{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ACCT 3583 Notes -joyce q - Joyce Kim[z3290553 TOPIC 1...

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

View Full Document Right Arrow Icon
Joyce Kim [z3290553] TOPIC 1: EXTERNAL ENVIRONMENT THE GENERAL ENVIRONMENT, INDUSTRY AND COMPETITOR ENVIRONMENTS General Environment - General environment: is composed of dimensions in broader society that influence an industry and, indirectly, firms within in. - Dimensions are grouped into 6 environmental segments: Demographic, Economic, Political/Legal, Socio-cultural, Technological and Global - Successful companies gather the information required to understand each segment and its implications for the selection and implementation of the appropriate strategies. - E.g. the Sep 11 terrorist attacks in the U.S surprised businesses and governments throughout the world and this single set of events has had substantial effects on the global economy. Industry Environment - Industry environment: is the set of factors that directly influences a firm and the competitive actions and competitive responses; the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes and the intensity of rivalry among competitors. - Challenge is to locate a position within an industry where a firm can favourably influence those factors, or where it can defend/immune itself against their influence. Competitor Environment - Competitor analysis: the method in which companies gather and interpret information about their competitors. - General environment analysis→ future-focused - Industry environment → focused on the factors and conditions influencing a firm’s profitability within its industry - Competitor analysis → focused on predicting the dynamics of competitor’s actions, response and intentions. EXTERNAL ENVIRONMENTAL ANALYSIS - Employed to increase understanding of General Environment
Image of page 1

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

View Full Document Right Arrow Icon
Joyce Kim [z3290553] - Continuous Process involves 4 activities: Scanning, Monitoring, Forecasting & Assessing. - Opportunity: is a condition in the general environment that, if exploited, helps a company achieve strategic competitiveness. - E.g. in the area of telecommunications, firms in the Asia-Pacific region were able to utilise the new GSM digital mobile phone technology from Europe much earlier than in the U.S, which persisted with its analogue mobile phone technology until only very recently. - Threat: is a condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness. - E.g. Polaroid can attest to the seriousness of external threats. When its competitors developed photographic equipment using digital technology, it remained focused on its core business and was unprepared to respond to its competitors’ actions in a timely or effective manner. As result, the company was forced to file for bankruptcy in 2001. In 2002, the formed Polaroid Corp. was sold to Bank One’s OEP Imaging unit, changing it’s name to Polaroid Corp.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern