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4-1 Chapter 4 - Environmental Scanning Societal Environment -- –Economic Forces –Technological Forces –Political-legal Forces –Sociocultural Forces
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4-2 Societal Environment Economic Forces -- –Regulate exchange of materials, money, energy and information
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4-3 Societal Environment Technological Forces -- –Generate problem-solving inventions
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4-4 Societal Environment Political-legal Forces -- –Allocate power; provide laws and regulations
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4-5 Societal Environment Sociocultural Forces -- –Regulate values and customs of society
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4-6 Task Environment Task Environment -- –Elements or groups that directly affect a corporation and are affected by it
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4-7 Task Environment Industry Analysis -- –In-depth examination of key factors within a corporation’s task environment
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4-8 Variables in Societal Environment
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4-9 Demographic Trends
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4-10 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
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4-11 International Societal Environments
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4-12 Scanning the Task Environment
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4-13 Ethical Behavior “Business Ethics” –Argument that there is no such thing … it is an oxymoron
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4-14 Ethical Decision Making Corporate Practices -- –Massive write-downs and restatements of profit –Misclassification of expenses as capital expenditures –Pirating corporate assets for personal gain
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4-15 External Strategic Factors Strategic Myopia -- –Willingness to reject unfamiliar as well as negative information
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4-16 Issues Priority Matrix
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4-17 Analyzing the Task Environment
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4-18 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
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4-19 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
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4-20 Porter’s Approach to Industry Analysis Threat of Substitute Products or Services Bargaining Power of Buyers Bargaining Power of Suppliers Relative Power of Other Stakeholders
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4-21 Industry Evolution Fragmented Industry – –No dominant industry
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4-22 Industry Evolution Consolidated Industry – –Dominated by a few large firms
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4-23 International Risk Assessment Continuum of International Industries
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4-24 Strategic Groups
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4-25 Strategic Types Defenders Prospectors Analyzers Reactors General Types –
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4-26 Competitive Intelligence Called business intelligence Gathering information on a company’s competitors
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4-27 Forecasting Forecasting Techniques -- –Extrapolation –Brainstorming –Expert opinion –Delphi technique –Statistical modeling –Scenario writing
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4-28 Synthesis of External Factors -- EFAS
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