strategic management dr. bill todorovic copyright © 2008 the mcgraw-hill companies, inc. all rights...
TRANSCRIPT
Strategic Management Dr. Bill TodorovicStrategic Management Dr. Bill Todorovic
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
2
Analyzing the External Environment of the Firm
2- 2
Understanding the Environment
• External Scanning
• External Monitoring
• Competitive Intelligence
2- 3
Creating the Environmentally Aware Organization
2- 6
What Competitive Intelligence Is and Is Not
Competitive Intelligence Is …
1. Information that has been analyzed to the point where you can make a decision.
2. A tool to alert management to early recognition of both threats and opportunities.
3. A means to deliver reasonable assessments.
4. A way of life, a process.
Competitive Intelligence Is Not …
1. Spying. Spying implies illegal or unethical activities. It is a rare activity.
2. A crystal ball. Competitive Intelligence is good approximation of reality; it does not predict the future.
3. Database search. Data by itself is not good intelligence.
4. A job for one smart person.
Adapted from Exhibit 2.2 What Competitive Intelligence Is and Is Not!
2- 8
Environmental Analysis
• SWOT Analysis
• Segments of the general environment
• General environmental trends and events
2- 9
Example
• Harley Davidson SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
Source: Developed from www.harley-davidson.com
2- 10
The General Environment
• Segments of the general environment include:
- Demographic- Sociocultural- Legal/Political- Technological- Economic- Global
• General environmental trends and events:- Little ability to predict them- Even less ability to control them- Can vary across industries
General Environmen
t
2- 11
Environmental Analysis
• SWOT Analysis
• Segments of the general environment
• General environmental trends and events
• Competitive Environment
2- 13
Porter’s Five Forces Model of Industry Competition
2- 14
- Threat of new entrants
- Threat of substitutes
- Power of suppliers
- Power of buyers
- Rivalry among existing firms
Porter’s Five Forces Model of Industry Competition
2- 25
Example
• Porter’s Five Forces Model: BMW- Threat of new entrants
• Very low
- Threat of substitutes• Medium
- Power of suppliers• Medium
- Power of buyers• Medium
- Rivalry among existing firms• Very High
Source: Developed from www.bmw.com