Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Fred R. David
Prentice Hall
Ch.3-1
Chapter 3
The External Assessment
Strategic Management:
Concepts and Cases. 9th edition...
Fred R. David
Prentice Hall
Ch.3-2
Chapter Outline
• The Nature of an External Audit
• The Industrial Organization View
• ...
Fred R. David
Prentice Hall
Ch.3-3
Chapter Outline
• Political, Governmental, and Legal
Forces
• Technological Forces
• Co...
Fred R. David
Prentice Hall
Ch.3-4
The External Assessment
Prediction is very difficult, especially
about the future.
-- N...
Fred R. David
Prentice Hall
Ch.3-5
External Strategic Management Audit
Also called:
– Environmental scanning
– Industry an...
Fred R. David
Prentice Hall
Ch.3-6
External Strategic Management Audit
External Audit:
– Identification and evaluation of ...
The Industrial Organization
(I/O) View
• The Industrial Organization (I/O)
approach to competitive advantage
advocates tha...
Fred R. David
Prentice Hall
Ch.3-8
Purpose:
– Development of Finite List:
• Opportunities
• Threats to be avoided
Nature o...
Fred R. David
Prentice Hall
Ch.3-9
Five (5) broad categories:
1. Economic forces
2. Social, cultural, demographic, &
envir...
Fred R. David
Prentice Hall
Ch.3-10
Relationships Between Key External Forces
and an Organization
Key
External
Forces
Comp...
Fred R. David
Prentice Hall
Ch.3-11
Performing an External Audit
Gather competitive intelligence on factors:
– Social
– Cu...
Fred R. David
Prentice Hall
Ch.3-12
Performing an External Audit
Key factors:
– Vary over time
– Vary by industry
Fred R. David
Prentice Hall
Ch.3-13
Performing an External Audit
Variables include:
– Market share
– Breadth of competing ...
Fred R. David
Prentice Hall
Ch.3-14
Economic Forces
Monitor Key Economic Variables:
 Availability of credit
 Level of di...
Fred R. David
Prentice Hall
Ch.3-15
Monitor Key Economic Variables:
• Unemployment trends
• Worker productivity levels
• V...
Fred R. David
Prentice Hall
Ch.3-16
Monitor Key Economic Variables:
• Price fluctuations
• Exportation of labor & capital
...
Fred R. David
Prentice Hall
Ch.3-17
Social, Cultural, Demographic &
Environmental Forces
Major impact on:
– Products
– Ser...
Fred R. David
Prentice Hall
Ch.3-18
Social, Cultural, Demographic &
Environmental Forces
• World population > 6 billion
• ...
Fred R. David
Prentice Hall
Ch.3-19
Social, Cultural, Demographic &
Environmental Forces
Trends for the 2000’s –
– More ed...
Fred R. David
Prentice Hall
Ch.3-20
Social, Cultural, Demographic &
Environmental Forces
Key variables –
• Childbearing ra...
Fred R. David
Prentice Hall
Ch.3-21
Monitor Key Variables
• Life expectancy rates
• Per capita income
• Attitudes toward b...
Fred R. David
Prentice Hall
Ch.3-22
Monitor Key Variables
• Racial equality
• Average level of education
• Government regu...
Fred R. David
Prentice Hall
Ch.3-23
Monitor Key Variables
• Value placed on leisure time
• Recycling
• Waste management
• ...
Fred R. David
Prentice Hall
Ch.3-24
Political, Govt., & Legal Forces
Government Regulation
• Key opportunities & key threa...
Fred R. David
Prentice Hall
Ch.3-25
Political, Govt., & Legal Forces
Increasing Global Interdependence
• Impact of politic...
Fred R. David
Prentice Hall
Ch.3-26
Political, Govt., & Legal Forces
Increasing Global Interdependence
• Strategists in a ...
Fred R. David
Prentice Hall
Ch.3-27
Political, Govt., & Legal Forces
Globalization of Industry
• Worldwide trend toward si...
Fred R. David
Prentice Hall
Ch.3-28
Political, Govt., & Legal Forces
Key Political, govt., & legal variables:
• Government...
Fred R. David
Prentice Hall
Ch.3-29
Technological Forces
Internet changes the nature of opportunities and
threats --
• Alt...
Fred R. David
Prentice Hall
Ch.3-30
Technological Forces
Capitalizing on Information Technology (IT)
• Chief Information O...
Fred R. David
Prentice Hall
Ch.3-31
Technological Forces
Technology-based issues
– Underlie nearly every strategic decision
Strategy and Future Forecast
• Linear regression is based on the
assumption that the future will be just
like the past.
Fr...
Fred R. David
Prentice Hall
Ch.3-33
Competitive Forces
Collection and evaluation of information on
competitors is essentia...
Fred R. David
Prentice Hall
Ch.3-34
Competitive Forces
Competition in virtually all industries can be
described as intense.
Fred R. David
Prentice Hall
Ch.3-35
Competitive Forces
Identifying rival firms
• Strengths
• Weaknesses
• Capabilities
• O...
Fred R. David
Prentice Hall
Ch.3-36
Competitive Forces
Key Questions About Competitors:
• Their strengths
• Their weakness...
Fred R. David
Prentice Hall
Ch.3-37
Competitive Forces
Key Questions About Competitors:
• Our vulnerability to successful ...
Fred R. David
Prentice Hall
Ch.3-38
Competitive Forces
Key Questions About Competitors:
• Sales and profit rankings of com...
Fred R. David
Prentice Hall
Ch.3-39
Competitive Forces
Sources of Corporate Information:
• Moody’s Manuals
• Standard Corp...
Fred R. David
Prentice Hall
Ch.3-40
Competitive Forces
Competitive Intelligence Programs:
• Systematic and ethical process...
Fred R. David
Prentice Hall
Ch.3-41
Competitive Analysis: Porter’s Five-
Forces Model
Potential development
of substitute ...
Upcoming SlideShare
Loading in …5
×

