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22 Cards in this Set
- Front
- Back
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Environmental scanning
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the monitoring, evaluation and dissemination of information from the external and internal environments to key people within the corporation
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External Environmental Variables
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-Natural environment
-Societal environment -Task environment |
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Natural environment
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Physical resources
Wildlife Climate |
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Societal environment
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social systems that influence long-term decisions. (PEST)
Economic forces Technological forces Political-legal forces Sociocultural forces |
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Task environment
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groups that directly affect a corporation and are affected by the corporation
Ex: Government, Local communities, Suppliers |
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Industry
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a group of firms that produces a similar product or service
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Porter’s 5 forces
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1. Threat of new entrants
2. Rivalry among existing firms 3. Threat of substitute products 4. Bargaining power of buyers 5. Bargaining power of suppliers 6. Relative power of other stakeholders (added) |
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Entry barrier
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an obstruction that makes it difficult for a company to enter an industry. Greater entry barriers indicates reduced threat of new entrants.
Ex: Economies of scale, Access to distribution channels, cost advantages |
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Rivalry Among Existing Firms
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-Number of competitors
-Rate of industry growth -Product or service characteristics -Amount of fixed costs -Capacity -Height of exit barriers |
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Threat of Substitute Products or Services
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products that appear different but can satisfy the same need as another product.
Ex: Coffee factors will affect the tea industry. The closer the substitute the greater the threat. |
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Bargaining Power of Buyers
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ability of buyers to force prices down, bargain for higher quality, play competitors against each other
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Bargaining Power of Suppliers-
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ability of suppliers to raise prices or reduce quality
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Fragmented industry-
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no firm has a large market share and each firm only serves a small piece of the total market in competition with other firms
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Consolidated industry-
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domination by a few large firms, each struggles to differentiate products from its competition
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Strategic group
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a set of business units or firms that pursue similar strategies with similar resources
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Defenders (Strategic)
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focus on improving efficiency
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Prospectors (Strategic)
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focus on product innovation and market opportunities
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Analyzers (Strategic)
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focus on at least two different product market areas
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Reactors (strategic)
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lack a consistent strategy-structure-culture relationship
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Hypercompetition
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Creates a condition of disequilibrium and change
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Competitive intelligence (business intelligence)
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a formal program of gathering information on a company’s competitors
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Useful forecasting techniques
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Delphi technique
Statistical modeling Prediction markets Cross impact analysis Extrapolation Brainstorming Expert opinion Industry Scenario |
