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Prentice Hall, Inc. © 20064-1 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 4 Environmental Scanning and.

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Presentation on theme: "Prentice Hall, Inc. © 20064-1 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 4 Environmental Scanning and."— Presentation transcript:

1 Prentice Hall, Inc. © STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 4 Environmental Scanning and Industry Analysis

2 Prentice Hall, Inc. © Environmental Scanning Societal environment -- –Economic forces –Technological forces –Political-legal forces –Sociocultural forces

3 Prentice Hall, Inc. © Societal Environment Economic Forces -- –Regulate exchange of materials, money, energy and information

4 Prentice Hall, Inc. © Societal Environment Technological Forces -- –Generate problem-solving inventions

5 Prentice Hall, Inc. © Societal Environment Political-legal Forces -- –Allocate power; provide laws and regulations

6 Prentice Hall, Inc. © Societal Environment Sociocultural Forces -- –Regulate values, mores, and customs of society

7 Prentice Hall, Inc. © Task Environment Task environment -- –Elements or groups that directly affect a corporation and are affected by it

8 Prentice Hall, Inc. © Task Environment Industry Analysis -- –In-depth examination of key factors within a corporations task environment

9 Prentice Hall, Inc. © Variables in Societal Environment

10 Prentice Hall, Inc. © Demographic Trends

11 Prentice Hall, Inc. © Transformational Sociocultural Trends 8 Current Trends – –Increasing environmental awareness –Growing health consciousness –Expanding seniors market –Impact of the Generation Y boomlet –Declining mass market –Changing pace and location of life –Changing household composition –Increasing diversity of workforce & market

12 Prentice Hall, Inc. © International Societal Environments

13 Prentice Hall, Inc. © Scanning the Task Environment

14 Prentice Hall, Inc. © Ethical Behavior business ethics –Argument that there is no such thing … it is an oxymoron

15 Prentice Hall, Inc. © Ethical Decision Making Corporate practices -- –Massive write-downs and restatements of profit –Misclassification of expenses as capital expenditures –Pirating corporate assets for personal gain

16 Prentice Hall, Inc. © External Strategic Factors Strategic myopia -- –Willingness to reject unfamiliar as well as negative information

17 Prentice Hall, Inc. © Issues Priority Matrix

18 Prentice Hall, Inc. © Analyzing the Task Environment

19 Prentice Hall, Inc. © Porters Approach to Industry Analysis Threat of New Entrants – –Economies of scale –Product differentiation –Capital requirements –Switching costs –Access to distribution channels –Cost disadvantages –Government policy

20 Prentice Hall, Inc. © Porters Approach to Industry Analysis Rivalry Among Existing Firms – –Number of competitors –Rate of industry growth –Product or service characteristics –Amount of fixed costs –Capacity –Height of exit barriers –Diversity of rivals

21 Prentice Hall, Inc. © Porters Approach to Industry Analysis Threat of Substitute Products or Services Bargaining Power of Buyers Bargaining Power of Suppliers Relative Power of Other Stakeholders

22 Prentice Hall, Inc. © Industry Evolution Fragmented Industry – –No dominant industry

23 Prentice Hall, Inc. © Industry Evolution Consolidated Industry – –Dominated by a few large firms

24 Prentice Hall, Inc. © International Risk Assessment Continuum of International Industries

25 Prentice Hall, Inc. © Strategic Groups

26 Prentice Hall, Inc. © Strategic Types Defenders Prospectors Analyzers Reactors General Types –

27 Prentice Hall, Inc. © Competitive Intelligence Called business intelligence Gathering information on a companys competitors

28 Prentice Hall, Inc. © Forecasting Forecasting Techniques -- –Extrapolation –Brainstorming –Expert opinion –Delphi technique –Statistical modeling –Scenario writing

29 Prentice Hall, Inc. © Synthesis of External Factors -- EFAS


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