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Flashcards

EXTERNAL ENVIRONMENT

starry_eyed_ English 43 cards

Cards in this deck (43)

  1. 1STRATEGIC GROUPSOrganisations within an industry with similar strategic characteristics, following similar strategies or competing on similar bases
  2. 2STRATEGIC GROUPS- IDENTIFIED BYMARKET COMMONALITY VS. RESOURCE SIMILARITY
    - Indirect competitors (subs)
    - Direct competitors
    - Potential competitors (potential new entrants)
  3. 3STRATEGIC GROUPS- CASE STUDYHOSPITALITY INDUSTRY
    GEOGRAPHIC FOCUS VS. PRODUCT SCOPE
    - Luxury (mandarin oriental)
    -Nationally focused single brand (travel lodge)
    - International branded (Best western)
    - Global multi-brand (hilton)
  4. 4STRATEGIC GROUPS- USED FOR-Understanding comp
    - Strategic opportunities in white space (or black holes?)
    - Mobility barriers, good to be in a group with strong mobility barriers to impede immitation
  5. 5INDUSTRY STRUCTURE ANALYSISPORTER'S 5 FORCES
    VALUE NET
    STRATEGIC GROUPS
  6. 6PORTERS 5 FORCES- KEY COMPONENTSCompetitive Rivalry
    Threat of New Entrants
    Threat of Substitutes
    Bargining power of Buyers
    Bargining power of Suppliers
  7. 7THREAT OF NEW ENTRANTSENTRY BARRIERS- high or low?
    - exp curve
    - scale economies
    - access to supply/distribution channels
    - expected retaliation
    -Superior contacts/knowledge
  8. 8THREAT OF SUBSTITUTESSIMILAR BENEFIT DIFFERENT PROCESS
    - Caps industry prices (e-books)
    - price/performance ratio crucial
    - come from outside the industry
  9. 9BARGAINING POWER OF BUYERSHigh when-
    - concentrated buyers
    -low switching costs
    - threat of backward vertical integration
  10. 10BARGAINING POWER OF SUPPLIERSHIGH when-
    - concentrated suppliers
    - high switching costs
    - threat of forward vertical integration (e.g. airlines bypassing travel agents)
  11. 11COMPETITIVE RIVALRYSIMILAR PRODUCTS/SERVICES AIMED AT THE SAME CUSTOMER GROUP
    - balance of size
    - industry growth rate
    - high fixed costs
    - high barriers to exit
    - Low differentiation to stop customers switching
  12. 12MARKET STRUCTURE AND FEATURES (5 FORCES)Monopoly, oligopoly, monopolistic comp, perfect comp. HYPERCOMPETITION.
    Sliding scale,
    Sustainability of CA, high to low.
    Comp low to high.
    Stability high to low.
    Defensive to aggressive strategy
  13. 13HYPERCOMPETITON- CHARACTERISTICSD'Aveni 1994
    UNSTABLE, COMPLEX, DYNAMIC
    Constant disequilibrium
    Blurred industry barriers
    Barriers to entry and CA unsustainable
  14. 14HYPERCOMPETITION- CAUSESRapid tech change
    Globalization
    Fragmenting consumer tastes
    Deep company pockets due to alliances
  15. 155 FORCES- SUITABLE FOROLIGOPOLY
  16. 16HYPERCOMPETITON- EXAMPLESoftware industry
  17. 17PORTER'S 5 FORCES- WEAKNESSES (1)INDUSTRY DRIVES PERFORMANCE
    - Is the business unit more important
    - Rumelt 1991 differences in profit were greater between firms in same industry than between diff industries
    - Industry has more of an impact on profit in turbulent sectors
  18. 18PORTER'S 5 FORCES- WEAKNESSES (2)HOW DEFINED ARE INDUSTRIES?
    - different perspectives on industries (acedemic vs manager)
    - convergence and blurred boundaries
    - analyse multiple markets to get a full picture
  19. 19PORTER'S 5 FORCES- WEAKNESSES (3)Oversimplifies buyers and suppliers
  20. 20PORTER'S 5 FORCES- WEAKNESSES (4)OVER-EMPHASIZES MACRO- what about product/market segments, outdoor sports vs performance
  21. 21PORTER'S 5 FORCES- WEAKNESSES (5)STATIC MODEL IN A DYNAMIC ENVIRONMENT
