W3 Lecture 2 Flashcards
PESTLE
Political Factors: Political Stability, Regime orientations, Government Stability, Pressure group, Trade union power.
Economic Factors: Business Cycle, Interest rates, Inflation Rates, Investment levels, Unemployment, GNP trends, Patterns of ownership.
Socio-cultural: Demographics, Lifestyles, Social mobility, Educational levels, Attitudes, Consumerism.
Technological: Levels and focuses of government and industrial R & D expenditure, speed of technology transfer, Product life cycle
Legal: Legislative structure, Anti-trust laws, Trade policies, Employment legislation, Foreign trade regulation
Environment: Sustainability legislation, Green issues, Energy supply
SWOT SWOT Limitations (Take Brexit as a case)
Strengths Weaknesses, Opportunities, Threats
perception-based evaluation and information asymmetry
PORTER
- Threat of new entrants
- Bargaining power of suppliers
- Bargaining powers of buyers
- Threat of substitute products or services
- Rivalry among existing competitors
RBV - Resource-based view
Elements of the framework:
- defining the firm’s resources that present internal strengths and weaknesses.
- the organizations’ combined resources form a number of capabilities.
- These resources and capabilities provide a sustainable competitive advantage
- This sustainability derives from linking the organization’s unique resources and capability across time
- The characteristics of resources and capabilities are important in sustaining competitive advantage.
Value Chain Analysis (VCA)
Value chain represents the internal activities a firm engages in when transforming inputs into outputs. Primary Activities: -Inbound logistic - Operations - Outbound logistics - Marketing n sales - Services Supporting Activities - Firm infras - HRM - Techno Deve - Procurement
Online Marketplace
Analysis
f
Micro-Environment
The micro environment includes those forces that directly affect, and are affected by, an organization’s major operations. Including: Suppliers, Customers, Competitors, Distributors
Internet Macro-Environment
The macro environment includes general forces that do not directly touch on the short-run activities of the organization but can influence its long-run strategic decisions.
Macro environment: Political, Economic, Socio-cultural, Technological, Legal, Environment
Why a fast-growing industry is not always a profitable one?
i
How eliminating today’s competitors through merger and acquisition can reduce an industry’s profit potential?
j
How government policies play a role by changing the relative strength of the forces?
k
How to use the forces to understand complements?
l
Why industry profitability is what it is?
m
How a company can influence the key forces in its industry to create a more favorable structure for itself or to expand the pie together?
a
5 competitive forces that shape strategy?
- Threat of new entrants
- Bargaining power of suppliers
- Bargaining powers of buyers
- Threat of substitute products or services
- Rivalry among existing competitors