of

Strategic Management Slides - Chapter 3 "the External Assessment" Slide 1 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 2 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 3 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 4 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 5 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 6 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 7 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 8 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 9 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 10 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 11 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 12 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 13 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 14 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 15 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 16 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 17 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 18 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 19 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 20 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 21 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 22 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 23 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 24 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 25 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 26 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 27 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 28 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 29 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 30 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 31 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 32 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 33 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 34 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 35 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 36 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 37 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 38 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 39 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 40 Strategic Management Slides - Chapter 3 "the External Assessment" Slide 41
Upcoming SlideShare
Strategic Management Lecture 2
Next
Download to read offline and view in fullscreen.

31 Likes

Share

Download to read offline

Strategic Management Slides - Chapter 3 "the External Assessment"

Download to read offline

For all business assignments, projects, slides and internship please contact me on below email:
rabi_117@hotmail.com
rabi_117@hotmail.com
rabi_117@hotmail.com
rabi_117@hotmail.com
rabi_117@hotmail.com
rabi_117@hotmail.com
rabi_117@hotmail.com
rabi_117@hotmail.com
rabi_117@hotmail.com

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

Strategic Management Slides - Chapter 3 "the External Assessment"

  1. 1. Fred R. David Prentice Hall Ch.3-1 Chapter 3 The External Assessment Strategic Management: Concepts and Cases. 9th edition Fred R. David PowerPoint Slides by Anthony F. Chelte Western New England College
  2. 2. Fred R. David Prentice Hall Ch.3-2 Chapter Outline • The Nature of an External Audit • The Industrial Organization View • Economic Forces • Social, Cultural, Demographic, and Environmental Forces
  3. 3. Fred R. David Prentice Hall Ch.3-3 Chapter Outline • Political, Governmental, and Legal Forces • Technological Forces • Competitive Forces
  4. 4. Fred R. David Prentice Hall Ch.3-4 The External Assessment Prediction is very difficult, especially about the future. -- Neils Bohr
  5. 5. Fred R. David Prentice Hall Ch.3-5 External Strategic Management Audit Also called: – Environmental scanning – Industry analysis
  6. 6. Fred R. David Prentice Hall Ch.3-6 External Strategic Management Audit External Audit: – Identification and evaluation of trends and events beyond control of single firm • Increased foreign competition • Populations shifts • Aging society • Information technology • Computer revolution
  7. 7. The Industrial Organization (I/O) View • The Industrial Organization (I/O) approach to competitive advantage advocates that external (industry) factors are more important than internal factors in a firm achieving competitive advantage. Fred R. David Prentice Hall Ch.3-7
  8. 8. Fred R. David Prentice Hall Ch.3-8 Purpose: – Development of Finite List: • Opportunities • Threats to be avoided Nature of External Audit
  9. 9. Fred R. David Prentice Hall Ch.3-9 Five (5) broad categories: 1. Economic forces 2. Social, cultural, demographic, & environmental forces 3. Political, governmental, and legal forces 4. Technological factors 5. Competitive forces Key External Forces
  10. 10. Fred R. David Prentice Hall Ch.3-10 Relationships Between Key External Forces and an Organization Key External Forces Competitors Suppliers Distributors Creditors Customers Employees Communities Managers Stockholders Labor Unions Special Interest Groups Products Services Opportunities & Threats
  11. 11. Fred R. David Prentice Hall Ch.3-11 Performing an External Audit Gather competitive intelligence on factors: – Social – Cultural – Demographic – Environmental – Economic – Political, legal, governmental – technological
  12. 12. Fred R. David Prentice Hall Ch.3-12 Performing an External Audit Key factors: – Vary over time – Vary by industry
  13. 13. Fred R. David Prentice Hall Ch.3-13 Performing an External Audit Variables include: – Market share – Breadth of competing products – World economies – Foreign affiliates – Proprietary account advantages – Price competitiveness – Technological advancements – Interest rates – Pollution abatement
  14. 14. Fred R. David Prentice Hall Ch.3-14 Economic Forces Monitor Key Economic Variables:  Availability of credit  Level of disposable income  Interest rates  Inflation rates  Money market rates  Federal government budget deficits  Gross domestic product trend  Consumption patterns
  15. 15. Fred R. David Prentice Hall Ch.3-15 Monitor Key Economic Variables: • Unemployment trends • Worker productivity levels • Value of the dollar in world markets • Stock market trends • Foreign countries’ economic conditions • Import/export factors • Demand shifts for goods/services • Income differences by region/customer •
