3, 4 & 5 Flashcards
(47 cards)
Network of interconnected major groups viewed as a unit and sharing a common culture
Society
Determine the strategic forces that can influence the growth and future of a company
Societal Environment
Political systems, tax laws, government programs and priorities under the political or legal segment directly affect a business or the industry where it operates.
The Political or Legal Segment
The growth or recession of the economy, which is manifested by key economic indicates such as interest rates, inflation rates, and unemployment levels, affect all types of business.
The Economic Segment
refers to the customs, traditions, values, beliefs, and lifestyles in a society for a period of time.
The Sociocultural Segment -
The accelerates pace of changes and advancements in technology and communication has tremendously affected almost all types of business across industries. This segment can make product obsolete overnight and, at the same time, provide opportunities for creating new products in a short period of time.
The Technological Segment
refers to the observable characteristics of a population including age distribution, sex,race, ethnicity, religion, and income.
Demographic Segment
Variables included in this segment are the global trade liberalization, trade agreements among regional blocks.
Global Segment
The immediate external environment of a company. It is the environment where a company operates, which has an immediate effect on its operation, and where it interacts and faces its direct competitors. Sometimes referred to as the competitive environment of a company. To determine the level of competition and the forces that drive competition in the industry for a business to position itself accordingly.
INDUSTRY ENVIRONMENT
are the buyers of goods or services produced or rendered by a company.
Customers
Refer to persons or companies that provide the required materials, parts, or services to a business. Play a crucial role in production of goods and services.
Suppliers
Refer to banks, financial institutions, and financial intermediaries engaged in lending money to a borrower, usually for a fee in the form of interest.
Creditors
are the workers of a company who are highly responsible for the production of goods or delivery of services to the consumers. Help ensure the quality and quantity of products. The are the backbone of a business.
Employees
Refers to the system or institution that handles the affairs of a particular country.
Government
- are forces existing in the industry environment that produce, sell, or render products or services which are similar to those of a company
Competitors
slow growth, high prices, innovative efforts and poor distribution channels.
Embryonic or New Industry
haracterized by growing customer demand, falling prices because of the economies of scale, new competitors entering the market, developed infrastructure facilities, and improved distribution channels.
Growth Industry
once the demand and growth begin to slow down, industry moves to _____ Where competition is intense, companies have excess production, and prices are cut down to attract customers
Shakeout Industry
characterized by saturated market, slow growth, and limited demand. Companies at this stage consolidate to reduce intense rivalry.
Mature Industry
Mainly Negative Growth
Decline Industry
- This force is the strongest among competitive forces.
Rivalry among Competing Companies
refer to the new competitors joining an industry. They will bring new products, services to an industry that can erode profits of established companies.
Threat of New Entrants
A buyer has a strong and magnified bargaining power in an Industry
Bargaining Power of Buyers
substitute product pose great threats in an industry environment.
Threats of Substitute Products
