2 The External Environment Chapter 4The External Environment
3 Learning ObjectivesTiga faktor lingkungan yang mempengaruhi kinerja suatu perusahaan.Lima faktor dalam pengendalian lingkungan.Contoh-contoh pengaruh ekonomi, sosial, politik, teknologi dan ekologi terhadap perusahaan.Model lima kekuatan dari analisis industri dan contoh-contohnya.Pengaruh dari hambatan masuknya pendatang baru, kekuatan suplier, kekuatan pembeli, ketersediaan barang substitusi dan persaingan dalam bisnis.Lima Faktor dalam mengoperasikan lingkungan.Pengaruh pesaing, kreditor, pelanggan, karyawan dan suplier langsung pada perusahaan.
4 The Firm’s External Environment Comprised of following Components:Remote environmentIndustry environmentOperating environment
6 Remote Environment Economic Factors Social Factors Political Factors Technological FactorsEcological Factors
7 Economic Factors Prime interest rates Inflation rates Trends in the growth of the gross national productUnemployment ratesGlobalization of the economyOutsourcing
8 Social Factors Present in the external environment: Developed from: Beliefs & ValuesAttitudes & OpinionsLifestylesDeveloped from:Cultural conditioningEcological conditioningDemographic makeupReligionEducationEthnic conditioning.
9 Political Factors Political constraints on firms: Fair-trade Decisions Antitrust LawsTax ProgramsMinimum Wage LegislationPollution and Pricing PoliciesAdministrative jawboning
10 Technological Factors Technological forecasting helps protect and improve the profitability of firms in growing industries.It alerts strategic managers toimpending challenges andpromising opportunities.The key to beneficial forecasting of technological advancement lies in accurately predicting future technological capabilities and their probable impacts.
11 Ecological FactorsEcology refers to the relationships among human beings and other living things and the air, soil, and water that supports them.Threats to our life-supporting ecology caused principally by human activities in an industrial society are commonly referred to as pollutionLoss of habitat and biodiversityEnvironmental legislationEco-efficiency
12 International Environment Monitoring the international environmentinvolves assessing each non-domesticmarket on the same factors that areused in a domestic assessment.While the importance of factors will differ, the same set of considerations can be used for each country.Economic, political, legal, and social factors are used to assess international environments.One complication to this process is that the interplay among international markets must be considered.
13 Industry EnvironmentHarvard professor Michael E. Porter propelled the concept of industry environment into the foreground of strategic thought and business planning.The cornerstone of Porter’s work first appeared in the Harvard Business Review, in which he explains the five forces that shape competition in an industry.Porter’s well-defined analytic framework helps strategic managers to link remote factors to their effects on a firm’s operating environment.
14 Competitive Forces Shape Strategy The essence of strategy formulation is coping with competition.Intense competition in an industry is neither coincidence nor bad luck.Competition in an industry is rooted in its underlying economics, and competitive forces exist that go well beyond the established combatants in a particular industry.The corporate strategists’ goal is to find a position in the industry where his or her company can best defend itself against these forces or can influence them in its favor.
16 Contending Forces Threat of Entry Economies of Scale Product DifferentiationCapital RequirementsCost Disadvantages Independent of SizeAccess to Distribution ChannelsGovernment Policy
17 Powerful Suppliers A supplier group is powerful if: It is dominated by a few companies andis more concentrated than the industryit sells toIts product is unique or at leastdifferentiated, or if it has built-upswitching costsIt is not obliged to contend with otherproducts for sale to the industryIt poses a credible threat of integrating forward into the industry’s businessThe industry is not an important customer of the supplier group
18 Powerful Buyers A buyer group is powerful if: It is concentrated or purchases inlarge volumesThe products it purchases from the industry are standardThe products it purchases from the industry form a component of its product and represent a significant fraction of its costIt earns low profitsThe industry’s product is unimportant to the quality of the buyers’ products or servicesThe industry’s product does not save the buyer moneyThe buyers pose a credible threat of integrating backward
19 Substitute ProductsBy placing a ceiling on the prices it can charge, substitute products or services limit the potential of an industrySubstitutes not only limit profits in normal times but also reduce the bonanza an industry can reap in boom timesSubstitute products that deserve the most attention strategically are those that aresubject to trends improving their price-performance trade-off with the industry’s product orproduced by industries earning high profits
20 Jockeying for Position Intense rivalry occurs when:Competitors are numerous or are roughly equalIndustry growth is slow, precipitating fights for market share that involve expansionThe product or service lacks differentiation or switching costsFixed costs are high or the product is perishable, creating strong temptation to cut pricesCapacity normally is augmented in large incrementsExit barriers are highRivals are diverse in strategy, origin, and personality
21 Industry Analysis & Competitive Analysis An industry is a collection of firms that offer similar products or services.Structural attributes are the enduring characteristics that give an industry its distinctive character.Concentration refers to the extent to which industry sales are dominated by only a few firms.Barriers to entry are the obstacles that a firm must overcome to enter an industry.
22 Competitive AnalysisHow do other firms define the scope of their market?How similar are the benefits the customers derive from the products and services that other firms offer? The more similar the benefits of products or services, the higher the level of substitutability between them.How committed are otherfirms to the industry?
23 Operating Environment Also called competitive or task environmentIncludes competitor positions and customer profiling based on the following factors:GeographicDemographicPsychographicBuyer BehaviorAlso includes suppliers & creditors and HRM
24 HR: Nature of the Labor Market Access to personnel is affected by 4 factors:Firm’s reputation as an employerLocal employment ratesAvailability of people with the needed skillsIts relationship with labor unions.
25 Emphasis on Environmental Factors Differing external elements affect different strategies at different times and with varying strengthsOnly certainty is that the effect of the remote and operating environments will be uncertain until a strategy is implementedMany managers, particularly in less powerful firms, minimize long-term planningInstead, they allow managers to adapt to new pressures from the environmentAbsence of strong resources and psychological commitment to a proactive strategy effectively bars a firm from assuming a leadership role in its environment