External Environment 3-28-06

External Environment 3-28-06 - Components of the General...

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1 There was a time in America when business was easier. We set the pace of the rest of the world. We were immune to serious foreign competition. Many of us were regulated therefore protected. No longer. Today’s leaders must recreate themselves and their ways doing business in order to stay on top or stay competitive. -- Robert H. Waterman, jr. Political/ Legal Legal Industry Environment Industry Environment Demographic Demographic Economic Economic Technological Global Global Sociocultural Components of the General Environment Components of the General Environment Organization Macroenviroment Political - Legal Forces Economic Forces Social Forces Techno- logical Forces Industry Environment Threat of Entry Bargaining Power of Buyers Rivalry Among Existing Competitors Pressure from Substitute Products Bargaining Power of Suppliers Economic Forces Social, Cultural, Demographic & Environmental Forces Political, Legal and Governmental Forces Technological Forces Competitive Forces Competitors Suppliers Distributors Creditors Customers Employees Communities Managers Stockholders Labor Unions Governments Trade Associations Special Interest Groups Products Services Markets Natural Environments An Organization’s Opportunities and Threats Demographic Economic Political/ Legal Global Technological Sociocultural Industry Environment Competitive Environment Components of the General Environment Identify key structural features of industries that determines the strength of the competitive forces and industry profitability Goal of company best defense against these forces influence the forces in their favor Competition goes well beyond established players – all potential competitors Porter’s Five Forces
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2 Potential Entrants Buyers Suppliers Substitutes The Industry Rivalry Among Existing Firms Threat of New Entrants Bargaining Power of Customers Threat of Substitute Products Or Services Bargaining Power of Suppliers Forces Driving Industry Competition Threat of New Entrants Threat of New Entrants
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This note was uploaded on 04/04/2012 for the course BUSINESS 181 taught by Professor Dara during the Spring '07 term at uot.

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External Environment 3-28-06 - Components of the General...

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