UNIT 3- ORGANIZATIONAL ENVIRONMENT Flashcards
How does external analysis help a company?
it allows to:
- discover threats and opportunities
- to see if they are high profits are likely in an industry
- to understand better about competitors
- make more informed strategic choices.
What are the 2 types of environment in an external environment?
General environment and industry environment
What is another word for general environment?
Macro-environment
What is another word for industrial environment?
Micro-environment
Explain about general environment
It will affect every business, but they won’t usually have a big impact on all business, it’s indirect.
Explain about general environment
It will affect every business, but they won’t usually have a big impact on all business, it’s indirect.
Explain about industry environment
The facal firm faces it. companies that operates in a certain industry would be affected.
What are the six elements in the general environment?
- Tech change
- Demographic Trend
- Environmental trends
- economic trends
- Legal and politic trends
- Specific international events
What are the five common environmental threats?
The threat from:
- new competitors
- competitive rivalry
- from superior or low cost substitutes
- supplier leverage
- buyers’ influence
What does product differentiation refer to?
how different is one product offer compared to another
What does product differentiation refer to?
how different is one product offer compared to another
If the industry has achieved economies of scale
then the threat of new entrants will be lower
