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MGMT 316 Macro Environment, Industry Environment, and Intern
- 1. MGMT 316 Macro Environment, Industry Environment, and Internal Environment Macro-environment: PESTLE Political, economic, social, technological, legal…and events dynamism, complexity, resources scarcity, and uncertainty Industry Specific environment: Porter’s 5 forces model Power of customers, power of suppliers, barriers to entry, availability of substitutes, nature of rivalry/competition Regulation, pressure groups Internal environment: structure, processes, controls, policies, culture Organizational costs and cultural effects Environmental Change and Strategic Response (or not) A&P grocery chain 15,000 urban stores in 1929 ROI=20% 1920s-1950s Low-cost leader Lost $157 million in 1975 …what happened? 1920s USA Densely populated cities Multigenerational, rented city apartments Public transportation Men worked in offices (in town) or factories (at the edge of town)
- 2. Women managed the home Agricultural land between cities Newspapers…not electricity, phones, radio The city grocery store…900 Square feet, clerk service Walk or take the cable car between your apartment and the grocery store… Political and Economic Change: GI Bill of Rights, 1944 Taxpayer-funded college and Vo/Tek education for veterans (90 days active service) No-down, low interest home loans for vets “I can go to college and trade school!” “I can buy a home!”
- 3. Political/Economic/Physical change Interstate Highway Act, 1955 65 mph travel between cities now possible! Multilane, no stop signs, well engineered, safe travel for cars and trucks. World War II learning: Two front war, far from home… Scaled, speedier production Logistics and supply chain management in production and distribution Optimization of resources and assets Refrigerated transport of perishables “Everything is higher quality, more reliable, and costs less than before!” Convergence of Opportunity Young families with government-guaranteed borrowing capability Veterans increasing earning power with taxpayer-funded college education Freeways connecting cities, running through inexpensive agricultural counties Fast, reliable, affordable personal transportation Packaged foods from supplying military Logistics expertise, refrigerated trucking Women stay in the workforce
- 4. From this (1920s) To this (1960s) Size, scale, selection Self-service, large loads Change in home cold storage capacity Summary of changes Taxpayer funding for education and homes Low- homes Lower density, personal transportation, low priced
- 5. not daily Breakout Group Discussion: today’s challenges? Traditionals: Stater Bros, Ralph’s, Albertson’s How are changes today, and foreseeable tomorrow, likely to challenge the models of traditional supermarkets? Social changes? Technological changes? Economic changes? Political changes? Competitive changes? Events affecting? THINK: What newer competitors do traditional supermarkets now have, and what environmental changes created the opening for these competitors? A more modern example… The world’s largest video rental chain…now bankrupt…BLOCKBUSTER VIDEO! 1987 – Huizenga buys BB for $120 million Buys/builds…new store open every 24 hours! 1994 – Huizenga sells BB to Viacom for $8.4B 2000 - Blockbuster declines to buy Netflix for $50mm, BB valued at $4.6B. 2004: 9094 stores, 84K employees (59K in US) 2010 – valued at $24mm, BB files for bankruptcy. Pre-BlockBuster video stores… Sole proprietor 700-900 square feet stores 800-1000 video cassettes, “marginal” content Secondary locations
- 6. “Social outcast” customers 6,000 square feet 28 day head start 12,000 tapes power vs studios Prime real estate real estate expertise MIS system inventory optimized VCRs and DVDs key complements needed! 1990: 70% of US homes have a VCR 2007: 81% of US homes have a DVD player 2010: 65% of US homes have broadband access Change in medium creates opportunity
- 7. Industry Environment Elements Do I have a few key customers, who could really hurt me if they move to a competitor or substitute product? Do I have a few key suppliers, who control a key input I really need for my product valuable to customers? Is it easy for new firms to enter my industry? Are there good substitutes for my industry’s products, that customers can easily switch to? Is demand for my industry’s products growing, stable, or shrinking?
