CHAPTER 2 STRATBUS GENERAL ENVIRONMENT Flashcards
____________ is composed of dimensions in the broader society that influence an industry and the firms within it
General Environment
________is the set of factors that directly influences a firm and its competitive actions and responses
Industry Environment
How companies gather and interpret information about their competitors is called_____
Competitor Analysis
What are the 4 parts of External Environment Analysis?
scanning, monitoring, forecasting, and assessing
_____is a condition in the general environment that, if exploited effectively, helps a company reach strategic competitiveness
Opportunity
____ is a condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness.
Threat
This entails the study of all segments in the general environment.
Scanning
Detecting meaning through ongoing observations of environmental changes and trends
Monitoring
When _____analysts observe environmental changes to see if an important trend
is emerging from among those spotted through scanning.
monitoring
When________, analysts develop feasible projections of what might happen, and how quickly, as a result of the events and trends detected through scanning and monitoring
forecasting
Developing projections of anticipated outcomes based on monitored changes and trends
Forecasting
Determining the timing and importance of environmental changes and trends for firms’ strategies and their management
Assessing
Without this, the firm has data that may be interesting but of unknown competitive relevance.
Assessment/Assessing
The _________is concerned with a population’s size, age structure, geographic distribution, ethnic mix, and income distribution. Also, these are commonly analyzed on a global basis because of their potential effects across countries’ borders and because many firms compete in global markets
demographic segment
In 2018, the world’s population was_______
7.6 Billion
World’s population is projected to be_____by 2040 and roughly______ by 2055.
9.2 billion / 10 billion
What country was the world’s largest country by population with slightly more than 1.4 billion people in 2018?
China
By 2050, what country is expected to be the most populous nation in the world?
India
Give the 5 most populous countries that are expected by 2050 (In order)
- India
- China
- U.S
- Indonesia
- Pakistan
______are a significant problem for countries because of the need for workers and the burden of supporting retirement programs.
Aging Populations
Give the Elements of Demographic Segment (Mnemonics: PAGE I)
P opulation size A ge structure G eographic Distribution E thnic Mix I ncome Distribution
By 2050, how many percent of the world’s population will be aged 65 or older?
25%
This aging of the population threatens the ability of firms to hire and retain a workforce
that meets their needs. Thus, firms are challenged to increase the____ of their workers and/or to establish additional ________in other nations in order to access the potential working age population.
productivity/ operations
______may help companies to retain experienced and knowledgeable workers.
Delayed retirements
How a population is distributed within countries and regions is subject to change over
time.
Geographic Distribution
research has shown that firms with greater ______in their managerial team are likely to enjoy higher performance
Ethnic Diversity (This is under ethnic mix)
research has shown that firms with greater ______in their managerial team are likely to enjoy higher performance
Ethnic Diversity (This is under ethnic mix)
Under Geographic Segement, this is understanding how income is distributed within and across populations informs firms of different groups’ purchasing power and discretionary income.
Income Distribution
What country that many western multinationals are interested in as a consumption market as its middle class grows extensively
India
The________ refers to the nature and direction of the economy in which
a firm competes or may compete
economic environment
The _________is the arena in which organizations and interest groups
compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies.
political/legal segment
Firms develop a _____to specify how they will analyze and the political/legal to develop approaches they can take (such as lobbying efforts) to successfully deal with opportunities and threats that surface within this segment of the environment.
political strategy
This is formed in response to new national, regional, state, and/or local laws
that are legislated often influence a firm’s competitive actions and responses.
Regulations
What are the seven (7) environmental segments under general environment?
(Mnemonics: DEPT SSG) (can be read as DEPARTMENT of SSG)
D emographic Segment
E conomic Segment
P olitical/ Legal Segment
T echnological Segment
S ociocultural Segment
S ustainable Physical Environment Segment
G lobal Segment
The _______is concerned with a society’s attitudes and cultural values.
Because attitudes and values form the cornerstone of a society, they often drive demographic, economic, political/legal, and technological conditions and changes.
sociocultural segment
_____ is becoming increasingly important as the proportion of people older than 65 is growing larger in many nations throughout the world.
Healthcare
__________affect behavior in organizations and thus also influence organizational outcomes such as differences in managerial styles.
National cultural values
Understanding the importance of____ is critical for foreign firms doing business in China.
guanxi
What is the definition of guanxi?
personal relationships or good connections
The ____________includes the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes, and
materials.
technological segment
Early adopters of new technology often achieve _________and __________
higher market shares / earn higher returns
This offers firms a remarkable capability in terms of their efforts to scan, monitor, forecast, and assess conditions in their general environment.
Internet
How many are Internet users globally?
4 Billion
The use of _________ (of many types) with __________ has become the dominant form
of communication and commerce, and additional functionalities and software applications are generating multiple opportunities—and potential threats—for companies of all types
handheld computers/wireless network connectivity
The ______includes relevant new global markets and their critical cultural and institutional characteristics, existing markets that are changing, and important
international political events
global segment
When studying the global segment, firms should recognize that _____ of business markets may create opportunities to enter new markets, as well as threats that new
competitors from other economies may also enter their market
globalization
This is often is used by firms with moderate levels of international operations who increase their internationalization by focusing on global niche markets. This approach allows firms to build onto and use their core competencies while limiting their risks within the niche market
Globalfocusing
the________ as it exists throughout the world is another aspect of the global segment requiring analysis. Growing in size, this economy has implications for firms’ competitive actions and responses in that increasingly, firms competing in the formal economy will find that they are competing against informal economy companies as well
informal economy
The _____________ refers to potential and actual changes in the physical environment and business practices that are intended to positively respond to those changes in order to create a sustainable environment.
sustainable physical environment segment
_________is important to all societal citizens and because of its importance, customers
react more positively to firms taking actions
Environmental sustainability
What are the elements of Economic Segments? (Mnemonics (BIG TIP B))
B udget deficits/surpluses
I nflation rates
G ross domestic product
T rade deficits/ surpluses
I nterest Rates
P ersonal savings rates
B usiness savings rates
What are the elements of Political/ Legal segments? (Mnemonics: TALED)
T axation laws A ntitrust laws L abor training laws E ducational philosophies and policies D eregulation Philisophies
What are the Elements of Technological Segments? Mnemonics: (P FAN)
P roduct Innovations
F ocuses on private and government supported R & D expenditures
A pplications of knowledge
N ew communication Technologies
What are the elements of sociocultural segment? (Mnemonics: WWASS)
W omen in the workforce W orkforce Diversity A ttitudes about the quality of worklife S hifts in work and career preferences S hifts in preferences regarding product and service characteristics
What are the elements of Sustainable Physical Environment? Mnemonics: PERAM PR
P ractices used to develop energy souces E nergy cosumption R enewable energy efforts A vailability of water as a resource M inimizing a firms environmental footprint
P roducing environmentally friendly products
R eacting to natural or man-made disasters
What are the elements of Global Segments? Mnemonics: CIND
C ritical Global markets
I mportant Political events
N ewly industrialized countries
D ifferent cultural and institutional Attributes
This is important for dispersing new knowledge in organizations and increasing the speed in implementing innovations.
Knowledge sharing
