1. Analyzing the Current Situation

2. Today’s Discussion (Overview)
Environmental Scanning and Analysis
Analyzing the Internal Environment
Mission
Resources
Offering
Previous Results
Business Relationships
Keys to Success and Warning Signs

3. Overview Continued Analyzing the External Environment
Demographic Trends
Consumer Demographics
Business Demographics
Economic Trends
Ecological Trends
Technological Trends
Political-Legal Trends
Social-Cultural Trends
Competitor analysis
SWOT Analysis

4. Environmental Scanning
Macro-environment
Broad demographic, economic, ecological, technological, political-legal and social-cultural forces
Micro-environment
Specific groups that more directly influence performance, such as customers, competitors, channel members, partners, suppliers, and employees

5. SWOT Strengths Weaknesses Opportunities Threats
Internal capabilities that can help the firm achieve its goals and objectives
Weaknesses
Internal factors that can prevent the firm from achieving its goals and objectives
Opportunities
External circumstances that the organization might be able to exploit for higher performance
Threats
External circumstances that might hurt the organization’s performance, now or in the future

9. Kodak
Strengths
Weaknesses
Threats
Opportunities

12. Internal Environment (Resources)

13. Offerings (Products) What products are being offered What price points
Which customer segments
What is the age, sales and profit trends
New products
Market share
Importance of each product (supplements)
How does each product support the bottom line
Does one product account for a large % of sales
PLC can it be extended

14. Business Relationships
Do suppliers and distributors
Have the capacity to increase volume if needed
Maintain a suitable quality level
Can be true partners in adding value
Has the roster changed over time
Is the company dependent on one partner

15. Identify warning signs early

16. External Environment 1 2

17. Ryanair 1991 pre low cost ad Low cost no frills Own planes Boeing 737s
Fast turn around 25 minutes on ground
Under utilized Regional airports
Lower fees, Best on time
Carry and stow own bags, no in-flight services
Flight attendants pay for own training and uniform

18. More Ryanair
Pays no fees to computer reservations systems and no commissions
Competition from Major airlines
Easyjet
Marketing costs same per passenger-kilometer
Too much growth?
Documentary

20. Porter’s generic Strategies
Cost leadership
Differentiation
Focus

21. New coke