Kelompok IV:

Dita Suryadinata

Mohammad Indra

Nurul Ismah

Radhika Hartami Putri

Rezky Daniel

Strategi Formulasi

Strategi Implementasi

Strategi Evaluasi

The purpose of an external audit is to develop a finite list of opportunities that could benefit a firm and threats that should be avoided

Key External Forces The Process of Performing an External Audit

(1) economic forces; (2) social, cultural, demographic,

and natural environment forces; (3) political, governmental, and

legal forces; (4) technological forces; and (5) competitive forces.

The process of performing an external audit must involve as many managers and employees as possible

Key External Forces

Relationships Between Key External Forces and an Organization

Gather competitive intelligence and information about economic, social, cultural, demographic, environmental, political, governmental, legal, and technological trends-------------------------------------------------------------------------------------------- Individuals can be asked to monitor various sources of information.Once information is gathered, it should be assimilated and evaluated. --------------------------------------------------------------------------------------------Make a meeting or series of meetings of managers Identify the most important opportunities and threats facing the firm. Rank the factors identified, from 1 for the most important opportunity/threat to 20 for the least important opportunity/threat.A final list of the most important key external factors should be communicated and distributed widely in the organization

External (industry) factors are more important than internal factors in a firm achieving competitive advantage.

• Focuses on analyzing external forces and industry variables as a basis for getting and keeping competitive advantage

• External factors in general and the industry in which a firm chooses to compete has a stronger influence on the firm’s performance than do the internal functional decisions managers make in marketing, finance, and the like

• Firm performance, they contend, is primarily based more on industry properties, such as economies of scale, barriers to market entry, product differentiation, the economy, and level of competitiveness than on internal resources, capabilities, structure, and operations.

Example : “The global economic recession’s impact on both strong and weak firms has added credence of late to the notion that external forces are more important than internal.”

Economic factors have a direct impact on the potential attractiveness of various strategies.

• People today are more willing than ever to pay for good service if it limits inconvenience.

• Improved customer service, immediate availability, trouble-free operation of products, and dependable maintenance and repair services are becoming more important.

Example : 1.when interest rates rise, funds needed for capital expansion become

more costly or unavailable (economic variable)2.An economic variable of significant importance in strategic planning is

gross domestic product (GDP), especially across countries.3.Trends in the currency’s value have significant and unequal effects on

companies in different industries and in different locations

• Social, cultural, demographic, and environmental trends are shaping the way people live, work, produce, and consume.

• New trends are creating a different type of consumer and, consequently, a need for different products, different services, and different strategies.

Federal, state, local, and foreign governments are major regulators, deregulators, subsidizer, employers, and customer of organization.

For Industries and firms that depend heavily on government contracts or subsidies, political forecasts can be the most important part of an external audit

Political, Govermental, and Legal factors, therefore, can represent key opportunities or threat for both small and large organization

The internet has changed the very nature of opportunities and threats by altering:

Chief Information OfficerChief Technology Officer

To ensure that information needed to formulate, implement,

and evaluate strategies is available where and when it is

needed.These individuals are responsible for developing, maintaining, and

updating a company’s information database.More a manager,

managing the firm’s relationship with stakeholders

More a technician, focusing on technical issues such as data acquisition, data processing, and etc.

Technological advancements can: Create new markets, Result in a proliferation of new and improved products, Change the relative competitive cost positions in an industry, Render existing products and services obsolete.

An important part of an external audit is identifying rival firms and determining their strengths, weaknesses, capabilities, opportunities, threats, objectives, and strategies.

Characteristics of the most competitive companies:

A. Market share mattersB. Understand and remember precisely what business you

are inC. Whether it’s broke or not, fix it–make it betterD. Innovate or evaporateE. Acquisition is essential to growthF. People make a differenceG. There is no substitute for quality

“Competitive Intelligence is a systematic and ethical process for gathering and analyzing information about the competition’s activities and general business trends to further a business’s own goal”

-Society of Competitive Intelligence Professionals (SCIP)-

The three basic objectives of a CI program are: 1.to provide a general understanding of an industry and its competitors2.to identify areas in which competitors are vulnerable and to assess the impact strategic actions would have on competitors3.to identify potential moves that a competitor might make that would endanger a firm’s position in the market

Market commonality the number and significance of markets that a firm competes in with rivals

Resource similarity

the extent to which the type and amount of a firm’s internal resources are comparable to a rival

Lingkungan eksternal diluar perusahaan sangat mempengaruhi terhadap pertumbuhan perusahaan dalam menentukan arah serta tindakan yang berpengaruh terhadap penentuan strategi pemasaran bagi perusahaan

1. Current Environment

2. Industry Trends

3. How the Industry Operates

4. Key Industry Ratios and Statistics

5. How to Analyze a Company

6. Glossary of Industry Terms

7. Additional Industry Information

8. References

9. Comparative Company Financial Analysis

Forecasting is a complex activity because of factors such as technological innovation, cultural changes, new products, improved services, stronger competitors, shifts in government priorities, changing social values, unstable economic conditions, and unforeseen events.

quantitative techniques qualitative techniques.

Forecasting tools

most appropriate when

Historical data are available;

the relationships among key variables are expected to remain the same in the future.

Planning would be impossible without assumptions.

needed only for future trends and events that are most likely to have a

significant effect on the company’s business.

© 2011, 2009, 2007 by Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458

Quantify the factors as much as possible in constructing an EFE Matrix.

The total weighted score is 2.58 of 4, so this cinema business is doing pretty well, taking advantage of the external opportunities and avoiding the threats facing the firm.

identifies a firm’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position.

critical success factors in a CPM include both internal and external issues

© 2011, 2009, 2007 by Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458

factors often included in this analysis include breadth of product line, effectiveness of sales distribution, proprietary or patent advantages, location of facilities, production capacity and efficiency, experience, union relations, technological advantages, and e-commerce expertise.

Numbers reveal the relative strengths of firms, but their implied precision is an illusion.

Numbers are not magic. The aim is not to arrive at a single number, but rather to assimilate and evaluate information in a meaningful way that aids in decision making.

1. External Audit has become an explicit and vital part of strategic management process.

2. There are 10 major external forces that affect organizations : economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive.

3. Using information technology to devise a competitive intelligent system is one of our job to ensure the development of an effective external audit system.

4. The external audit process that we have explained can be used effectively by any size or type of organization.

5. The EFE Matrix and Porter’s Five-Forces Model can help strategist evaluate the market and industry