Upload
victoria-bates
View
229
Download
4
Tags:
Embed Size (px)
Citation preview
Prentice Hall, Inc. © 2006 4-1
STRATEGIC MANAGEMENT & BUSINESS POLICY10TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
CHAPTER 4 Environmental Scanning and Industry Analysis
Prentice Hall, Inc. © 2006 4-2
Environmental Scanning
Societal environment --
–Economic forces–Technological forces–Political-legal forces–Sociocultural forces
Prentice Hall, Inc. © 2006 4-3
Societal Environment
Economic Forces --
–Regulate exchange of materials, money, energy and information
Prentice Hall, Inc. © 2006 4-4
Societal Environment
Technological Forces --
–Generate problem-solving inventions
Prentice Hall, Inc. © 2006 4-5
Societal Environment
Political-legal Forces --
–Allocate power; provide laws and regulations
Prentice Hall, Inc. © 2006 4-6
Societal Environment
Sociocultural Forces --
–Regulate values, mores, and customs of society
Prentice Hall, Inc. © 2006 4-7
Task Environment
Task environment --
–Elements or groups that directly affect a corporation and are affected by it
Prentice Hall, Inc. © 2006 4-8
Task Environment
Industry Analysis --
–In-depth examination of key factors within a corporation’s task environment
Prentice Hall, Inc. © 2006 4-9
Variables in Societal Environment
Prentice Hall, Inc. © 2006 4-10
Demographic Trends
Prentice Hall, Inc. © 2006 4-11
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
Prentice Hall, Inc. © 2006 4-12
International Societal Environments
Prentice Hall, Inc. © 2006 4-13
Scanning the Task Environment
Prentice Hall, Inc. © 2006 4-14
Ethical Behavior
“business ethics”
–Argument that there is no such thing … it is an oxymoron
Prentice Hall, Inc. © 2006 4-15
Ethical Decision Making
Corporate practices --
–Massive write-downs and restatements of profit–Misclassification of expenses as capital expenditures–Pirating corporate assets for personal gain
Prentice Hall, Inc. © 2006 4-16
External Strategic Factors
Strategic myopia --
–Willingness to reject unfamiliar as well as negative information
Prentice Hall, Inc. © 2006 4-17
Issues Priority Matrix
Prentice Hall, Inc. © 2006 4-18
Analyzing the Task Environment
Prentice Hall, Inc. © 2006 4-19
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
Prentice Hall, Inc. © 2006 4-20
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
Prentice Hall, Inc. © 2006 4-21
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
Prentice Hall, Inc. © 2006 4-22
Industry Evolution
Fragmented Industry –
–No dominant industry
Prentice Hall, Inc. © 2006 4-23
Industry Evolution
Consolidated Industry –
–Dominated by a few large firms
Prentice Hall, Inc. © 2006 4-24
International Risk Assessment
Continuum of International Industries
Prentice Hall, Inc. © 2006 4-25
Strategic Groups
Prentice Hall, Inc. © 2006 4-26
Strategic Types
•Defenders•Prospectors•Analyzers•Reactors
General Types –
Prentice Hall, Inc. © 2006 4-27
Competitive Intelligence
Called business intelligence
Gathering information on a company’s competitors
Prentice Hall, Inc. © 2006 4-28
Forecasting
Forecasting Techniques --
–Extrapolation–Brainstorming–Expert opinion–Delphi technique–Statistical modeling–Scenario writing
Prentice Hall, Inc. © 2006 4-29
Synthesis of External Factors -- EFAS