Strategic Management 492 chapter 4
Eco-efficiency
Company actions that produce more useful goods and services while continuously reducing resource consumption and pollution
External environment is made of
Remote environment Industry environment Operating environment
External Environment
The factors beyond the control of the firm that influence its choice of direction and action, organizational structure, and internal processes
Industry Environment
The general conditions for competition that influence all businesses that provide similar products and services
Economies of scale
The savings that companies achieve because of the increased volume
Structural attributes
are the enduring characteristics that give an industry its distinctive character
Barriers to entry
are the obstacles that a firm must overcome to enter an industry.
Economic Factors
concern the nature and direction of the economy in which a firm operates
Political Factors
define the legal and regulatory parameters within which firms must operate
Remote Environment
economic, social, political, technological and ecological factors that originate beyond and usually irrespective of any single firm's operating situation
Technological Factors
helps protect and improve the profitability of firms in growing industries.
Social Factors
involve the beliefs, values, attitudes, opinions and life-styles of persons in the firm's external environment as developed from culutral, ecological, demographic, religious and ethnic conditioning
industry
is a collection of firms that offer similar products or services
Technological Forecasting
quasi-science of anticipating environmental and competitive changes and estimating their importance to an organization's operations.
Concentration
refers to the extent to which industry sales are dominated by only a few firms.
