SlideShare a Scribd company logo
1 of 26
Strategic management  ,[object Object],[object Object]
 
Strategic position Assess the nature of the environment Audit environmental influences Identify key competitive forces Identify key opportunities and threats Identify competitive position Strategic position Steps in environmental analysis
Trend extrapolation Decentralisation or Delphy analysis Experience  and learning Scenario planning ENVIRONMENTAL CONDITIONS Static Dynamic ENVIRONMENTAL CONDITIONS Simple Complex Approaches to making sense of the environment Strategic analysis
 
 
Determinants of profits in an industry ,[object Object],[object Object],[object Object]
 
Deregulation Digitization / technology Globalization Five-plus forces of competition Other force/s
Five Forces Analysis (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Five Forces Analysis (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Five Forces Analysis (3) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Five Forces Analysis (4) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Pressure from substitute products ,[object Object],[object Object],[object Object],[object Object]
Five Forces Analysis (5) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Five Forces Analysis:  Key Questions and Implications ,[object Object],[object Object],[object Object],[object Object],[object Object]
The importance of the five force modell ,[object Object],[object Object],[object Object]
what to do …? 1. Positioning  :  accept competive structure as given and match yourself to it: .. build defenses against competitive forces .. identify positions where forces are weakest  2. Take the offensive:  Influencing the Balance .. identify key factors driving competition that you can control .. influence those costs that yield the greatest payoff 3. Exploiting Change .. understand which trends affect the sources of competition , and  forecast the magnitude of each trend and underlaying cause .. construct a picture of the likely profit potential of the industry 4. Set and evaluate diversification potential
Strategic Group Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Mapping Strategic Groups in the U.S. Restaurant Chain Industry  Limited menu Full menu Product-Line  Price Low High Mc’Donald’s, Taco Bell,  Burger King, Hardee’s K.F.C Pizza Hut,  Wendy’s Perkins,  Int. House of Panckake Red Lobster, Olive Garden Shoney’s,  Denny’s Country Kitchen
 
Styling Performance Marque strengths Engineering innovations Build quality Most important Least important Source: D. Faulkner and C. Bowman, The Essence of Competitive Strategy, Prentice Hall, 1995. Car X Competitor A's car Competitor B's car Figure 3.10  Perceived value by customers: the luxury car market Rating 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
 
 
Industry and Competitive Analysis -  Questions Tasks : What  is our business ? How do we  create value  ? What are our organizational and/or  technological  capabilities  ? Who  are we in business with ? How is our business/industry  changing  ? What drives this change ? What are our  strengths  and  weaknesses  ? What  opportunities  open up, and what  threats  exist ? Competitive & Industry Analysis ("Where do we stand?") Strategy formulation ("Where do we want  to go ?") Implementation and Control ("How do we get there?") 1 BBA_Str1v

More Related Content

What's hot

Strategic management 8
Strategic management 8Strategic management 8
Strategic management 8
Sampath
 
Competitor analysis
Competitor analysisCompetitor analysis
Competitor analysis
ankit00057
 
strategic management 1
strategic management 1strategic management 1
strategic management 1
Richard Gomez
 
Industry analysis, swot & portfolio analysis spare
Industry analysis, swot & portfolio analysis   spareIndustry analysis, swot & portfolio analysis   spare
Industry analysis, swot & portfolio analysis spare
bwire sedrick
 
External Environmental Analysis - Strategic Decision Making
External Environmental Analysis - Strategic Decision MakingExternal Environmental Analysis - Strategic Decision Making
External Environmental Analysis - Strategic Decision Making
Harish Lunani
 
Porters 5 Forces And Mapping
Porters 5 Forces And MappingPorters 5 Forces And Mapping
Porters 5 Forces And Mapping
smehro
 
Industry situation analysis
Industry situation analysisIndustry situation analysis
Industry situation analysis
JC
 

What's hot (20)

Bpch3
Bpch3Bpch3
Bpch3
 
Industry analysis
Industry analysisIndustry analysis
Industry analysis
 
Strategic management 8
Strategic management 8Strategic management 8
Strategic management 8
 