- 8. Can customers easily switch from my product to my competitor’s product? Do customers perceive a meaningful difference between my products and those offered by my competitor? Are there quality, well-priced complementary goods available, which add value to my product? The five forces and the Laptop Industry Power of suppliers – only three CPU manufacturers; all other inputs are commodities Power of customers – Best Buy and other powerful retailers Barriers to new entry – scale economies and access to distribution Threat of substitutes – chromebooks, tablets, smartphones, desktop computers Complements – computer programs, wifi access, broadband access Regulation, advocacy groups, boycotts, etc. Breakout Room Discussion: Five forces and the videogame console industry Microsoft, Sony, Nintendo What are the inputs, and what power do suppliers have? Who are the customers? Power? What are the barriers to new entry? What are the substitutes? What is the nature of competition? What are the key complementary goods, which add value to videogame consoles? Environmental changes Changes in technology can make some products obsolete very
- 9. quickly! Organizations who cannot anticipate or lead change are doomed. Technology changes often create ecosystem opportunities. Reviewing Environmental Analysis Supports the Mgt Function of PLANNING Scanning, interpretation, action, cognitive mapping Macro Environment: Political, Economic, Social, Tech Specific Environment Customers, competitors, suppliers, regulation, advocacy groups (PR and boycotts) Relationships, dependence, opportunism Internal Environment – trends/events affecting employees, managers, culture Organizational Culture Mission, purpose, vision Shared values, beliefs, attitudes Heroes, stories, ceremonies Consistency through time and integrity throughout the organization CHANGING culture Behavioral addition and substitution
- 10. Change language, symbols, ceremonies How Culture is Created Beliefs/passions/attitudes of the founders History, repeated stories, “heroes” Ceremonies, symbols, rituals, Culture is created, intentionally or unintentionally, over time! Culture is changed by: Changing symbols, rituals, stories, heroes, artifacts Behavioral addition and /or substitution Clearly stating the new desired beliefs/attitudes Reinforcement over time FIT among artifacts, values, assumptions Incentives to resist change, versus incentives to change Features of Culture Adaptability (reaction to changes) Employee involvement (norms) Clear mission/purpose (direction, goals) Consistency: taught, over time, reinforced Browne’s opinion: Compensation and Culture are an organization’s most effective and efficient control systems! Elements of Culture Selection, orientation Training, comm norms
- 11. Symbols, rituals, language, stories, vocabulary WHY IMPORTANT? Culture is one element of control!
- 12. Review: Organizational Culture Our shared beliefs about: Mission, vision, beliefs, values, right and wrong How we communicate, coordinate, cooperate How we treat people inside and outside the org Artifacts Symbols, stories, rituals, vocabulary OD consulting: efficiently and effectively creating and sustaining the right amount of change, in the right direction, at the right pace, using the right tools, and retaining the right people! Cortes’ solution to inertia and resistance…1519, war with Incas! Project 3: Internal Environmental Analysis Top of Form
- 13. Hide Assignment Information Turnitin® This assignment will be submitted to Turnitin®. Instructions BMGT 495 - Project 3: Internal Environmental Analysis (Week 6) NOTE: All submitted work is to be your original work (and only yours). You may not use any work from another student, the Internet, or an online clearinghouse. You are expected to understand the Academic Dishonesty and Plagiarism Policy and know that it is your responsibility to learn about Instructor and general academic expectations concerning proper citation sources as specified in the APA Publication Manual, 7th Ed. (Students are held accountable for in-text citations and an associated reference list only.) Project 3 is due Tuesday at 11:59 p.m. eastern time of Week 6. Purpose This project is the third of four projects. Students will perform an internal environmental analysis using the tools and concepts learned in the course to date. You will also draw from previous business courses to understand how organizations develop and manage strategies to establish, safeguard, and sustain their position in a competitive market. Students also can review an organization's objectives and goals and the key functional areas within the organization. Performing an internal environment analysis helps assess a firm's internal resources and capabilities. It plays a critical role in formulating strategy by identifying a firm's strengths to capitalize on to effectively overcome weaknesses. Outcomes Met With This Project · Utilize a set of useful analytical skills, tools, and techniques for analyzing a company strategically; · Integrate ideas, concepts, and theories from previously taken functional courses including, accounting, finance, market,
