Professional Documents
Culture Documents
Bateman
Snell
Management
Competing
in the
New Era
5th
Edition
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-2
Part One
Chapter 2 - The External Environment
Chapter Outline
The Macroenvironment
The Competitive Environment
Environmental Analysis
Responding to the Environment
Choosing a Response Approach
2-3
Learning Objectives
After
how
2-4
External
all
environment
relevant
two
competitive
a firm
macroenvironment - fundamental factors that generally affect
all organizations
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-5
Suppliers
Organization
Rivals
Economy
Buyers
Competitive
Environment
Macroenvironment
Technology
Demographics
Substitutes
Social
values
2-6
The Macroenvironment
The
macroenvironment
most
and regulations
impose
2-7
economy
created
new
strategies
2-8
Nasdaq
DJIA
S&P 500
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-9
labor force
immigration
increasing
2-10
management
the
2-11
Competitive Environment
Competitive
environment
comprises
successful
managers:
react
2-12
Competitive Environment
New
entrants
New
entrants
Rival firms
New
entrants
New
entrants
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-13
their competitors
analyze how competitors compete
react to and anticipate competitors actions
competition
is most intense:
intense
2-14
of new entrants
barriers
include
Threat
of substitutes
technological
2-15
dependence
switching
suppliers
Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-16
final
customer
2-17
Environmental Analysis
Environmental
Scanning
Scenario
Development
Benchmarking
Forecasting
2-18
Environmental Analysis
Environmental
uncertainty
lack
2-19
scanning
searching
2-20
Environmental
Factor
Unattractive
Attractive
Competitors
Threat of entry
Substitutes
Many
Few
Suppliers
Customers
2-21
development
scenarios
Forecasting
method
2-22
given area
benchmarking team collects information on its own companys
operations and those of benchmark companies to identify gaps
gaps investigated to learn the underlying causes of performance
differences
2-23
to the environment
company
in
2-24
Stable
Complex
Simple
Dynamic
Decentralized
Bureaucratic
(Standardized skills)
Decentralized
Organic
(Mutual adjustment)
Centralized
Bureaucratic
(Standardized work
processes)
Centralized
Organic
(Direct supervision)
2-25
Adapting
Adapting
at the boundaries
buffering
buffers created on both the input and output side of the business
smoothing
Adapting
flexible
at the core
processes - permit adaptation of the technical core
2-26
Influencing
proactive
your environment
Independent
2-27
Changing
strategic
defenders
2-28
cause
Choose