Strategic Management Chapter 2
Monitoring
DETECTING meaning through ongoing observations of environmental changes and trends
Assessing
DETERMINING the timing and importance of environmental changes and trends for firms strategies and their management
Forecasting
DEVELOPING projections of anticipated outcomes based on monitored changes and trends
opportunity
condition in the General Enviroment that if exploited helps a company achieve strategic competitiveness
Strategic Groups
a set of firms emphasizing simlar strategic dimensions and using similar strategies
Studying external environments
firms identify what the MIGHT do (opportunities and threats)
Cometitior Analysis
gathering and interpreting information about all of the companies that the firm competes against
Complementors
the network of companies that sell complementary products or services or are compatible with the focal firms own product or service
Industry environment
Focused on factors and conditions influencing a firm's profitability within an industry demographic, economic, socioeconomic
Competitior Enviroment
Focused on predicting the dynamics of competitors' actions, responses and intentions Political/legal, Technological, Global
Threat
A condition in the General Enviroment that may hinder a companys efforts to achieve strategic competiveness
General Enviroment
Economic, Sociocultural, Global, technological, political/ legal, demographic
strategic dimensions
Extent of technological leadership Product quality Pricing Policies Distribution channels Customer service
Scanning
IDENTIFYING early signals of environmental changes and trends
Unattractive Industry Has
Low entry barriers, Suppliers and Buyers that have strong positions, There are strong threats from substitute products, and intense rivalry among competitors (vice versa for attractive industry)
Industry Fragmentation
Monopoly--> Duopoly--> Fragemented
Discontinues
Product and Process related: Product- new disk drive generation got rid of market leader. Southwest new process changed the airline industry
industry environments
Set of factors directly influencing a firm, its competitive actions, and its competitive responses -threat of new entrants -power of suppliers -power of buyers -product substitutes -intensity of rivalry
Competior Enviroment
all of the companies that the firm competes against
Studying internal environments
determines what a firm CAN do (strengths and weaknesses)
Industry Life cycle
embroyonic. growing, mature, in decline
PESTEL
political, economic, socio-cultural, technological, legal
review slide 13
segments
5 factors
slides 32 -45