- 14. business, and human resource management; · Analyze and synthesize strengths, weaknesses, opportunities, and threats (SWOT) to generate, prioritize, and implement alternative strategies to revise a current plan or write a new plan and present a strategic plan. Instructions Step 1Specific Company for All Four Projects The company that your instructor has assigned to you for Project 1 is the company you will use for this project. The assigned company must be used for this project and in subsequent projects in the course. Students must complete the project using the assigned company. Deviating from the assigned company will result in a zero for the project. After reading the course material, you will complete the steps below. Step 2 Course Materials and Research · You must research information about the focal company and the internal environment for this project. You are accountable for using the course materials to support the ideas, reasoning, and conclusions made. Course material's use goes beyond defining terms and explains the 'why and how' of a situation. Using one or two in-text citations from the course materials and then relying on Internet source material will not earn many points on the assignment. A variety of source material is expected, and what is presented must be relevant and applicable to the topic being discussed. Avoid merely making statements but close the loop of the discussion by explaining how something happens or why something happens, which focuses on importance and impact. In closing the loop, you will demonstrate the ability to think clearly and rationally, showing an understanding of the logical connections between the ideas presented from the research, the course material, and the question(s) being asked. Note: Your report is based on the research results and not on any prepared documentation. What this means is that you will research and draw your own conclusions that are supported by
- 15. the research and the course material rather than the use of any source material that puts together any of the tools or techniques whether from the Internet, for-pay websites, or any pre-prepared document, video or source material. A zero will be earned for not doing your own analysis. Success: The analysis is based on research and not opinion. You are not making recommendations, and you will not attempt to position the focal company in a better or worse light than other companies within the industry merely because you are completing an analysis on this particular company. The analysis must be based on factual information. Any conclusions drawn have to be based on factual information rather than leaps of faith. As stated above, you are expected to use the course materials and research on the focal company's global industry and the focal company to ensure success. The opinion does not earn credit, nor does the use of external sources when course materials can be used. It is necessary to provide explanations (the why and how) rather than making statements. Avoid stringing one citation after another, as doing so does not show detailed explanations. Library Resources On the main navigation bar in the classroom, select Resources and then select Library. Select Databases by Title (A - Z). Select M from the alphabet list, and then select Mergent Online. Dun and Bradstreet's Hoovers Database, among others, is another excellent source for competitors and industry information. You are not to depend on one resource to complete the analysis. Moreover, it is impossible to complete Porter’s Five Forces, a competitive analysis, or an OT by using only the course material. You should not be using obscure articles, GlassDoor, or Chron, or similar articles. Research for Financial Analysis: Financial Research Research for Industry Analysis CSI Market The UMGC library is available for providing resources and services. Seek library support for excellence in your academic
- 16. pursuit. Library Support Extensive library resources and services are available online, 24 hours a day, seven days a week at https://www.umgc.edu/library/index.cfm to support you in your studies. In addition, the UMGC Library provides research assistance in creating search strategies, selecting relevant databases, and evaluating and citing resources in various formats via its "Ask a Librarian" service https://www.umgc.edu/library/libask/index.cfm. Scholarly Research in OneSearch is allowed. To search for only scholarly resources, you are expected to place a checkmark in the space for "Scholarly journals only" before clicking search. You should not be using obscure articles, GlassDoor, or Chron, or similar articles. Research for Financial Analysis: Financial Research Research for Industry Analysis CSI Market Step 3 How to Set Up the Report The document has to be written in Word or RTF. No other format is acceptable. No pdf files will be graded. Use 12-point font for a double-spaced report. The final product is expected to be 10 - 12 pages. The final project may not be more than 12 pages in length, including all tables and matrices, but excluding the title page and reference page. Do no use an Appendix. · Those items identified in the technical analysis should appear under the appropriate heading in the paper. It is important to format the tables/matrices to fit the report and present the analysis clearly and concisely. · Create a title page with the title, your name, date, the course number, the instructor's name. · Create Topic Headings that correspond to exact sections of the project requirements. Step 4Strategic Role of Corporate Strengths/Weaknesses in the Internal Strategy Analysis There are three levels of strategy: corporate-level strategy,
