EXTERNAL ENVIRONMENT AND SITUATION ANALYSIS Flashcards by Unknown Unknown

Refers to the outside influences and factors that affect business operations.

EXTERNAL ENVIRONMENT

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The business environment factors include

Competitive, Political, Technological, and Economic factors

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The factors affect a business owner’s decision and have particular characteristics.

EXTERNAL ENVIRONMENT

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is a process through which you gain a detailed understanding of the precise wants and needs of your current and/or prospective customers

CUSTOMER NEED ANALYSIS

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How to Conduct a Customer Needs Assessment?

Define your target market
Identify your customer segments
Conduct primary research
Conduct secondary research
Analyze your findings
Develop Recommendations
Implement your recommendation

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INDUSTRY ANALYSIS
PORTER’S 5 FORCES MODEL

Threat of new entry
Threat of substitutes
Bargaining power of buyer
Bargaining power of suppliers
Competitive rivalry

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SIMPLIFIED LAWS OF STRATEGIC MARKETING

Law of natural monopoly
Double jeopardy
Retention double jeopardy
Duplication of purchase
Regression to the mean in sales
Heterogeneity of the target
I love my mum and you love your mun
Prototypicality

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LAW OF NATURAL MONOPOLY

Big brands attract the majority of Light Buyers due to their brand recognition and trust.

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DOUBLE JEOPARDY

refers to the phenomenon where smaller brands suffer twice: having fewer buyers and lack of customer loyalty

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RETENTION DOUBLE JEOPARDY

An idea that smaller enterprises often face greater challenges in customer retention compared to larger ones.

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DUPLICATION OF PURCHASE

This is when a customer buys from multiple brands in the same category.

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REGRESSION TO THE MEAN IN SALES

This concept means that if a customer spends a lot once, their future spending will likely be lower and more average.

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HETEROGENEITY OF THE TARGET

This concept highlights that customers are diverse and their behaviors, tastes, and preferences vary widely.

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I LOVE MY MUM AND YOU LOVE YOUR MUM

This law suggests that consumer preference for a brand develops after using it

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PROTOTYPICALITY

A brand’s ability to be the “perfect example” of its market category.

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Defines an organization ‘ s core purpose and key objectives, serving as a guide for its actions and aligning all stakeholders toward a common direction.

MISSION

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A mission is a vital part of an organization that demonstrates its basic identity and guiding values.

MISSION

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It is a clear and concise statement that explains why an organization does what it does.

MISSION

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This statement often encompasses the purpose of the company and why it exists, as well as its key objectives or the goals it seeks to achieve.

MISSION

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A company ‘ s vision is like a map that shows them the way to success.

VISION

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It defines desired outcome and its ideal future, ensuring every action aligns with the company ‘ s long-term aspirations

VISION

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PUP VISION

A LEADING COMPREHENSIVE POLYTECHNIC UNIVERSITY IN ASIA

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PUP MISSION

ADVANCE AN INCLUSIVE, EQUITABLE, AND GLOBALLY RELEVANT POLYTECHNIC EDUCATION TOWARDS NATIONAL DEVELOPMENT

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PUP 3 PILLARS

TEACHING AND LEARNING
RESEARCH AND EXTENSION
INTERNAL GOVERNANCE

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PUP CORE VALUES

I - INTEGRITY AND ACCOUNTABILITY N - NATIONALISM S - SENSE OF SERVICE P - PASSION FOR LEARNING AND INNOVATION I - INCLUSIVITY R - RESPECT FOR HUMAN RIGHTS AND THE ENVIRONMENT E - EXCELLENCE D - DEMOCRACY

is a company ' s commitment to operating in an ethical and sustainable manner, taking responsibility for its impact on society and the environment

CORPORATE SOCIAL RESPONSIBILITY

is no longer just a "bonus" for businesses; it’s become a key part of evaluating your company’s overall situation.

CORPORATE SOCIAL RESPONSIBILITY

KEY AREAS:

Environment Responsibility - This is about taking care of the planet Social Responsibility - This is about treating people fairly and ethically Governance Responsibility - This is about being transparent, accountable, and ethical in your business practices.

INTEGRATING CSR INTO SITUATION ASSESSMENT: INTERNAL ANALYSIS

VALUES AND MISSION OPERATIONS AND PROCESSES EMPLYOYEE ENGAGEMENT

This means checking if the things your company does to help the environment or society (your CSR initiatives) actually match what your company says it believes in (its values) and what it wants to achieve (its mission).

Values and Mission

This is looking at how your company works day-to-day and figuring out if those operations have any negative effects on the environment or society.

Operations and Processes

This part is about understanding if your employees are happy and involved in your company's CSR efforts.

Employee Engagement

Benefits of Integrating CSR into Situation Assessment

Enhanced Reputation and Brand Value Improved Stakeholder Relations Increased Employee Morale and Retention Reduced Risks and Costs Competitive Advantage Long-Term Sustainability

is a framework used to evaluate a company ' s competitive position and to develop strategic planning.

SWOT ANALYSIS

refers to the way a company arranges its workforce to achieve its goals.

Organizational Structure

It dictates how tasks are divided, coordinated, and supervised

Organizational Structure

Key Types of Organizational Structure

Hierarchical Flat Matrix Divisional

Traditional model with clear levels of authority.

Hierarchical

Fewer levels of management, promoting open communication.

