis Potential
Market Leader
Opportunity Alignment