BUSI 4940
Two major components to External Environment
-General/Industry -Competitors
Which four factors have significantly influenced the competitive markets
-Globalization -Rapid Technology Change -Increasing importance of knowledge and people -The global economy
Six Major Components of Strategic Planning
-Strategic Intent -Analysis -Formulation -Implementation -Measurement/Evaluation -Control
Strategic Groups
Goes back to Porter's views that the companies in the same industry use similar resources and therefore pursue similar strategies
Industry Environment
Influence a Firm, Factors that directly affect the company, but the company can have a significant effect back on them as well, Porter's Five Forces Model
General Environment
Influence an Industry, Factors in the external environment that can affect the company, but the company can not really directly affect them back
Economic
Interest rates, inflation rates, GDP, budget deficits/surpluses, personal savings rates, unemployment
Demographic
Mostly statistics based, population, age structure, geographic, ethnic mix, income distribution
technological
Product innovations, industry 4.0 (small factories), industry 5.0 (robotics), service delivery, new medicines
Five Forces
Seller power, buyer power, threat of substitutes, threat of new entry, competitive rivalry
Political/Legal
Tax policies, trade restrictions, tariffs, subsidies, stability of the government, antitrust, health/safety, discrimination, child labor
Global
The extent to which PEST-DEG type factors in other countries affect American or the locations where your firm operates
Sociocultural
Women in the workforce, diversity, shifts in preferences regarding product/service, work-life balance attitudes
Strategy Plan
is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage (textbook definition)
Environmental
natural disasters, weather
Strategic Flexibility involves
uncertainty and risks and organizational inertia