Strategic Management Lecture 2
Strategic Management Lecture 2 Strategic Management Lecture 2
Strategic Management Lecture 2
 
industrial analysis
industrial analysisindustrial analysis
industrial analysis
 
Industry and competitor analysis
Industry and competitor analysisIndustry and competitor analysis
Industry and competitor analysis
 
Dess chapter02
Dess chapter02Dess chapter02
Dess chapter02
 
An introduction to situation analysis in strategic marketing
An introduction to situation analysis in strategic marketingAn introduction to situation analysis in strategic marketing
An introduction to situation analysis in strategic marketing
 
Competitor analysis
Competitor analysisCompetitor analysis
Competitor analysis
 
Porter 5 forces model
Porter 5 forces modelPorter 5 forces model
Porter 5 forces model
 
MBA 8480 - Industry Analysis
MBA 8480 - Industry AnalysisMBA 8480 - Industry Analysis
MBA 8480 - Industry Analysis
 
strategic management 1
strategic management 1strategic management 1
strategic management 1
 
Situation analysis
Situation analysisSituation analysis
Situation analysis
 
2.ext analysis
2.ext analysis2.ext analysis
2.ext analysis
 
Industry analysis, swot & portfolio analysis spare
Industry analysis, swot & portfolio analysis   spareIndustry analysis, swot & portfolio analysis   spare
Industry analysis, swot & portfolio analysis spare
 
External Environmental Analysis - Strategic Decision Making
External Environmental Analysis - Strategic Decision MakingExternal Environmental Analysis - Strategic Decision Making
External Environmental Analysis - Strategic Decision Making
 
Porters 5 Forces And Mapping
Porters 5 Forces And MappingPorters 5 Forces And Mapping
Porters 5 Forces And Mapping
 
Industry and competitor analysis lec 5
Industry and competitor analysis lec 5Industry and competitor analysis lec 5
Industry and competitor analysis lec 5
 
Industry situation analysis
Industry situation analysisIndustry situation analysis
Industry situation analysis
 
Swot and porter
Swot and porterSwot and porter
Swot and porter
 

Viewers also liked

Viewers also liked (7)

Advance accounting e book part 1
Advance accounting  e book   part 1Advance accounting  e book   part 1
Advance accounting e book part 1
 
Chapter 12
Chapter 12Chapter 12
Chapter 12
 
Practical accounting 2 vol 2
Practical accounting 2  vol 2Practical accounting 2  vol 2
Practical accounting 2 vol 2
 
195 Accounting Principles Questions and Answers for Accounting Exams and Job ...
195 Accounting Principles Questions and Answers for Accounting Exams and Job ...195 Accounting Principles Questions and Answers for Accounting Exams and Job ...
195 Accounting Principles Questions and Answers for Accounting Exams and Job ...
 
Accounting Concepts and Principles with Examples
Accounting Concepts and Principles with ExamplesAccounting Concepts and Principles with Examples
Accounting Concepts and Principles with Examples
 
Accounting information system
Accounting information systemAccounting information system
Accounting information system
 
Basics of financial accounting
Basics of financial accountingBasics of financial accounting
Basics of financial accounting
 

Similar to Sm.2.environment

5th Lecture Industry & Competitive Analysis Mahmood Ahmed
5th  Lecture Industry & Competitive Analysis Mahmood Ahmed5th  Lecture Industry & Competitive Analysis Mahmood Ahmed
5th Lecture Industry & Competitive Analysis Mahmood Ahmed
City Cool Pvt Limited
 
External Environment
External EnvironmentExternal Environment
External Environment
sam ran
 
Topic2 Str Analysis
Topic2 Str AnalysisTopic2 Str Analysis
Topic2 Str Analysis
guest8fdbdd
 
Swot & porter
Swot & porterSwot & porter
Swot & porter
Rbk Asr
 
Mmi strategy 2
Mmi strategy 2Mmi strategy 2
Mmi strategy 2
gatecomro
 
Mmi strategy 2
Mmi strategy 2Mmi strategy 2
Mmi strategy 2
gatecomro
 
INDUSTRY ANALYSIS One of the major competences that str.docx
INDUSTRY ANALYSIS  One of the major competences that str.docxINDUSTRY ANALYSIS  One of the major competences that str.docx
INDUSTRY ANALYSIS One of the major competences that str.docx
carliotwaycave
 