  16. 16. Fred R. David Prentice Hall Ch.3-16 Monitor Key Economic Variables: • Price fluctuations • Exportation of labor & capital • Monetary policies • Fiscal policies • Tax rates • ECC policies • OPEC policies • LDC policies
  17. 17. Fred R. David Prentice Hall Ch.3-17 Social, Cultural, Demographic & Environmental Forces Major impact on: – Products – Services – Markets – customers
  18. 18. Fred R. David Prentice Hall Ch.3-18 Social, Cultural, Demographic & Environmental Forces • World population > 6 billion • U.S. population < 300 million • Great potential for domestic production expansion to other markets • Domestic only is a risky strategy
  19. 19. Fred R. David Prentice Hall Ch.3-19 Social, Cultural, Demographic & Environmental Forces Trends for the 2000’s – – More educated consumers – Population aging – Minorities more influential – Local rather than federal solutions – Fixation with youth decreasing – Hispanics increase to 15% by 2021 – African Americans increase to 14% by 2021
  20. 20. Fred R. David Prentice Hall Ch.3-20 Social, Cultural, Demographic & Environmental Forces Key variables – • Childbearing rates • Number of special-interest groups • Number of marriages • Number of divorces • Number of births • Number of deaths • Immigration & emigration rates
  21. 21. Fred R. David Prentice Hall Ch.3-21 Monitor Key Variables • Life expectancy rates • Per capita income • Attitudes toward business • Average disposable income • Buying habits • Ethical concerns • Attitudes toward saving
  22. 22. Fred R. David Prentice Hall Ch.3-22 Monitor Key Variables • Racial equality • Average level of education • Government regulation • Attitudes toward customer service • Attitudes toward product quality • Energy conservation • Social responsibility
  23. 23. Fred R. David Prentice Hall Ch.3-23 Monitor Key Variables • Value placed on leisure time • Recycling • Waste management • Air & water pollution • Ozone depletion • Endangered species
  24. 24. Fred R. David Prentice Hall Ch.3-24 Political, Govt., & Legal Forces Government Regulation • Key opportunities & key threats • Antitrust legislation (Microsoft) • Tax rates • Lobbying efforts • Patent laws
  25. 25. Fred R. David Prentice Hall Ch.3-25 Political, Govt., & Legal Forces Increasing Global Interdependence • Impact of political variables – Formulation of Strategies – Implementation of Strategies
  26. 26. Fred R. David Prentice Hall Ch.3-26 Political, Govt., & Legal Forces Increasing Global Interdependence • Strategists in a global economy • Forecast political climates • Legalistic skills • Diverse world cultures
  27. 27. Fred R. David Prentice Hall Ch.3-27 Political, Govt., & Legal Forces Globalization of Industry • Worldwide trend toward similar consumption patterns • Global buyers & sellers • E-commerce • Instant transmission of money & information across continents
  28. 28. Fred R. David Prentice Hall Ch.3-28 Political, Govt., & Legal Forces Key Political, govt., & legal variables: • Government regulation/deregulation • Tax law changes • Special tariffs • Political Action Committees (PACs) • Voter participation rates • Number of patents • Changes in patent laws
  29. 29. Fred R. David Prentice Hall Ch.3-29 Technological Forces Internet changes the nature of opportunities and threats -- • Alters life cycle of products • Increases speed of distribution • Creates new products and services • Eases limitations of geographic markets • Alters economies of scale • Changes entry barriers
  30. 30. Fred R. David Prentice Hall Ch.3-30 Technological Forces Capitalizing on Information Technology (IT) • Chief Information Officer (CIO) • Chief Technology Officer (CTO)
  31. 31. Fred R. David Prentice Hall Ch.3-31 Technological Forces Technology-based issues – Underlie nearly every strategic decision
  32. 32. Strategy and Future Forecast • Linear regression is based on the assumption that the future will be just like the past. Fred R. David Prentice Hall Ch.3-32
  33. 33. Fred R. David Prentice Hall Ch.3-33 Competitive Forces Collection and evaluation of information on competitors is essential for successful strategy formulation
  34. 34. Fred R. David Prentice Hall Ch.3-34 Competitive Forces Competition in virtually all industries can be described as intense.
  35. 35. Fred R. David Prentice Hall Ch.3-35 Competitive Forces Identifying rival firms • Strengths • Weaknesses • Capabilities • Opportunities • Threats • Objectives • Strategies
  36. 36. Fred R. David Prentice Hall Ch.3-36 Competitive Forces Key Questions About Competitors: • Their strengths • Their weaknesses • Their objectives and strategies • Their responses to all external variables (e.g. social, political, demographic, etc.) • Their vulnerability to our alternative strategies
  37. 37. Fred R. David Prentice Hall Ch.3-37 Competitive Forces Key Questions About Competitors: • Our vulnerability to successful strategic counterattack • Our product and service positioning relative to competitors • Entry and exit of firms in the industry • Key factors for our current position in industry
  38. 38. Fred R. David Prentice Hall Ch.3-38 Competitive Forces Key Questions About Competitors: • Sales and profit rankings of competitors over time • Nature of supplier and distributor relationships • The threat of substitute products or services
  39. 39. Fred R. David Prentice Hall Ch.3-39 Competitive Forces Sources of Corporate Information: • Moody’s Manuals • Standard Corporation Descriptions • Value Line Investment Surveys • Dun’s Business Rankings • Standard & Poor’s Industry Surveys • Industry Week • Forbes, Fortune, Business Week
  40. 40. Fred R. David Prentice Hall Ch.3-40 Competitive Forces Competitive Intelligence Programs: • Systematic and ethical process for gathering and analyzing information about the competition’s activities and general business trends to further a business’ own goals.
  41. 41. Fred R. David Prentice Hall Ch.3-41 Competitive Analysis: Porter’s Five- Forces Model Potential development of substitute products Rivalry among competing firms Bargaining power of suppliers Potential entry of new competitors Bargaining power of consumers
  • JaydeepPershotam

