(B) Explain environmental scanning and competitive intelligence.
both searching out information that is unavailable to most people and
sorting through that information to interpret what is important and what is not (ex:
who are the current competitors… );
Searching for and sorting through
information about the environment. In order to understand and predict changes,
opportunities and threats, in organizations.
the information necessary to decide how best to manage in the
(B) Explain forecasting and benchmarking.
used to predict exactly how some variable or variables will change in the future.
(ex: try to forecast how interest rates will change)
Identifying the best-in-class performance by a company in a given area and then
comparing your processes to theirs.
(B) Explain buffering and smoothing.
one approach for adapting to uncertainty—ex: input side: hiring extra part-time
employees during busy seasons, output side: having extra inventory in case of a
When sales go down, cut prices—ex: at the end of a clothing season = big discounts
(B) Explain diversification, merger, and divestiture.
when a firm invests in different types of businesses or products or when it
expands geographically to reduce its dependence on a single market
when two or more firms combine or one firm buys another to form a single
company and broaden its revenues and customer service.
when a company sells one or more businesses
(B) Define a stakeholder and provide some examples of who this includes.
groups and individuals who affect and are affected by the achievement of the
organization's mission, goals, and strategies. Examples: buyers, suppliers, competitors,
government and regulatory agencies, unions and employee groups, the financial community,
owners and shareholders, and trade associations
(B) Summarize an Environmental Analysis as presented in Table 4.1.
Industry and Market, Competitor, Political and Regulatory, Social, Human Resources,
Macroeconomic, and Technological
SEE PAGE 145
(B) Summarize an Internal Resource Analysis as presented in Table 4.2
Resources are inputs to production that can be accumulated over time to enhance performance of
a firm. Financial, Human Resources, Marketing, Operations
SEE PAGE 147
(B) Explain corporate strategy concepts of vertical integration, concentric diversification, and conglomerate diversification.
expanding the domain of the organization into supply channels or to
distributors. Ex: Ford owned steel companies, he way to showroom co’s
moving into new businesses that are related to the co’s original core
business (restaurants taking on catering businesses, too)