External and Internal Environment

External and Internal Environment - I. External and...

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Stakeholder Contribution Inducement (why) Shareholder Capital ($) Appreciation of $ Dividends Employees Labor Compensation Talent Satisfaction Government Rules Provide for General Zoning Strategy Implementation Analyze Opportunity and Threats Strategy Formulation Analyze Strength/ Weakness Establish Mission Star Question Mark (Amazon.com) (bn.com) Cash Cow Dog (Kleenex, Q-tip) (Oldsmobile) WTO- Covers 90% of Trade NAFTA European Union: trade flows through Europe CAFTA EU APEC Central American Trade Agreement Global Transnational (McDonalds) (Caterpillar) International Multinational (Xerox) (Exxon) Middle Man. Employees CEO Strategic- top management executives, looks at things 5-10 years out Tactical- middle management; looks at things annually and quarterly Operational- first line employees; looks at things with a daily or weekly perspective President Finance Manufacturing Engineering Buick Chevy Cadillac GM West of Mississippi Northeast Southeast President Engineering Marketing B1 Bomber F16 Fighter Acctg Manu Mktg Engr Finan Turbulent Stable Changing Fixed Evolved Standard I. External and Internal Environment a. Components of the Macroenvironment i. Social Values- McDonalds switching to cardboard ii. Law and Politics iii. Demographics-age, gender, etc. iv. Technology- pace of change is becoming faster v. Economy b. Components of the Competitive Environment i. Substitutes ii. Rivals 1. Rivals can be many things, not just the obvious, and they may be substitutes. iii. Suppliers (and relationships with them) iv. Buyers v. New Entrants c. Stakeholders: groups and individuals who affect and are affected by the organization and its output. d. Stakeholders Make a contribution because of an inducement. e. General View: f. Strategies for Influencing your environment i. Cooperative Action ii. Independent Action
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iii. Moving in a Different Direction 1. Cooperative Action a. Contracting: legal agreement with someone else b. Cooptation: absorbing a new element into the organization to avert a threat. c. Coalition: two or more organizations act together for a common goal. 2. Independent Action a. Competitive Aggression: exploit a strength. b. Competitive Pacification: agreement between two people to move forward c. Public Relations: Establish and maintain a good image d. Voluntary Action: Corporate commitment to various causes. e. Legal Action: sue to maintain rights f. Political Action: lobbying 3. Moving to a Different Environment a. Domain selection i. You choose where you play b. Diversification i. Finding new customers and products c. Mergers and Acquisitions i. Buying d. Divestiture i. Selling a losing division g. Environmental Attractiveness i. Competitors ii. Substitutes Barriers to Entry iii. Capital Requirements iv. Brand Loyalty II. Strategy a. Basic Strategic Planning Process i. Situational Analysis ii. Develop alternate plans iii. Evaluate goals/plan iv. Select goal/ plan v. Implement vi. Monitor and control 1. These are very similar to the decision making process.
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b.
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External and Internal Environment - I. External and...

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