Flat

Combines functional and project-based structures, facilitating flexibility.

Matrix

Organized by product lines or geographic areas.

Divisional

encompasses the values, beliefs, and behaviors that shape how employees interact and work together.

Organizational Culture

Key Components of Organanizational Culture

Values Norms Symbols Rituals

Core principles that guide employee behavior and decision-making.

Values

Unwritten rules that govern daily operations and expectations within the workplace.

Norms

Logos, branding, and office design that reflect the company’s culture.

Symbols

Regular practices that reinforce organizational values and foster team cohesion.

Rituals

ASSESSING PAST PERFORMANCE AND CURRENT STRATEGIES

Financial Performance Market and customer insights Operational Efficiency Marketing and sales strategies Current strategic move

serves as the foundation for assessing the overall success of a business.

Financial Performance

This section focuses on how well the company is positioned in the market and how it manages its customer relationships

Market and customer insights

Operational efficiency is the backbone of profitability.

Operational efficiency

play a crucial role in attracting new customers and retaining existing ones.

Marketing and sales strategy

This section evaluates ongoing initiatives, including expansion, partnerships, and product diversification.

Current strategic moves

is the difference between how well an organization is doing now and how well it wants to do in the future. It shows where improvements are needed to reach its goals. You can think of it as the space between where you are and where you want to be.

Strategic gap

TWO TYPES OF STRATEGIC GAPS

Performance gap Opportunity gap

This gap happens when an organization isn’t performing as well as it wants to.

Performance gap

This gap occurs when an organization misses out on market opportunities, resulting in a difference between its current performance and what it could achieve.

Opportunity gap

happen when there’s a difference between what is needed to reach a goal and what is actually available

PLANNING GAPS

Types of Planning Gaps

Resources Time Capacity Process Communication

This happens when a company doesn't have enough resources, like money, staff, or tools, to get the job done

Resource gap

This occurs when there isn't enough time to finish tasks, or the deadlines are too tight.

Time gap

This happens when a company thinks it can handle more than it actually can or isn't ready for unexpected problems.

Capacity gap

This occurs when procedures are inefficient or unclear.

Process gap

This happens when communication among team members or departments is poor, leading to confusion and delays.

Communication gap

BLANK, whether corporate or marketing, are the expected outcomes of the strategy. These are the company’s long-term goals that define its future direction, while BLANK are specific milestones set to achieve these objectives.

Objectives, Targets

There are many different types of objectives with which an organization should be concerned according Drucker 1954

MARKET STANDING INNOVATION PRODUCTIVITY PHYSICAL AND FINANCIAL RESOURCES PROFITABILITY MANAGER PERFORMANCE AND DEVELOPMENT EMPLOYEE PERFORMANCE AND ATTITUDE PUBLIC RESPONSIBILITY

This refers to the company’s position in the market compared to competitors. F

Market standing

Companies should set objectives to continuously innovate,

Innovation

This focuses on improving efficiency and output.

Productivity

Objectives in this area deal with managing and optimizing resources.

Physical and financial resources

Profit-related objectives are crucial for long-term sustainability.

Profitability

Organizations should set objectives for training and improving their managers.

Manager performance and development

Ensuring employees perform well and have a positive attitude is key.

Employee performance and attitude

Companies should have objectives related to their responsibility toward society.

Public responsibility

TYPES OF OBJECTIVES

STRATEGIC AND OPERATIONAL OBJECTIVES

are long-term goals that set the overall direction for the company.

Strategic objectives

are short term, specific actions that support these larger goals

Operational objectives

When setting targets, we use the SMART framework to make sure they are effective.

SPECIFIC MEASURABLE ACHIEVABLE RELEVANT TIME BOUND

The target must be clear and focused.

SPECIFIC

It’s important to measure progress, so we need targets that include quantifiable metrics.

MEASURABLE

Targets should be realistic based on the company’s resources.

ACHIEVABLE

The target must align with the company’s overall strategy.

RELEVANT

Every target should have a deadline.

TIME BOUND

ALIGNING PRELIMINARY OBJECTIVES WITH THE COMPANY’S LONG TERM STRATEGY

Stepping stones to success Ongoing refinement Adaptability

is an in-depth evaluation of the internal and external factors that influence a company’s ability to reach its marketing objectives.

A situation assessment

It helps companies gain a clear understanding of their strengths, weaknesses, market opportunities, and threats.

A situation assessment

STEPS FOR CONDUCTING SITUATION ASSESSMENT

Define the Goal of the Assessment Conduct an Internal Analysis (Strengths and Weaknesses) Conduct an External Analysis Competitive Analysis Customer Analysis Identify Opportunities and Threats Analyze the Findings and Make Strategic Decisions

A useful situational analysis should:

Be easy to understand by someone outside of the company Focus on the key factors—both internally and externally—that impact your business Articulate business goals for the future Initiate even further analysis

ADVANTAGES OF SITUATION ANALYSIS

1. Informed Decision-Making 2. Identifies Opportunities and Threats 3. Enhances Strategic Planning 4. Improves Resource Allocation

DISADVANTAGES

1.Time Consuming 2.Resource Intensive 3.Overemphasis on Analysis 4.Data Overload

EXTERNAL ENVIRONMENT AND SITUATION ANALYSIS Flashcards

Group 1 and Group 2