Analysis of the environment Flashcards
Strategic position
- assess nature of environment
- audit environmental influences
- identify key competitive forces
- identify competitive position
- identify opportunities and threats
understanding nature of environment
see notes
PEST analysis
what environmental factors are affecting the organisation - which of these are most important now and in the next few years
Political factors
- monopolies legislation
- environmental protection laws
- taxation
- foreign trade regulations
- government stability
Sociocultural factors
- population deomgraphics
- income distribution
- social mobility
- lifestyle changes
- levels of education
Economic factors
- business cycles
- GNP trends
- interest rates
- inflation
- unemployment
- disposable income
Technology factors
- gov spending
- gov focus
- new discoveries
- speed of technology transfer
Porter firm strategy
structure and rivalry
factor conditions
demand conditions
related and suporting industries
identify companys competitive position
- strategic groups: Classification of the industry
consider the following:
- event of product diversity
- geographic coverage
- distribution channels
- branding
- marketing effrot
- technology
- r and d
- cost position
- structure
- size
Resource audit
see notes for digram
Porter value chain model
value chain analysis allows firms system and interactions to be examined systematically such that competitive advantages of the firm can be identified
information used to:
- help do things better
- help to do in a more cost effective way
- strengthen areas of weakness
primary activity
- activities related to manufacture which add value
- activities relating to sales of product or service
support activities
- infrastructure aspects: how system is maintained and relates to management systems
- procurement and technology management
identification of stakeholders
see notes
level of interest/ power
ethics
- short term/ long term shareholder interests
- shareholder obligations
- relationship to society
