Strategic Management Flashcards
1
Q
What are the three types of external environment?
A
- General environment - focus on predicting the future
- Industry environment - focus on factors that influence profitability
- Competitor environment - focus on competitor’s actions and responses
2
Q
What is the process of examining the external environment?
A
- Scanning
- Monitoring
- Forecasting
- Assessing
3
Q
Factors under Porter’s five forces model
A
- Bargaining power of suppliers
- Bargaining power of buyers
- Threat of new entrants
- Threat of substitutes
- Rivalry among competitors in the industry
4
Q
Characteristics of an unattractive business environment
A
- Low barriers to entry
- Intense rivalry among competitors
- Suppliers and buyers have a lot of power
- There is a strong threat of substitutes for products
5
Q
Characteristics of an attractive business environment
A
- High barriers to entry
- Moderate rivalry among competitors
- Buyers and suppliers have weak positions
- Low threat of substitutes
6
Q
Factors under the general environment
A
- Political
- Economic
- Sociocultural
- Technological
- Environmental
- Legal
- Demographic
- Global
7
Q
Factors under competitive analysis
A
- Future objectives
- Current strategy
- Assumptions
- Capabilities
All these lead to responses
8
Q
Vision statement
A
An enduring picture of what a company wants to ultimately achieve.
9
Q
Characteristics of an effective vision statement
A
- Clarity
- Brevity
- Future oriented
- Challenging
- Sets a desirable goal
