Chapter 2 Notes

Chapter 2 Notes - Chapter2:Managers&TheEnvironment

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
External Environment:  everything outside the firm that might affect the ability of the  enterprise to attain its goals Three Environments of Business 1. General Environment:  (contextual) includes political and legal forces,  macroeconomic factors, demographic factors, socio-cultural forces, technological  forces, and international forces…impacts the firm through its influence on the  task environment  2. Task Environment:  (transactional) actual and potential competitors, suppliers,  and buyers (customers or distributors)…firms that provide substitute products to  those sold in the industry and firms that provide complements 3. Internal Environment:  (organizational) constitutes everything inside a firm that  affects managers’ ability to pursue actions or strategies When managers analyze the external environment they typically look for  opportunities and threats. Opportunities arise from circumstances or  developments in the external environment that, if exploited through strategies,  enable managers to better attain the goals of their enterprise Threats arise from circumstances or developments in the external environment  that may adversely affect the ability of managers to attain the goals of their  enterprise A strength is an activity that organization is good at , it is a potential source of  competitive advantage  A weakness is an activity that the organization does not excel at, competitive  disadvantage S.W.O.T.:  strengths, weaknesses, opportunities, threats
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Five Forces Model Model of competitive forces that determine the intensity of competition in an 
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/14/2011 for the course ECON 10012 taught by Professor My during the Spring '11 term at Kent State.

Page1 / 5

Chapter 2 Notes - Chapter2:Managers&TheEnvironment

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online