Transcript Document 7848999

EXTERNAL ANALYSIS
•Some cases
•Societal (Macro) Environment
•Task (Micro) Environment
•Porter & Freeman
•Sensing & Forecasting
OPPORTUNITIES AND
THREATS
•The external environment will
determine, in large part, the future of
the firm, at two levels
1. Societal (Macroenvironment)
» S ociocultural
» T echnological
» E conomic
» P olitical - Legal
2. Task (Microenvironment)
» Competitive factors
FIRST, THE
MACROENVIRONMENT
Sociocultural
Demographics
Attitudes
Styles
Life styles
Economic
GNP
Interest rates
Unemployment
Taxes
Technical
New products
Innovation
Productivity
R&D
Political-Legal
Environment
Laws
Anti-trust
Stability
NOW, FOR THE
MICROENVIRONMENT &
COMPETITIVE FACTORS
Company
Industry
Society
PORTER’S MODEL
•A firm is most affected by
developments in its industry -basic competitive forces
» Current and Projected
PORTER’S FIVE FACTORS
1. Threat of New Competitors
(Long distance, cable)
2. Rivalry Among Existing Firms
(Bud v. Miller)
3. Threat of Substitute Products (Air
v. auto)
4. Power of Buyers (WalMart)
5. Power of Suppliers (Intel, Air to
Tortola)
FREEMAN’S SIXTH FACTOR
6. Power of other industry
stakeholders
– Environmentalists (SWPCC)
– Communities (VT v. WalMart)
– Banks (Covenants)
– Unions (AAUP)
– Government agencies (Regents)
– More
INTELLIGENCE &
FORECASTING
•Environmental Sensing
– Internal System (Belasco & Stayer)
– Outside Agents (D & B, CBD, databases)
– Spying and Offensive Hiring
•Dangerous Area
– DeLorean’s view on GM’s forecasting
– Change at an increasing rate
– Drucker’s discontinuities