  22. 22PORTER'S 5 FORCES- WEAKNESSES (6)FAILS TO LINK TO ACTION
  23. 23PORTER'S 5 FORCES- STRENGTHSComplex eco theory in a USABLE format
    PRACTICAL TOOL managers can use, identifies competitors and broad industry
  24. 245 FORCES- REFINEMENTSCOMPLIMENTORS (A 6TH FORCE)
    - customers value your product more when they have the other org's product
    - its more attractive for suppliers to supply resources to you when they also supply the other org
    - microsoft windows software and macafee security
    - move towards a co-operation perspective, link to value net
  25. 255 FORCES REFINEMENTS (2)GRUNDY'S 5 2006 REFINEMENTS
    -Interdependencies
    - Combine with macro-eco
    -Prioritize (force field analysis)
    - Examine sub forces
    -Segment within the industry
  26. 265 FORCES REFINEMENTS- INTERDEPENDENCIESThink of the 5 forces as an interactive system, can suppliers impact the threat of new entrants?
    put diff forces in the center spot
  27. 275 FORCES REFINEMENTS- COMBINE WITH MACRO-ECOAdd in PEST, do the forces have a positive or negative impact?
    PEST all positive, 5 forces may not be felt
  28. 285 FORCES- REFINEMENTS, PRIORITISINGForce field analysis (favorable, unfavorable, length of arrow equal severity
  29. 295 FORCES- REFINEMENTS, EXAMINE SUB-FORCESRIVALRY- commitment, mind-set, number, similarity
  30. 305 FORCES- REFINEMENTS, DYNAMISMRadar plot, compare current and predicted
  31. 31VALUE NETA map of organisations in a business environment that demonstrate opportunities for value creating co-operation as well as competition
  32. 32PORTER'S 5 FORCES- WEAKNESSES (6)Focuses on threats not opps
  33. 33VALUE NET- KEY COMPONENTSCOMPANY PRODUCT (e.g. ipod)
    - Customers
    - Competitors (sony mp3 players)
    - Complimentors (sony music)
    - Suppliers (sony lithium polymer battery)
  34. 34PESTLEOk for stable environments, not dynamic.
    Based upon key drivers for change- identifying what's really important
    3 add-ons, dynamism, complexity and uncertainty
  35. 35SENARIO PLANNING- DEFFDETAILED and PLAUSIBLE view of how the environment of an org may develop in the future depending on KEY DRIVERS FOR CHANGE about which there is a high level of UNCERTAINTY
  36. 36SENARIO PLANNING- PURPOSEprompts managers to be alert to a range of possibilities
  37. 37FORECASTINGSingle path to the future, assumes today will be like tomorrow, does not account for unpredictable environment
  38. 38SENARIO PLANNING- CONSTRUCTIONDrivers of change, basic trends, key uncertainties, rule of interaction= multiple senarios
  39. 39SENARIO PLANNING- CASE STUDYVisit Scotland- key drivers of change, key uncertainties, 2 key themes emerged.
    Banana wars- tariffs removed, small Caribbean farmers suffered, what do they do?
  40. 40SENARIO PLANNING- SUITABLE WHEN?A few discrete possible outcomes or a range of possibilities NOT where there is a clear future or ambiguity that does not provide a base for forecasting
  41. 41SENARIO PLANNING- PAPERSCHOEMAKER AND DAY 2009- scanning for weak signals.
    Identify and minimize org and personal biases.
    Actively identify weak signals (networks, search parties).
    Amplify them (senarios).
    Probe and clarify (constructive conflict)
  42. 42MACRO-ENVIRONMENT ANALYSISPESTLE
    SENARIO PLANNING
  43. 43LAYERS OF THE EXTERNAL ENVIRONMENTMACRO-ENVIRONMENT (generally not influenced by businesses)
    INDUSTRY/SECTOR ENVIRONMENT (can we define industries an more?)
    COMPETITIVE ENVIRONMENT

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Flashcards on EXTERNAL ENVIRONMENT, created by starry_eyed_ on 24/04/2013.
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