- 17. business-level strategy, and functional-level strategy. Corporate-level strategies are related to businesses or markets the focal company successfully can compete within. Corporate- level strategies affect the entire organization and are formulated by top management using middle and lower management input. Decision-making about corporate-level strategies is considered complex, affects the entire company, and relates to an organization’s resource capabilities. Corporate level strategies align with an organization’s mission statement and ideally are designed around goals and objectives. Perform an analysis on: · Corporate-level strategies. · Create a partial SWOT table, perform an SW analysis, and discuss the strategic inferences/implications. Discuss what strategies would allow the company to capitalize on its major strengths and what strategies would allow the company to improve upon its major weaknesses. · Create an IFE matrix and analysis. Make sure to explain how the matrix was developed and discuss the strategic inferences and implications. · Develop a Grand Strategy Matrix. Explain how the matrix was developed and discuss the strategic inferences/implications at a corporate level and business-unit level. Step 5Strategic Role of Internal Resources/Departments/Processes Perform an analysis on: · Business-level strategies · Evaluate the company's product line, target market. · Identify and explain business-level strategies. · Functional-level strategies · Assess the company's organizational structure, the organizational culture, marketing production, operations, finance and accounting, and R&D that can be accomplished by viewing the company's website, interviews, and surveys. · Explain how these strategies align with the company's vision and mission statements.
- 18. Step 6 Strategic Financial Analysisfor the Last Reported Fiscal Year · Use the company's income statement and balance sheet to calculate four (4) key financial ratios. One key ratio must come from each of the four key categories: leverage, liquidity, profitability, and efficiency. The four (4) specific ratios selection must come from the following categories. · · Leverage Ratios (Long term debt ratio, Total debt ratio, Debt- to-equity ratio, Times interest earned ratio, and Cash coverage ratio) · Liquidity Ratios (Net working capital to total assets ratio, current ratio, quick ratio, and cash ratio) · Efficiency Ratios (Asset turnover ratio, average collection period, inventory turnover ratio, and Days sales outstanding) · Profitability Ratios (Net Profit Margin, Return on Assets, and Return on Equity) · The selection of the ratios has to be relevant to the focal company, so it is important to choose wisely. · Quote industry financial average ratios correlate to the four (4) financial ratios selected for the focal company. Explain the importance of the four (4) averages to compare why averages are important to use. You may find the industry averages by going to the library. If you cannot find it on your own, reach out to the librarian as these resources are readily available. Note: If copied directly from the Internet, a zero will be assigned. When placing any table or figure in a table, it must be explained in detail. · Conclusion. The one-paragraph conclusion is intended to highlight the key 3-4 key findings, consequences, and recommendations resulting from your analysis. References Step 7 Review the Paper Read the paper to ensure all required elements are present. The following are specific requirements that you will follow. Use the checklist to mark off that you have followed each
- 19. specific requirement. Checklist Specific Project Requirements Proofread your paper. Read and use the grading rubric while completing the paper to ensure all requirements are met to lead to the highest possible grade. Third-person writing is required. Third-person means that there are no words such as “I, me, my, we, or us” (first-person writing), nor is there use of “you or your” (second-person writing). If uncertain how to write in the third person, view this link: http://www.quickanddirtytips.com/education/grammar/first -second-and-third-person. Contractions are not used in business writing, so do not use them. Paraphrase and do not use direct quotations. Paraphrase means you do not use more than four consecutive words from a source document. Removing quotation marks and citing is inappropriate. Instead, put a passage from a source document into your own words and attribute the passage to the source document. There should be no passages with quotation marks. Using more than four consecutive words from a source document would require direct quotation marks. Changing words from a passage does not exclude the passage from having quotation marks. If more than four consecutive words are used from source documents, this material will not be included in the grade. You are expected to use the research and weekly course materials to develop the analysis and support the reasoning. Therefore, there should be a robust use of the course material.
