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