    Jul. 31, 2021
  • Ultramanzzxx

    Jul. 22, 2021
  • RafayAhmad9

    Mar. 14, 2021
  • FahadZain

    Feb. 14, 2021
  • NajiaFatima2

    Feb. 12, 2021
  • CabdishakuurCumar1

    Sep. 26, 2020
  • ssuserafb4e6

    Jul. 9, 2020
  • HenryJrLikkab

    Mar. 4, 2020
  • ShigellaPaulineHebra1

    Jan. 26, 2020
  • WahajMohsin

    Dec. 20, 2019
  • sarakhan277

    Sep. 21, 2019
  • EveEva

    Jun. 23, 2019
  • ArxlanAxghar

    May. 16, 2019
  • KimberlyAnnAmar

    Feb. 13, 2019
  • ssuserd71ddc

    Jan. 19, 2019
  • JamesCantor1

    Nov. 27, 2018
  • JoyAtik1

    Nov. 18, 2018
  • JimmyKAmmons

    Nov. 6, 2018
  • AbdulQadir196

    May. 4, 2018
  • talhahassanaik

    Feb. 27, 2018

For all business assignments, projects, slides and internship please contact me on below email: rabi_117@hotmail.com rabi_117@hotmail.com rabi_117@hotmail.com rabi_117@hotmail.com rabi_117@hotmail.com rabi_117@hotmail.com rabi_117@hotmail.com rabi_117@hotmail.com rabi_117@hotmail.com

Views

Total views

11,834

On Slideshare

0

From embeds

0

Number of embeds

67

Actions

Downloads

771

Shares

0

Comments

0

Likes

31

×