1. CHAPTER 4 Environmental Scanning and Industry Analysis
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2. Societal environment --
Environmental Scanning
Societal environment --
Political-legal forces
Economic forces
Sociocultural forces
Technological forces
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3. Political-legal Forces --
Societal Environment
Political-legal Forces --
Allocate power; provide laws and regulations
Economic Forces --
Regulate exchange of materials, money, energy and information
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4. Sociocultural Forces --
Societal Environment
Sociocultural Forces --
Regulate values, mores, and customs of society
Technological Forces --
Generate problem-solving inventions
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5. Task Environment
Task environment --
Elements or groups that directly affect a corporation and are affected by it
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6. Task Environment
Industry Analysis --
In-depth examination of key factors within a corporation’s task environment
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7. Variables in Societal Environment
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8. 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
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9. Scanning the Task Environment
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10. External Strategic Factors
Strategic myopia --
Willingness to reject unfamiliar as well as negative information
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11. Issues Priority Matrix
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12. Analyzing the Task Environment
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13. 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
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14. 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
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15. Threat of Substitute Products or Services Bargaining Power of Buyers
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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16. Fragmented Industry – No dominant industry Industry Evolution
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17. Consolidated Industry – Dominated by a few large firms
Industry Evolution
Consolidated Industry –
Dominated by a few large firms
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18. Strategic Groups
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19. General Types – Defenders Prospectors Analyzers Reactors
Strategic Types
General Types –
Defenders
Prospectors
Analyzers
Reactors
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20. Gathering information on a company’s competitors
Competitive Intelligence
Called business intelligence
Gathering information on a company’s competitors
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21. Forecasting Techniques --
Extrapolation
Brainstorming
Expert opinion
Delphi technique
Statistical modeling
Scenario writing
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22. Synthesis of External Factors -- EFAS
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