ACCT 3583 Notes -joyce q

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

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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
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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. The former CEO of Ford took over as CEO and found that the brand still had commercial value
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ACCT 3583 Notes -joyce q - Joyce Kim [z3290553] TOPIC 1:...

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