- 20. The material used from a source document must be cited and referenced. A reference within a reference list cannot exist without an associated in-text citation and vice versa. Changing words from a passage does not exclude the passage from having quotation marks. Use in-text citations and provide a reference list that contains the reference associated with each in-text citation. You may not use books in completing this problem set unless it is part of the course material. Also, do not use a dictionary, Wikipedia, or Investopedia, or similar sources. You may not use Fern Fort University or any other for-fee website. Provide the page or paragraph number in every in-text citation. Since the eBook does not have page numbers, you must include the chapter title, section heading, and paragraph number. For citations using a video, you must provide the minutes and second of the cited material. Step 9 Submit the paper in the Assignment Folder The assignment submitted to the Assignment Folder will be considered the student's final product and, therefore, ready for grading by the instructor. Therefore, it is incumbent upon the student to verify the assignment is the correct submission. No exceptions will be considered by the instructor. NOTE:All submitted work is to be your original work. You may not use any work from another student, the Internet, or an online clearinghouse. You are expected to understand the Academic Dishonesty and Plagiarism Policy and know that it is your responsibility to learn about Instructor and general academic expectations concerning proper citation sources as specified in the APA Publication Manual, 7th Ed. (Students are held accountable for in-text citations and an associated reference list only.) Bottom of Form
- 21. Questions that will help with the project: 1. What are the basic building blocks of organizational structure? 2. What types of structures exist, and what are advantages and disadvantages of each? 3. Differentiate between the four major types of organizational structure. 4. What is control and why is it important? 5. What are the different forms of control and when should they be used? 6. What are the key legal forms of business, and what implications does the choice of a business form have for organizational structure? 7. Explain the connection been organizational culture and strategy. 8. Explain why an organization may need to change its organizational structure. 9. What is the purpose of division of labor and explain why it is beneficial? 10. Distinguish between vertical and horizontal linkages and how what functions each fulfills in an organizational structure. 11. Understand what division of labor is and why it is beneficial. 12. Distinguish between vertical and horizontal linkages and know what functions each fulfills in an organizational structure.
- 22. REFERENCES: (please use some of these references) Porter's (1980) Generic Strategies as Determinants of Strategic Group Membership and Organizational Performance · Strategic-Formulation Analytical Framework- Must Read to Learn how to create a Grand Strategy Matrix. · BCG Matrix · The IE Matrix · How to Prepare the Internal External Matrix · QSPM Explained · Boston Consulting Group (BCG) Matrix · What is Corporate Strategy, Really? · Strategy, Marketing, and Technology are all Intertwined · How to Build Collaborative Advantage · Globalization in Uncertain Times: 10 Key Takeaways · Getting Organizational Redesign Right · It's Not The CEO. It's The Leadership Strategy That Matters · Strategy and Corporate Culture · Levels of Culture
- 23. [SHORTENED TITLE UP TO 50 CHARACTERS] 1 [SHORTENED TITLE UP TO 50 CHARACTERS] 2 [Title] [Student Name] [Course Number and name] Professor Name Due Date Introduction (The Introduction paragraph is the first paragraph of the paper and will be used to describe to the reader the intent of the paper explaining the main points covered in the paper. This intent should be understood prior to reading the remainder of the paper so the reader knows exactly what is being covered in the paper. Write the introduction last to ensure all of the main points are covered.)Strategic Role of Corporate Strengths/Weaknesses in the Internal Strategy Analysis Corporate-Level Strategies for Your Assigned Focal Company Perform an analysis on the focal company’s corporate-level strategies Partial SWOT (SW) Analysis Create a partial SWOT table and perform a SW analysis and discuss the strategic inferences/implications (Discuss what strategies would allow the company to capitalize on its major strengths and what strategies would allow the company to improve upon its major weaknesses.) Be sure to cite each SW inside the table as well as in the discussion. There should be a five for each SW to maximize points.
