PPT 3 Flashcards
What are the key micro-environmental factors?
Demand-related factors, customers, suppliers, employees, industry & competition, and the firm’s internal environment.
What are important demand-related factors to analyze?
Stability, trends, seasonality, random fluctuations in demand, demand potential, current demand level, and consumption patterns.
What customer-related factors should be considered?
Purchasing power, buying motives, attitudes, lifestyle, brand loyalty, brand switching behavior, and customer value analysis.
What factors should be considered about suppliers?
Continuity of supply, dependability in quality, delivery, pricing, avoiding dependence on a single supplier, and ability to get credit.
What is SWOT analysis?
Strengths and weaknesses from internal analysis, opportunities, and threats from environment scanning.
What are key parameters for internal analysis?
Market share, customer satisfaction, product and service quality, price effectiveness, distribution, promotion, and selling effectiveness.
What is benchmarking?
A technique for internal analysis that compares a firm’s business processes and metrics to industry best practices from competitors.
What is the opportunity matrix?
A 2x2 matrix that evaluates opportunities based on attractiveness and the firm’s probability of success, guiding strategic decisions.
What should a firm do in Cell #1 of the opportunity matrix?
Cell #1 has high attractiveness and a high probability of success—recommended strategy: pursue these opportunities aggressively.
What should a firm do in Cell #4 of the opportunity matrix?
Cell #4 has low attractiveness and a low probability of success—recommended strategy: ignore these opportunities.
What should a firm do in Cell #2 of the opportunity matrix?
Cell #2 has low attractiveness but a high probability of success—recommended strategy: wait and monitor closely for improvement.
