S3 - Internal and External environment Flashcards
What is the internal environment?
An organization’s resources, competencies, achievements, performance, and all other key factors representing obstacles or springboards.
Questions we can ask ourselves:
- What are the company’s strengths and weaknesses?
- What aspects of the company bring value to consumers?
- How does the company compare to others in the sector?
What are the components of the Internal Environment? Give some examples.
- Resources and core competences (human resources, financial resources, informational resources, purchasing resources)
- Current offer: What do you currently offer and is it working?
- Past performance: What have you offered in the past that worked? That didn’t work? Why?
- Relation with business partners
What is the value chain?
Analyzing the whole entity simultaneously to grasp the competitive advantage of a company.
Consisted of 5 primary activities and 4 support activities.
What are the 5 primary activities of the value chain?
- Inbound logistics
- Can you procure, receive and store materials affordably and quickly? - Operations
- Can you produce a high-quality product quickly and affordably? - Outbound logistics
- Can you efficiently get products to consumers? - Marketing and sales
- Segmentation, targeting, positioning - After-sale service
- Installation, repair, return
What are the 4 support activities of the value chain?
All activities that ensure that other activities are executed as efficiently as possible
- Infrastructure
- do you have management, financial, and legal systems in place to manage resources and make decisions? - Human Resources
- do you have systems in place to recruit, train and keep excellent employees? - Technological Development
- can you technologically innovate to gain an advantage on any of the primary activities? - Purchasing and procurement
- can you get materials affordably and quickly?
What is benchmarking and why is it important?
Benchmarking: analysis of the advantages and the weaknesses of a company.
Knowing the components of your internal environment and your value chain can help you know your company’s strengths and weaknesses.
It helps you know how to improve.
When companies benchmark, they compare themselves to their strongest competitors.
You can benchmark any part of your internal environment. Benchmarks of the value chain are called “strategic priority analysis”
What is the SWOT Technique?
Integrates information from the internal and external environment to develop a clear picture of strengths, weaknesses, opportunities, and threats to a company
What is the TOWS Model?
“Although this matrix contains the same information as that found in the SWOT matrix, the main advantage of the TOWS matrix is that it integrates all of this information in one analytical model that then serves as a strategic planning tool.”
“This model presents the strategic tools that the organization can use to seize opportunities that arise or protect itself from threats to its operations, according to its capacity to harness its strengths and overcome its weaknesses.”
What are some questions that market research can answer?
Profiles: what type of person is likely to use my food truck (ex.: health-conscious? money-conscious?)
Pricing: How much can I charge for a burrito?
UI: What aspects of my customer service could I improve?
What is the Micro-Environment?
Also known as the “competitive environment,” is the set of actors that are in direct contact with the organization; their activities may affect the company’s strategies
Can be defined by:
Sector (Competitors + Share) (E.g., Red Bull, 60% in energy, 12% in sports)
Supply (Classification based on output)
Supply and Demand (Classification based on output + consumption)
Is the microenvironment controllable? If so, how can you control it?
The micro-environment is semi-controllable.
Organizations can adopt one of two strategies:
1. Pro-active organizations track and react to their microenvironment.
2. Passive organizations react to market changes as they occur.
Pro-active organizations do better because they have time to prepare (ex.: to pivot, to face competition effectively)
What is the macro-environment (PESTEL)?
All factors of the external environment that the organization cannot control, but that may affect supply and demand in a market.
Political
Economic
Social
Technological
Ecological
Legal
-> description détaillée diapo 45-47 du PP S3 mais vous devez le savoir rendu là
What is the marketing information system?
A set of resources and procedures for collecting and analyzing data from the organization’s internal and external environment. The system transforms this data into useful information to inform decision making.
Before you collect data, think:
- Is it relevant (does this information helps us solve an important problem)?
- Is it reliable (if we did this test again, would the results be the same)?
- Is it valid (are we measuring what we think we’re measuring)?
Is it valid?
What are the two categories of Data?
- Primary data
Data that the firm gathers to answer a specific question. Common collection method include focus group, surveys, and experiments. - Secondary data
Pre-existing data that the firm can use to answer questions. They may be collected via a third party (StatsCa, etc.) pr by the firm (ex.: sales report).
Describe three types of data
- Internal Data Collection
Data the organization collects on itself regarding its suppliers, distributors, and customers
In e-commerce can be very helpful (e.g., lifetime value, attrition, response to advertising) - Marketing Intelligence
Data regarding the external environment
Laws, Trends, Technological developments
Often collected by government agencies or professional associations - Market Research
The collection of data by the firm (i.e., primary data) intended to help solve a particular marketing problem
Can be quantitative (e.g., experimentation, surveys) or qualitative(e.g., interviews, focus groups) in nature
