1. Hierarchy of External Influences
Social
Economic
Technical
Global
Political/Legal
Remote Environment
Competitive Environment
Firm
Five Forces
Competitor Intelligence
Industry Structure
Strategic Groups
Political/Legal

2. Social Influencers (Stakeholders)
Shareholders
Government
Financial Community
Host Community
Ecological Environment
Society in General
Remote Environment
Competitive Environment
Firm
Rivals
Customers
Suppliers
Employees
Managers
Board Members

3. Social Influence on International Strategy
Acme GmbH
WOS in
Germany
Acme Inc.
HQ in U.S.
Cervesa SA
JV in Mexico
Gang Ped LTD
Contract Supplier
in Thailand

4. Stakeholder Analysis Who are they? How can they be classified?
How do they exert influence?
What is level of threat [opportunity] ?

5. Stakeholder Management
Establish communication
Establish mutual satisfaction of needs via negotiation
Motivating stakeholders
Financial
Political
Cultural
Persuasion

7. Social Influence on Strategy
Financial goals vs. “caving in”
Business-level strategy:
Revise goals?
How to adjust value chain activities?
Can social influence be a good thing?
Corporate-level strategy:
Portfolio management?
Transformation?

8. Stakeholders and Influence
Other Co.’s
owning
stock
Managers
Board
Stockholders
Ownership
Employees
Customers
Suppliers
Competitors
Type of Stake in
Firm Operations
Economic
Dependence
JV Partners
Creditors
IRS
Competitors
Suppliers
Customers
Activist
groups
Government
Media
EPA
OSHA
SEC
Social
Regulatory
Economic
Political
Influence on Firm Behavior

9. Environmental Scanning Grid

10. External Influences on Five Forces
(+) or (-) influence...
Threat of New Entrants
Threat of New Entrants
More
Competitive
Bargaining Power of Suppliers
Rivalry Among Competing Firms in Industry
Bargaining Power of Buyers
Threat of Substitute Products
Less
Competitive 23

11. Human Resource Management Technological Development
Social Influences on the Value Chain
Firm Infrastructure
Human Resource Management
MARGIN
Technological Development
Procurement
Service
Inbound
Logistics
Outbound
Logistics
Marketing
& Sales
Operations 21

12. Source of Competitive Advantage Breadth of Competitive Scope
Social Influence on
Business-level
Strategy
Source of Competitive Advantage
Cost
Uniqueness
Cost
Leadership
Broad
Target
Market
Different.
Breadth of Competitive Scope
Focused Low Cost
Focused Different.
Narrow
Target
Market 89

13. Social Responsibility and Corp. Strategy