1CHAPTER2THE EXTERNAL ENVIRONMENTOPPORTUNITIES, THREATS
1CHAPTER2THE EXTERNAL ENVIRONMENTOPPORTUNITIES, THREATS1CHAPTER2THE EXTERNAL ENVIRONMENTOPPORTUNITIES, THREATS
1CHAPTER2THE EXTERNAL ENVIRONMENTOPPORTUNITIES, THREATS
EttaBenton28
 

Similar to Sm.2.environment (20)

Ch03 Discussion Light
Ch03 Discussion LightCh03 Discussion Light
Ch03 Discussion Light
 
5th Lecture Industry & Competitive Analysis Mahmood Ahmed
5th  Lecture Industry & Competitive Analysis Mahmood Ahmed5th  Lecture Industry & Competitive Analysis Mahmood Ahmed
5th Lecture Industry & Competitive Analysis Mahmood Ahmed
 
External Environment
External EnvironmentExternal Environment
External Environment
 
Topic2 Str Analysis
Topic2 Str AnalysisTopic2 Str Analysis
Topic2 Str Analysis
 
Swot & porter
Swot & porterSwot & porter
Swot & porter
 
Business level strategy
Business level strategyBusiness level strategy
Business level strategy
 
Ch02a
Ch02aCh02a
Ch02a
 
chapter 4 Environmental Analysis and Appraisal.ppt
chapter 4 Environmental Analysis and Appraisal.pptchapter 4 Environmental Analysis and Appraisal.ppt
chapter 4 Environmental Analysis and Appraisal.ppt
 
Sm module (2)
Sm module (2)Sm module (2)
Sm module (2)
 
Mmi strategy 2
Mmi strategy 2Mmi strategy 2
Mmi strategy 2
 
Mmi strategy 2
Mmi strategy 2Mmi strategy 2
Mmi strategy 2
 
Business Environment.ppt
Business Environment.pptBusiness Environment.ppt
Business Environment.ppt
 
Practice of International Trade EIMSO2 Lecture V3
Practice of International Trade EIMSO2 Lecture V3Practice of International Trade EIMSO2 Lecture V3
Practice of International Trade EIMSO2 Lecture V3
 
Environmental scanning & Monitoring Techniques
Environmental scanning & Monitoring TechniquesEnvironmental scanning & Monitoring Techniques
Environmental scanning & Monitoring Techniques
 
INDUSTRY ANALYSIS One of the major competences that str.docx
INDUSTRY ANALYSIS  One of the major competences that str.docxINDUSTRY ANALYSIS  One of the major competences that str.docx
INDUSTRY ANALYSIS One of the major competences that str.docx
 
Dealing with the Competition
Dealing with the CompetitionDealing with the Competition
Dealing with the Competition
 
Porters five model
Porters five modelPorters five model
Porters five model
 
1CHAPTER2THE EXTERNAL ENVIRONMENTOPPORTUNITIES, THREATS
1CHAPTER2THE EXTERNAL ENVIRONMENTOPPORTUNITIES, THREATS1CHAPTER2THE EXTERNAL ENVIRONMENTOPPORTUNITIES, THREATS
1CHAPTER2THE EXTERNAL ENVIRONMENTOPPORTUNITIES, THREATS
 
Robbins ppt08
Robbins ppt08Robbins ppt08
Robbins ppt08
 
Robbins ppt08
Robbins ppt08Robbins ppt08
Robbins ppt08
 

Recently uploaded

Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
LR1709MUSIC
 

Recently uploaded (20)

Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptxGoal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
 
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business GrowthFalcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business Growth
 
GURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON ESCORTS SERVICE PROVIDE
GURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON  ESCORTS SERVICE PROVIDEGURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON  ESCORTS SERVICE PROVIDE
GURGAON CALL GIRL ❤ 8272964427❤ CALL GIRLS IN GURGAON ESCORTS SERVICE PROVIDE
 
