• Like
  • Save
Environ 3
Upcoming SlideShare
Loading in...5
×
 

Environ 3

on

  • 434 views

 

Statistics

Views

Total Views
434
Views on SlideShare
433
Embed Views
1

Actions

Likes
0
Downloads
48
Comments
0

1 Embed 1

http://ig-chowdhury.blogspot.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Environ 3 Environ 3 Presentation Transcript

    • The Environment of Business III
    • Stakeholders
      • Stockholders : dividend
      • price appreciation
      • Customers : product/service
      • quality
      • Employees : employment
      • wages
      • personal growth opportunity
    • Stakeholders
      • Suppliers : revenue through sale
      • growth opportunity
      • Local community : jobs
      • civic involvement economic development
      • Society at large : economic health environment protection
    • The Components of a Company’s MACROENVIRONMENT Legislation and Regulation Societal Values and Lifestyles Population Demographics Technology The Economy at Large COMPANY Suppliers Substitutes Buyers New Entrants Rival Firms  IMMEDIATE INDUSTRY AND COMPETITIVE ENVIRONMENT
    • Political and Legal
      • Deregulation
      • Repeal of Glass-Steigall Act 1999
      • Tort Reform
      • Disabilities Act
    • Economy
      • Interest rate
      • Exchange rate
      • Unemployment
      • Trend in GDP
    • Technology
      • Reduced height of entry barrier
      • Biotechnology
      • Pollution/Global Warming
      • Wireless communication
      • Miniaturization
    • Socio-cultural
        • Health Consciousness
      • Postponement of family formation
      • More women in workforce
      • Greater concern for environment
    • Demography
      • Aging population
      • Rising affluence
      • Greater disparities in income levels
      • Geographic distribution of population
    • Global
      • WTO
      • Currency Exchange Rate
      • Emergence of China and India
    • #1. Dominant Economic Traits
      • Market Size
      • Scope of Competition (Local, Regional, National, Global)
      • Industry Growth Cycle (Early, Takeoff, Mature, Stagnant, Decline)
      • Number of Rivals and their relative sizes
      • Number of Buyers and their relative sizes
      • Prevalence of Backward and Forward Linkage
      • Ease of Entry and Exit
      • Pace of Technological Change
      • Learning Curve Effect
      • Capital Requirement
      • Profitability (above/below par)
    • #2 Porter’s Five Forces Substitute Products (of firms in other industries) Suppliers of Key Inputs Buyers Potential New Entrants Rivalry Among Competing Sellers
    • Bargaining Power of Buyers
      • - Many small companies and few buyers, Large buyers
      • - Buyers can switch orders between suppliers enabling them to play one supplier against another
      • - Vertical integration is a feasible option
    • Suppliers
      • - Product has few substitutes and are important to the buyers
      • - Products are differentiated to the extent that buyers cannot easily switch
      • - Threat of vertical integration
      • - Buying companies cannot threaten with backward integration
    • Rivalry
      • - Demand conditions : growing/declining
      • - Exit barriers : high/low
      • - Competitive structure : fragmented, consolidated
    • Substitutes
      • - Products serving similar consumer needs
      • sugar vs artificial sweetener
      • taxi vs bus
      • private vs public university
    • Threat of Entry
      • - Brand loyalty
      • - Economies of scale
      • - Entry barriers
      • - Govt. regulation
    • Generic Competitive Strategies
      • Two basic types:
      • - Low cost
      • - Differentiation
      • Three generic strategies resulting from the scope of application :
      • - Cost
      • - Differentiation
      • - Focus.
    • Generic Competitive Strategies
      • COST leadership
      • promoted by means such as frugality, discipline and attention to details.
      • DIFFERENTIATION
      • facilitated by a culture of encouraging innovation, individualism and risk taking.
    • Cost OR Differentiation
      • An organizational structure that is supportive of cost leadership can be ruinous for differentiation
      • e.g.
      • tight control system
      • pursuit of scale economies
      • dedication to learning curve.
    • Stuck in the Middle
      • Being all things to all people can be a recipe for disaster and such firms cannot have a sustainable competitive advantage.
      • Whatever strategy is chosen, it has to be sustainable.
      • This can be made through making it difficult for imitators by putting up a moving target.
    • Risks
      • Cost : imitation
              • technology changes proximity to differentiation
      • Differentiation : imitation
      • loss of attraction of differentiation base
      • Focus : imitation
              • target segment gets unattractive
              • new focusers arrive