Professional Documents
Culture Documents
Ch.3-1
Also called:
Environmental scanning
Industry analysis
Fred R. David
Prentice Hall
Ch.3-2
Ch.3-3
Fred R. David
Prentice Hall
Ch.3-4
Ch.3-5
Key
External
Forces
Competitors
Suppliers
Distributors
Creditors
Customers
Employees
Communities
Managers
Stockholders
Labor Unions
Special Interest Groups
Products
Services
Fred R. David
Prentice Hall
Opportunities
&
Threats
Ch.3-6
Ch.3-7
Ch.3-8
Fred R. David
Prentice Hall
Ch.3-9
Market share
Breadth of competing products
World economies
Foreign affiliates
Proprietary account advantages
Price competitiveness
Technological advancements
Interest rates
Pollution abatement
Fred R. David
Prentice Hall
Ch.3-10
Overall company
Divisional or functional areas
Fred R. David
Prentice Hall
Ch.3-11
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
Fred R. David
Prentice Hall
Ch.3-12
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
Fred R. David
Prentice Hall
Ch.3-13
Price fluctuations
Exportation of labor & capital
Monetary policies
Fiscal policies
Tax rates
ECC policies
OPEC policies
LDC policies
Fred R. David
Prentice Hall
Ch.3-14
Fred R. David
Prentice Hall
Ch.3-15
Ch.3-16
Racial equality
Average level of education
Government regulation
Attitudes toward customer service
Attitudes toward product quality
Energy conservation
Social responsibility
Fred R. David
Prentice Hall
Ch.3-17
Fred R. David
Prentice Hall
Ch.3-18
Ch.3-19
Fred R. David
Prentice Hall
Ch.3-20
Fred R. David
Prentice Hall
Ch.3-21
Ch.3-22
Government regulation/deregulation
Tax law changes
Special tariffs
Political Action Committees (PACs)
Voter participation rates
Number of patents
Changes in patent laws
Fred R. David
Prentice Hall
Ch.3-23
Technological Forces
Revolutionary technological forces:
Internet
Semiconductors
XML technologies
UWB communications
Fred R. David
Prentice Hall
Ch.3-24
Technological Forces
Internet changes the nature of opportunities and
threats -
Ch.3-25
Competitive Forces
Fred R. David
Prentice Hall
Ch.3-26
Competitive Forces
Fred R. David
Prentice Hall
Ch.3-27
Competitive Forces
Identifying rival firms
Strengths
Weaknesses
Capabilities
Opportunities
Threats
Objectives
Strategies
Fred R. David
Prentice Hall
Ch.3-28
Bargaining power
of suppliers
Rivalry among
competing firms
Bargaining power
of consumers
Fred R. David
Prentice Hall
Ch.3-29
Demographic
Governmental
Social
Environmental
Technological
Cultural
Political
Competitive
Fred R. David
Prentice Hall
Ch.3-30
& threats
Ch.3-31
Five-step process:
Fred R. David
Prentice Hall
Ch.3-32
Ch.3-33
Factor
Opportunities
High-end in-home entertainment sales are growing nationally
0.15
0.60
0.16
0.64
0.07
0.21
0.12
0.36
0.06
0.18
0.13
0.13
0.10
0.10
0.08
0.16
0.07
0.07
0.06
0.12
Threats
Large chains could expand upward into their niche
Total
1.00
Fred R. David
Prentice Hall
2.57
Ch.3-34
Important
Fred R. David
Prentice Hall
Ch.3-35
Ch.3-36
(CPM)
Critical Success
Factor
Avon
LOreal
Procter
& Gamble
Advertising
0.20
Product Quality
0.10
Price Competition
0.10
Management
0.10
Financial Position
0.15
Customer Loyalty
0.10
Global Expansion
0.20
Market Share
0.05
Total
1.00
1
4
3
4
4
4
4
1
0.20
0.40
0.30
0.40
0.60
0.40
0.80
0.05
3.15
Fred R. David
Prentice Hall
4
4
3
3
3
4
2
4
0.80
0.60
0.40
0.30
0.30
0.40
0.30
0.30
0.45
0.45
0.40
0.20
0.40
0.40
0.20
0.15
3.25
2.80
Ch.3-37