1. 4-1 Chapter 4 - Environmental Scanning Societal Environment -- –Economic Forces –Technological Forces –Political-legal Forces –Sociocultural Forces

2. 4-2 Societal Environment Economic Forces -- –Regulate exchange of materials, money, energy and information

3. 4-3 Societal Environment Technological Forces -- –Generate problem-solving inventions

4. 4-4 Societal Environment Political-legal Forces -- –Allocate power; provide laws and regulations

5. 4-5 Societal Environment Sociocultural Forces -- –Regulate values and customs of society

6. 4-6 Task Environment Task Environment -- –Elements or groups that directly affect a corporation and are affected by it

7. 4-7 Task Environment Industry Analysis -- –In-depth examination of key factors within a corporation’s task environment

8. 4-8 Variables in Societal Environment

9. 4-9 Demographic Trends

10. 4-10 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

11. 4-11 International Societal Environments

12. 4-12 Scanning the Task Environment

13. 4-13 Ethical Behavior “Business Ethics” –Argument that there is no such thing … it is an oxymoron

14. 4-14 Ethical Decision Making Corporate Practices -- –Massive write-downs and restatements of profit –Misclassification of expenses as capital expenditures –Pirating corporate assets for personal gain

15. 4-15 External Strategic Factors Strategic Myopia -- –Willingness to reject unfamiliar as well as negative information

16. 4-16 Issues Priority Matrix

17. 4-17 Analyzing the Task Environment

18. 4-18 Porter’s 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

19. 4-19 Porter’s 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

20. 4-20 Porter’s Approach to Industry Analysis Threat of Substitute Products or Services Bargaining Power of Buyers Bargaining Power of Suppliers Relative Power of Other Stakeholders

21. 4-21 Industry Evolution Fragmented Industry – –No dominant industry

22. 4-22 Industry Evolution Consolidated Industry – –Dominated by a few large firms

23. 4-23 International Risk Assessment Continuum of International Industries

24. 4-24 Strategic Groups

25. 4-25 Strategic Types Defenders Prospectors Analyzers Reactors General Types –

26. 4-26 Competitive Intelligence Called business intelligence Gathering information on a company’s competitors

27. 4-27 Forecasting Forecasting Techniques -- –Extrapolation –Brainstorming –Expert opinion –Delphi technique –Statistical modeling –Scenario writing

28. 4-28 Synthesis of External Factors -- EFAS