Scanning the Environment Flashcards
External Environment
Natural Environment
Societal Environment
Task Environment
general forces that influence its long run performance.
Societal Environment
Forces of Societal Environment
- Economic Forces
- Technological Forces
- Political Forces
- Socio-Cultural Forces
includes those elements / groups that directly affect a corporation and in turn are affected by it.
Task Environment
scanning of socio-cultural, technological, economic, ecological and political-legal environment.
STEEP Analysis (PESTEL Analysis)
Porter’s Five Forces Analysis
- Rivalry Among Existing Competitors
- Threat of New Entrants
- Threat of Substitute Products and Services
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
is a category of firms based on a common strategic orientation and a combination of structure, culture & processes consistent with that strategy.
Strategic Types
What are the 4 categories/general type
Defenders
Prospectors
Analyzers
Reactors
companies with a limited product line that focus on improving the efficiency of their existing operations.
Defenders
are companies with fairly broad product lines that focus on product innovation and market opportunities
Prospectors
are corporations that operate in at least two different product- market areas.
Analyzers
are corporations that lack a consistent strategy-structure-culture relationship.
Reactors
the frequency, boldness and aggressiveness of dynamic movement by the players accelerates to create a condition of constant disequilibrium and change.
Hyper competition
Forecasting Techniques
Extrapolation
Brainstorming
Expert Opinion
Delphi Technique
Statistical Modeling
Prediction Markets
Scenario Writing
is the extension of present trends into the future.
Extrapolation
is a non-quantitative approach that simply requires the presence of people with some knowledge of the situation to be predicted.
Brainstorming
is a non quantitative technique in which experts in a particular area attempt to forecast likely developments.
Expert Opinion
in which separated experts independently assess the likelihoods of specified events.
Delphi Technique
is a quantitative technique that attempts to discover causal or explanatory factors that link two or more time series together.
Statistical Modelling
is a recent forecasting technique enabled by easy access to the internet.
Prediction Markets
scenarios are focused descriptions of different likely future presented in a narrative fashion
Scenario Writing
is a tool that compares the firm and its rivals and reveals their relative strengths and weaknesses so a company would know, which areas it should improve and, which areas to protect.
It helps to understand the external environment and the competition in a particular industry.
Competitive Profile Matrix (CP)