Arti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfArti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdf
 
Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024
 
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
 
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
 
Falcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business Potential
 
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
 
Managerial Accounting 5th Edition by Stacey Whitecotton test bank.docx
Managerial Accounting 5th Edition by Stacey Whitecotton test bank.docxManagerial Accounting 5th Edition by Stacey Whitecotton test bank.docx
Managerial Accounting 5th Edition by Stacey Whitecotton test bank.docx
 
Putting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptxPutting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptx
 
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
 
JIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDE
JIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDEJIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDE
JIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDE
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
 
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAIGetting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
 
Ital Liptz - all about Itai Liptz. news.
Ital Liptz - all about Itai Liptz. news.Ital Liptz - all about Itai Liptz. news.
Ital Liptz - all about Itai Liptz. news.
 
The Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and UncertaintyThe Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and Uncertainty
 
Top Quality adbb 5cl-a-d-b Best precursor raw material
Top Quality adbb 5cl-a-d-b Best precursor raw materialTop Quality adbb 5cl-a-d-b Best precursor raw material
Top Quality adbb 5cl-a-d-b Best precursor raw material
 
Progress Report - Oracle's OCI Analyst Summit 2024
Progress Report - Oracle's OCI Analyst Summit 2024Progress Report - Oracle's OCI Analyst Summit 2024
Progress Report - Oracle's OCI Analyst Summit 2024
 
How does a bike-share company navigate speedy success? - Cyclistic
How does a bike-share company navigate speedy success? - CyclisticHow does a bike-share company navigate speedy success? - Cyclistic
How does a bike-share company navigate speedy success? - Cyclistic
 

Sm.2.environment

  • 1.
  • 2.  
  • 3. Strategic position Assess the nature of the environment Audit environmental influences Identify key competitive forces Identify key opportunities and threats Identify competitive position Strategic position Steps in environmental analysis
  • 4. Trend extrapolation Decentralisation or Delphy analysis Experience and learning Scenario planning ENVIRONMENTAL CONDITIONS Static Dynamic ENVIRONMENTAL CONDITIONS Simple Complex Approaches to making sense of the environment Strategic analysis
  • 5.  
  • 6.  
  • 7.
  • 8.  
  • 9. Deregulation Digitization / technology Globalization Five-plus forces of competition Other force/s
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18. what to do …? 1. Positioning : accept competive structure as given and match yourself to it: .. build defenses against competitive forces .. identify positions where forces are weakest 2. Take the offensive: Influencing the Balance .. identify key factors driving competition that you can control .. influence those costs that yield the greatest payoff 3. Exploiting Change .. understand which trends affect the sources of competition , and forecast the magnitude of each trend and underlaying cause .. construct a picture of the likely profit potential of the industry 4. Set and evaluate diversification potential
  • 19.
  • 20.  
  • 21. Mapping Strategic Groups in the U.S. Restaurant Chain Industry Limited menu Full menu Product-Line Price Low High Mc’Donald’s, Taco Bell, Burger King, Hardee’s K.F.C Pizza Hut, Wendy’s Perkins, Int. House of Panckake Red Lobster, Olive Garden Shoney’s, Denny’s Country Kitchen
  • 22.  
  • 23. Styling Performance Marque strengths Engineering innovations Build quality Most important Least important Source: D. Faulkner and C. Bowman, The Essence of Competitive Strategy, Prentice Hall, 1995. Car X Competitor A's car Competitor B's car Figure 3.10 Perceived value by customers: the luxury car market Rating 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
  • 24.  
  • 25.  
  • 26. Industry and Competitive Analysis - Questions Tasks : What is our business ? How do we create value ? What are our organizational and/or technological capabilities ? Who are we in business with ? How is our business/industry changing ? What drives this change ? What are our strengths and weaknesses ? What opportunities open up, and what threats exist ? Competitive & Industry Analysis ("Where do we stand?") Strategy formulation ("Where do we want to go ?") Implementation and Control ("How do we get there?") 1 BBA_Str1v