- 24. IFE Matrix Analysis Create an IFE matrix analysis. Make sure to explain how the matrix was developed and discuss the strategic inferences/implications Grand Strategy Matrix Develop a Grand Strategy Matrix. Make sure to explain how the matrix was developed and discuss the strategic inferences/implications at a corporate level and business-unit- levelStrategic Role of Internal Resources/Department Processes Business-Level Strategies Analysis Perform an analysis on the focal company’s business-level strategies.Product Line and Target Market Evaluate the company's product line and target market.Business-Level Strategies Identify and explain business-level strategies of your assigned focal company. Functional-Level Strategies Analysis Perform an analysis on your assigned focal company’s functional-level strategies Organizational Structure and Culture Assess the organizational structure, the organizational culture, marketing production, operations, finance and accounting, and R&D that can be accomplished by viewing the company's website, interviews, and surveys Company vision and mission alignment with strategies Explain how these strategies align with the company's vision and mission statements.Strategic Financial Analysis for the Last Reported Fiscal Year Use the company's income statement and balance sheet to calculate four (4) key financial ratios to the business that are relevant to the focal company. There must be a mix of four
- 25. different key categories inclusive of the leverage, liquidity, profitability, and efficiency ratios so that the ratios do not all come from the same category. The specific ratios selection must come from the following categories. 1. Leverage Ratios (Long term debt ratio, Total debt ratio, Debt-to-equity ratio, Times interest earned ratio, and Cash coverage ratio). 1. Liquidity Ratios (Net working capital to total assets ratio, current ratio, quick ratio, and cash ratio) 1. Efficiency Ratios (Asset turnover ratio, Average collection period, Inventory turnover ratio, and Days sales outstanding) 1. Profitability Ratios (Net profit margin, Return on assets, and Return on equity) The selection of the ratios has to be relevant to the focal company, so it is important to choose wisely. Quote industry financial average ratios correlate to the four (4) financial ratios selected for the focal company. Explain the importance of the four (4) averages to compare why averages are important to use. You may find the industry averages by going to the library. If you cannot find it on your own, reach out to the librarian as these resources are readily available. Show the calculations of each ratio and cite the source and page number. Use the company’s Annual Report or 10K from the company. Do not use Mergent Online or other online source. Note: If copied directly from the Internet, a zero will be assigned. When placing any table or figure in a table, it must be explained in detail. Conclusion The one-paragraph conclusion is intended to highlight the key 3-4 key findings, consequences, and recommendations resulting from your analysis. References Last Name, F. M. (Year). Article Title. Journal Title, Pages From - To.. See Library for proper APA reference format
- 26. Brightmark RNG Holdings LLC's subsidiaries currently own RNG projects in New York, Michigan, Florida, South Dakota and Arizona. Additional equity investments by each company in the joint venture will fund construction of infrastructure and commercial operation of 10 dairy biomethane projects, including new sites in Iowa and Wisconsin and additional sites in Michigan and South Dakota. Chevron will purchase RNG produced from these projects and market the volumes for use in vehicles operating on compressed natural gas. "This latest expansion with Brightmark advances our strategy of higher returns and lower carbon," says Andy Walz, president of Chevron's Americas Fuels and Lubricants. "Brightmark's expanded partnership with Chevron is another positive step forward in the decarbonisation of the farming industry," says Bob Powell, founder and chief executive officer of Brightmark. He adds, "Our carbon-negative projects are successfully reimagining waste and delivering significant environmental benefits while improving economics for our dairy farm partners. We look forward to executing on these new RNG projects with Chevron and partnering with dairy farmers to expand our RNG footprint across the country." Copyright 2021 Blockdale Media LLP, distributed by Contify.com Copyright: COPYRIGHT 2021 Athena Information
- 27. Solution s Pvt. Ltd. http://www.chemindigest.com/about.html "Chevron and Brightmark Expand Partnership on Dairy Biomethane Fuel Projects." Chemical Industry Digest, 30 Aug. 2021, p. NA. Gale Academic OneFile, link.gale.com/apps/doc/A673682083/AONE?u=chap_main&sid= bookmark- AONE&xid=c4d312f4. Accessed 20 Sept. 2021. https://go-gale- com.libproxy.chapman.edu/ps/retrieve.do?tabID=T003&resultLi stType=RESULT_LIST&searchResultsType=SingleTab&hitCou nt=7&searchType=AdvancedSearchForm¤tPosition=1&d ocId=GALE%7CA673682083&docType=Brief+article&sort=Rel evance&contentSegment=ZONE- MOD1&prodId=AONE&pageNum=1&contentSet=GALE%7CA6