Topic 4: External Environmental Analysis

Question 1

Why conduct External Environmental Analysis?

Answer 1

• Supports the development of Core Strategy and Objectives

- Supports the development of Competitive Positioning: Where to compete, How to compete

Question 2

Supports the development of Core Strategy and Objectives (Why conduct External Environmental Analysis?)

Answer 2

Identify Key Success Factors (KSFs): Understand relative performance of existing competitors
Identify current and predict future Threats & Opportunities, Macro and Micro factors, Identify likely future competitors

Question 3

Supports the development of Competitive Positioning: where and how to compete (Why conduct External Environmental Analysis?)

Answer 3

Understand:

• evolving customer needs & wants
• relative attractiveness of Segments
• relative Positioning of competitors

Question 4

Levels of External Environmental Analysis

Answer 4

• Macro: PESTLE, Megatrends
• Micro: 5 Forces, Strategic Group, Product Life cycle, competitior analysis, customer analysis
• Organisation

Question 5

Macro: Megatrends

Answer 5

global shifts reshaping the world we live in

Question 6

Macro: PESTEL

Answer 6

Political, economic, social, technology, legal and environmental

The what and the so what (why do the company care)

Question 7

Porters 5 forces

Answer 7

• Competitive Rivalry
• Supplier Power
• Buyer Power
• Threat of Substitution
• Threat of New Entry

Question 8

Product Lifecycle stages

Answer 8

• Introduction
• Growth
• Maturity
• Decline

Look at model for more info before exam

Question 9

Competitor Analysis

Answer 9

• Define the competitive arena for the generic, specific and variant product markets
• Define key competitors
• Analyse & predict competitors’ future strategies

Question 10

PLEASE RELOOK at lecture 4 before exam important

Answer 10

PLEASE RELOOK at lecture 4 before exam important

Question 11

Defining your current competitors (circle)

Answer 11

Primary - Who/what consumers would mainly use if not our proposition?

Secondary - Other propositions/services/products that consumers would consider using

Substitutes - Viable substitutes to using our core proposition