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Ch 3 -1
Chapter 3
The External Assessment
Strategic
Management:
Concepts & Cases
11thEdition
Fred David
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Ch 3 -2
Identi! & Eval"ate actors #e!ond
the control o a single irm
Increased oreign competition
$op"lation shits
Inormation technolog!
External Strategic
Management A"dit
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Ch 3 -3
Competitors
S"ppliers
Distri#"tors
Creditors
C"stomers
Emplo!eesComm"nities
Managers
Stoc%holders
a#or 'nions
Special Interest (ro"ps$rod"cts
Services
)e!
ExternalForces
*pport"nities&
Threats
)e! External Forces & the *rgani+ation
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Ch 3 -4
$erorming External A"dit
External
Factors
Meas"ra#le
ong,term orientation
Applica#le to
competing irms
-ierarchical
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Ch 3 -5
Economies o Scale
Ind"str! $roperties
.arriers to mar%et entr!
$rod"ct dierentiation
evel o competitiveness
I/* $erspective Firm $erormance
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Ch 3 -6
Social0 C"lt"ral0 Demographic
& Environmental Forces
U.S. Facts
Aging population
Less Caucasian
Widening gap between rich & poor
202 ! "#.$ population % 'ears20( ! no ethnic or racial
)a*orit'
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Ch 3 -7
)e! Social0 C"lt"ral0 Demographic &
Environmental aria#les
+u)ber o, )arriages & di-orces
+u)ber o, special interest groups
+u)ber o, births & deaths
))igration & e)igration rates
Childbearing rates
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Ch 3 -8
$olitical0 (overnment & egal
Forces
Worldwide trend toward si)ilar
consu)ption patterns
/lobal bu'ers and sellers
1co))erce
echnolog' ,or instant currenc' trans,ers
(lo#ali+ation o Ind"str!
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Ch 3 -9
Competitive Forces
Strengths
2ea%nesses
Capa#ilities
*pport"nities
Threats
*#ectives
Strategies
Identi!ing 4ival Firms
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Ch 3 -10
Competitive Forces
15 Mar%et share matters65 'nderstand 7hat #"siness !o" are
in
35 .ro%e or not0 ix it
85 Innovate or evaporate
9 Characteristics o mostCompetitive '5S5 Firms:
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Ch 3 -11
Competitive Forces
5 Ac;"isition is essential to gro7th
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Ch 3 -12
The Five,Forces Model o Competition
Potential developmentof substitute products
Rivalry amongcompeting rms
Bargaining powerof suppliers
Potential entry of newcompetitors
Bargaining powerof consumers
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Ch 3 -13
The (lo#al Challenge
Faced b' U.S. Fir)s 11
/ain & )aintain e3ports to other
nations
4e,end do)estic )ar5ets againsti)ported goods
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Ch 3 -14
Ind"str! Anal!sis: The External Factor
Eval"ation >EFE? Matrix
CompetitivePoliticalCultural
Technological
EnvironmentalSocial
Governmental
DemographicEconomic
S"mmari+e & Eval"ate
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Ch 3 -15
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Ch 3 -16
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Ch 3 -17
otal weighted score o, 6.0 7rgani8ation response is outstanding
to threats
and wea5nesses
Ind"str! Anal!sis EFE
otal weighted score o, ".0 Fir)9s strategies not capitali8ing on
opportunities
or a-oiding threats
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Ch 3 -18
Ind"str! Anal!sis: Competitive $roile
Matrix >C$M?
denti,ies ,ir)9s )a*or co)petitors
and their strengths & wea5nessesin relation to a sa)ple
,ir)9s
strategic positions
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Ch 3 -19
(ate7a! Apple Dell
CSF@s 2t 4ating 2t@dScore
4ating
2t@dScore
4ating 2t@dScore
:ar5et share 0." ; 0.6 2 0.;0 6 0.0
n-entor' s's 0.0# 2 0." 2 0." 6 0.;2
Fin. position 0."0 2 0.20 ; 0.;0 ; 0.;0
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Ch 3 -20
(ate7a! Apple Dell
CSF@s >cont@d? 2t 4ating 2t@dScore
4ating
2t@dScore
4ating 2t@dScore
