1. Strategic Management Dr. Bill Todorovic Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. So, You want to indentify Opportunities, Eh?

2. 2- 2 Creating the Environmentally Aware Organization

3. 2- 3 What Competitive Intelligence Is and Is Not Competitive Intelligence Is … 1.Information that has been analyzed to the point where you can make a decision. 2.A tool to alert management to early recognition of both threats and opportunities. 3.A means to deliver reasonable assessments. 4.A way of life, a process. Competitive Intelligence Is Not … 1.Spying. Spying implies illegal or unethical activities. It is a rare activity. 2.A crystal ball. Competitive Intelligence is good approximation of reality; it does not predict the future. 3.Database search. Data by itself is not good intelligence. 4.A job for one smart person. Adapted from Exhibit 2.2 What Competitive Intelligence Is and Is Not!

4. 2- 4 The General Environment Segments of the general environment include: -Demographic -Sociocultural -Legal/Political -Technological -Economic -Global General environmental trends and events: -Little ability to predict them -Even less ability to control them -Can vary across industries General Environmen t

5. 2- 5 Porter’s Five Forces Model of Industry Competition

6. 2- 6 -Threat of new entrants -Threat of substitutes -Power of suppliers -Power of buyers -Rivalry among existing firms Porter’s Five Forces Model of Industry Competition

7. 2- 7 Discussion?