The general environment
discussions, observations, opportunities
(3 terms) forecasting: Zara's designers, marketing managers, and buyers work side by side in anon office plan that fosters frequent _____ and promotes the sharing of real-time data as well as field _____ and anecdotes. This allows them to break out of their silos and develop a holistic feel for the market, see how their work fits and sense new _____ as they arise.
competitive intelligence
a firm's activities of collecting and interpreting data on competitors, defining and understanding the industry, and identifying competitors strengths and weaknesses. e.g. car manufacturers are keenly aware of announced cuts or increases in rivalÄs production volume, sales and sales incentives. this allows them to adapt their marketing, pricing, and production strategies. CAUTION: avoid spending TOO MUCH TIME on tracking competitors. Prohibits identifying new ones.
general environment
forces and trends beyond individual industries, little ability to predict them, even less ability to control them, their impact can vary across industries
SWOT
framework for analysing a company's internal and external environment. Identifies opportunities and threats. proactive rather than reactive.
demographic segment
genetic and observable characteristics of a population, including levels of growth of age, density, sex, are, ethnicity, education, geographic region, and income Aging population Rising or declining affluence Changes in ethnic composition Geographic distribution of population Greater disparities in income levels
global segment
influences form foreign countries, including foreign market opportunities, foreign-based competition, expanded capital markets, exchange rates, china economy, rising middle class in emerging countries. Increasing global trade Currency exchange rates Emergence of the Indian and Chinese economies Trade agreements (NAFTA, EU, ASEAN) Creation of WTO (decreasing tariffs/free trade in services)
technological segment
innovation and state of knowledge in industrial arts, engineering, applied sciences, and pure science, and their interaction with society e.g. nanotechnology Genetic engineering Emergence of Internet technology Computer-aided design/computer-aided manufacturing systems (CAD/CAM) Wireless communication Nanotechnology
environmental forecasting
the development of possible projections about the direction, scope, speed and intensity of environmental change. Its purpose it to predict change.
general environment
is composed of factors external to an industry and usually beyond a firm's control. That affects firmÄs strategy. divided into 6 segments: demographic, sociocultural, political/legal, technological, economic, global
control
the general environment includes forces and trends beyond individual industries, little ability to predict them, even less ability to _____ them, their impact can vary across industries
environmental monitoring
a firm's analysis of the external environment that tracks the evolution of environmental trends, sequences of events or streams of activities. Focus on few important trends, deeper analysis
scenario analysis
an in-depth approach to environmental forecasting that involves experts' detailed assessment of society trends, economics, politics, technology or other dimensions of the external environment.
environmental scanning
broad surveillance of a firm's external environment to predict environmental changes and detect changes already under way. This alerts the organisation to critical trends before changes develop a discrete pattern and before competitors recognise them.
plotical/legal segment
how a society creates and exercises power, including rules, laws and tax policies. Impact on governance of corporations, high tech sector: expansing the number of temporary visas available for highly skilled foreign professionals Competition and anti-monopoly laws Intellectual property protection laws Environmentally protective laws: carbon price Deregulation Taxation laws Contract law
knowing, around
spotting key trends requires a combination of ____ your business and customers as well as keeping an eye on what is happening ____ you, big picture/small picture allows to identify emerging trends
opportunities and threats
successful managers must recognise _____ and ____ in their firms' external environment. A firm's strategy may be good at one point in time but it may go to astray when management's frame of reference gets out of touch with the realities of the actual business situation.
economic segment
the economy affects al industries. key economic indicators include interest rates, unemployment rates, the consumer price index, gross domestic product, and net disposable income Interest rates Unemployment Consumer Price index Trends in GDP Changes in stock market valuations Middle class growth
sociocultural segment
the values, beliefs and lifestyles of a society More women in the workforce Dual-income families Increase in temporary workers Greater concern for healthy diets and physical fitness Greater interest in the environment Postponement of having children