Prentice Hall, Inc. 20084-*STRATEGIC MANAGEMENT & BUSINESS POLICY THOMAS L. WHEELEN J. DAVID HUNGERCHAPTER 4 Environmental Scanning and Industry Analysis

Prentice Hall, Inc. 20084-*International-globalEconomicPolitical/RegulatoryTechnicalSocio-culturalDomestic-nationalEconomicPolitical/RegulatoryTechnicalSocio-culturalIndustrial size and changeIndustrial(Five-forces)Current competitive conditionsCompetitive forces stemming from BuyersCompetitive forces stemming from SuppliersThreat of Potential EntrantsThreat of Substitutes

Environmental ScanningASSESSMENT OF EXTERNAL FACTORS

Prentice Hall, Inc. 20084-*International Societal Environments

Prentice Hall, Inc. 20084-*Political, Governmental, and Legal ForcesWorldwide trend toward similar consumption patternsGlobal buyers and sellersE-commerceTechnology for instant currency transfersGlobalization of Industry

Prentice Hall, Inc. 20084-*Key Political, Governmental, and Legal Variables Special tariffsTax law changesPACs(political action committees)Voter participation ratesRegulation/deregulation

Prentice Hall, Inc. 20084-*Key Political, Governmental, and Legal Variables (contd) Environmental protection lawsChanges in patent lawsEqual employment legislationGovernment subsidiesNumber of patents

Prentice Hall, Inc. 20084-*Key Political, Governmental, and Legal Variables (contd) Import/export regulationsGlobal relationshipsPolitical conditions Location and severity of terrorist activityAnti-trust enforcement

Prentice Hall, Inc. 20084-*Environmental ScanningNatural environment --

Economic forcesTechnological forcesPolitical-legal forcesSociocultural forces

Prentice Hall, Inc. 20084-*Societal EnvironmentEconomic Forces --

Regulate exchange of materials, money, energy and informationTechnological Forces --

Generate problem-solving inventionsPolitical-legal Forces --

Allocate power; provide laws and regulationsSociocultural Forces --

Regulate values, mores, and customs of society

Prentice Hall, Inc. 20084-*Variables in Societal Environment

Prentice Hall, Inc. 20084-*Actuarial RatesMonitor KeyVariablesPer Capita IncomeAttitudes Toward BusinessAvg. Disposable IncomeSocial, Cultural, Demographic, and Environmental Forces

Prentice Hall, Inc. 20084-*Consumer BehaviorMonitor KeyVariablesEthical ConcernsAttitudes Toward SavingRacial EqualitySocial, Cultural, Demographic, and Environmental Forces

Prentice Hall, Inc. 20084-*Avg. Educational LevelMonitor KeyVariablesGovernmental RegulationAttitudes Toward Customer ServiceAttitudes Toward QualitySocial, Cultural, Demographic, and Environmental Forces

Prentice Hall, Inc. 20084-*Energy ConservationMonitor KeyVariablesSocial ResponsibilityLeisure-Time ValuesRecyclingSocial, Cultural, Demographic, and Environmental Forces

Prentice Hall, Inc. 20084-*Waste ManagementMonitor KeyVariablesAir & Water PollutionOzone DepletionEndangered SpeciesSocial, Cultural, Demographic, and Environmental Forces

Prentice Hall, Inc. 20084-*Task EnvironmentTask environment --

Elements or groups that directly affect a corporation and are affected by it

Prentice Hall, Inc. 20084-*Scanning the Task Environment

Prentice Hall, Inc. 20084-*Task EnvironmentIndustry Analysis --

In-depth examination of key factors within a corporations task environment

Prentice Hall, Inc. 20084-*Industrial Organization (I/O) View Industry factors more important than internal factors Performance determined by industry forces

Prentice Hall, Inc. 20084-* Economies of ScaleIndustry PropertiesBarriers to Market EntryProduct DifferentiationLevel of CompetitivenessI/O Perspective Firm Performance

Prentice Hall, Inc. 20084-*Analyzing the Task Environment

Prentice Hall, Inc. 20084-*Porters Five Forces: Factors Affecting the Strength of Rivalry

Prentice Hall, Inc. 20084-*Porters Five Forces: Factors Affecting the Threat of Entry

Prentice Hall, Inc. 20084-*Porters Five Forces: Factors Affecting the Competition from Substitute Products

Prentice Hall, Inc. 20084-*Porters Five Forces: Factors Affecting the Bargaining Power of Suppliers

Prentice Hall, Inc. 20084-*Porters Five Forces: Factors Affecting the Bargaining Power of Buyers

Prentice Hall, Inc. 20084-*Industry EvolutionFragmented Industry

No dominant industry

Prentice Hall, Inc. 20084-*Industry EvolutionConsolidated Industry

Dominated by a few large firms

Prentice Hall, Inc. 20084-*International Risk AssessmentContinuum of International Industries

Prentice Hall, Inc. 20084-*Strategic Groups

Prentice Hall, Inc. 20084-*Competitive IntelligenceCalled business intelligence

Gathering information on a companys competitors

Prentice Hall, Inc. 20084-*ForecastingForecasting Techniques --

ExtrapolationBrainstormingExpert opinionDelphi techniqueStatistical modelingScenario writing

Prentice Hall, Inc. 20084-*Issues Priority Matrix

THANK YOUPrentice Hall, Inc. 20084-*

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