Chapter 5 - Environmental Analysis and Strategic Uncertainty

Question 1

Environmental Analysis

Answer 1

Technology trends
Government/Economic trends
Consumer trends 
General external analysis question
Scenarios

Question 2

Technology trends

Answer 2

To what extent are existing technologies maturing?

What technological development or trends are affecting or could affect the industry

Question 3

Government/Economic Trends

Answer 3

What changes in regulation are possible? What will their impact be?
What are the political risks of operating in governmental jurisdiction?
What are the economic prospects and inflation outlets for the countries in which the firm operates? How will they affect strategy?

Question 4

Consumer Trends

Answer 4

What are the current or emerging trends in lifestyles, fashions, and other components of culture? Why? What are their implications?
What demographic trends will affect the market size of the industry or its submarket? What demographic trends represent opportunities or threats?

Question 5

General external analysis questions

Answer 5

What are the significant trends and future events?
What are the threats and opportunities?
What are the key areas of uncertainty as to trends or events that have the potential the impact strategy?
Evaluate these strategic uncertainties in terms of their impact and immediacy

Question 6

Scenarios

Answer 6

What strategic uncertainties are worth being the basic of a scenario analysis?

Question 7

Technology trends

Answer 7

Innovations

• Transformational/Fundamental changes to the assets and and competencies needed ex cars, smart phones
• substantial/significant change as in a new generation offering ex windows vista
• incremental makes the offering more attractive or less costly

Question 8

Consumer trends

Answer 8

Being green

• practical functional benefits to customers and firms
• global warming
• generate respect from customers/employees

Examples company’s going

Question 9

Strategic uncertainties categories

Answer 9

Low
High Monitor and analyze, contingent strategies considered

              High High     Analyze in-depth; develop strategy

          Low Low     Monitor

          High Low    Monitor and analyze

Question 10

Scenario analysis

Answer 10

Identify scenarios - > relate scenarios to existing or proposed strategies - > estimate scenario probability’s