2. Analysing the Organisational Ecosystem Flashcards
How often should environmental scanning take place?
Continuously
What are the 4 elements of SWOT analysis?
- Strengths (int, rel to comp)
- Weaknesses (int, rel to comp)
- Opportunities (ext)
- Threats (ext)
What are the 3 stakeholders groups?
- Internal (Primary)
- Connected (financial) (Primary)
- External (secondary)
What are the 3 steps of stakeholder analysis?
- Identify key stakeholders
- Assess their interest
- Assess how they may affect the organisation
What are the 2 elements of Mendelow’s stakeholder matrix?
Power and Interest
What are the 4 categories of Mendelow’s stakeholder matrix?
- Key players (^P^I) - make acceptable
- Keep satisfied (^PvI)
- Keep informed (vP^I)
- Minimal effort (vPvI)
What are 5 possible sources of stakeholder power?
- Position held
- Resources controlled
- System power
- Expert power
- Personal charisma
What are the 4 approaches to resolving conflicting stakeholder objectives?
- Satisficing (compromise)
- Sequential attention
- Side payments
- Power
What are the 3 purposes of Porter’s five forces competitor analysis?
- Forecast competitors’ future strategies
- Predict reactions
- Determine how to influence
What are the 4 types of competitor?
- Brand competitor (similar product, similar customer)
- Industry competitor (similar product, different market)
- Form competitor (different product for the same need)
- Generic competitor (compete for same income)
What are the 4 competitor response profiles?
- Laid back
- Selective
- Tiger (aggressive)
- Stochastic (not predictable)
What do Porter’s 5 forces determine?
The competitive intensity and therefore attractiveness of a market
What are Porter’s 5 forces?
- Threat of substitutes
- Threat of new entrants
- Bargaining power of suppliers
- Bargaining power of customers
- Competitive rivalry
What influences threat of substitutes?
The elasticity of demand
What is the ‘sixth’ force associated with Porter’s 5 forces?
Government
What are the 5 main limitations of the 5 Forces model?
- Less useful in changing environments
- Some industries are collaborative
- Ignores impact of government
- Not relevant to NFP
- Implies we are at war with customers
What are the 4 elements of Porter’s diamond, looking at the differing success of nation’s industries?
- Factor conditions
- Related and supporting industries
- Demand conditions
- Strategy, structure and rivalry
What are factor conditions in relation to Porter’s diamond?
Resources available in terms of basic (land, raw materials, labour, climate) and advanced (skills, education, infrastructure, knowledge, tech)
What are related and supporting industries in relation to Porter’s diamond?
Clusters of industries that can exchange technological information and supply with each other quickly, with easy communication and similar/the same culture
What are demand conditions in relation to Porter’s diamond?
How much demand there is in a home country, helping to build economies of scale and force innovation
What are strategy, structure and rivalry in relation to Porter’s diamond?
Local capital market, ownership and competition law conditions. Domestic competition drives innovation and efficiency and investment in R&D
When is Porter’s diamond not as useful?
When deciding whether to enter a market (better use PESTLE or 5 forces)
What are the 6 key roles that government can play to stimulate Porter’s diamond?
- Enforcing standards of performance
- Create supportive capital markets
- Build infrastructure
- Provide grants/tax incentives
- Stimulate demand - act as customer
- Enforcing strict competition law
What are the 7 ways that government can effect industry structure?
- Capacity expansion (tax changes)
- Demand (customer)
- Divestment (block sale)
- Control (licences)
- Entry barriers
- Competition policy
- Product regulation
What are the 6 factors in PESTLE analysis?
Political
Economic
Social
Technological
Environmental
Legal
What does PESTLE analysis encourage?
Proactive thinking about the situation, strategy, position or direction of a company
What are the 3 actors within ‘civil society’?
- Non governmental organisations
- Mass public
- Knowledge based communities e.g. CIMA
What type of business is PESTLE analysis most useful for?
Large, more complex businesses
What are the 8 actors of the non market environment?
- Supranational organisations e.g. EU
- Organisations of states
- Individual states
- Business organisations e.g. Chambers of Commerce
- Corporations
- Non governmental organisations
- Mass public
- Knowledge based communities e.g. CIMA
What is non market strategy?
Forming successful relationships with the non market actors to gain sustained competitive advantages
What are the 4 main drivers of change in the business ecosystem?
- Globalisation
- Geopolitics
- Demography
- Customer empowerment
What are the 4 main factors that drive globalisation?
- Improved communications
- Political re-alignment
- Growth in global industries
- Cost differentials
What are the 6 main impacts of globalisation?
- Relocation of certain industries to favourable locations
- Increased competition (so better value for money for consumers)
- Increased cross border M&A
- More multinational corps
- Widening of economic divisions
- Emergence of new growth markets
What is geopolitics?
The combination of geographical and political factors that influence a region, e.g. supply factors and human geographies
What is demography?
The statistical study of the human population
What element of PESTLE would demographic considerations sit under?
Social
What is digitech?
The science of creating digital processes or items and the practise of putting them to practical use
What are the 3 aspects of how digitech change aspects of an organisations relationship with customers?
- Awareness (internet targeted advertising)
- Transaction (e-commerce, online only)
- After-care (IoT, better servicing and maintenance)
What 4 other groups does digitech improve relationships with?
- Procurement (virtual supply chains)
- Governments (e-filing tax returns)
- Employees (better access to info)
- Pressure groups (can spread messages quickly)
What is automation?
The use of software to carry out low level tasks
What are the 4 main benefits of automation?
- Cost saving
- Better accuracy
- Competitive advantage
- More varied job tasks replace repetitive
What are the 2 issues/considerations for automation?
- Loss of personal customer experience
- Poor staff morale due to redundancies
