1. CHAPTER 4 Environmental Scanning and Industry Analysis
STRATEGIC MANAGEMENT & BUSINESS POLICY 10TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER

2. Societal environment --
Environmental Scanning
Societal environment --
Economic forces
Technological forces
Political-legal forces
Sociocultural forces

3. Societal Environment
Economic Forces --
Regulate exchange of materials, money, energy and information

4. Technological Forces --
Societal Environment
Technological Forces --
Generate problem-solving inventions

5. Political-legal Forces --
Societal Environment
Political-legal Forces --
Allocate power; provide laws and regulations

6. Sociocultural Forces --
Societal Environment
Sociocultural Forces --
Regulate values, mores, and customs of society

7. Task Environment
Task environment --
Elements or groups that directly affect a corporation and are affected by it

8. Task Environment
Industry Analysis --
In-depth examination of key factors within a corporation’s task environment

9. Variables in Societal Environment

10. Demographic Trends

11. 8 Current Trends – Increasing environmental awareness
Transformational Sociocultural Trends
8 Current Trends –
Increasing environmental awareness
Growing health consciousness
Expanding seniors market
Impact of the Generation Y boomlet
Declining mass market
Changing pace and location of life
Changing household composition
Increasing diversity of workforce & market

12. International Societal Environments

13. Scanning the Task Environment

14. Ethical Behavior
“business ethics”
Argument that there is no such thing … it is an oxymoron

15. Corporate practices --
Ethical Decision Making
Corporate practices --
Massive write-downs and restatements of profit
Misclassification of expenses as capital expenditures
Pirating corporate assets for personal gain

16. External Strategic Factors
Strategic myopia --
Willingness to reject unfamiliar as well as negative information

17. Issues Priority Matrix

18. Analyzing the Task Environment

19. Threat of New Entrants – Economies of scale Product differentiation
Porter’s Approach to Industry Analysis
Threat of New Entrants –
Economies of scale
Product differentiation
Capital requirements
Switching costs
Access to distribution channels
Cost disadvantages
Government policy

20. Rivalry Among Existing Firms – Number of competitors
Porter’s Approach to Industry Analysis
Rivalry Among Existing Firms –
Number of competitors
Rate of industry growth
Product or service characteristics
Amount of fixed costs
Capacity
Height of exit barriers
Diversity of rivals