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David sm13 PPT 03
David sm13 PPT 03
Strategic Management:
Concepts & Cases
13th Edition
Fred David
Ch 3 -1
Ch 3 -2
External Assessment
It is not the strongest of the species that
Ch 3 -3
External Strategic
Management Audit
Environmental
Scanning
Industry Analysis
Ch 3 -4
External Strategic
Management Audit
Identify & evaluate factors beyond the
control of a single firm
Ch 3 -5
External Strategic
Management Audit
Purpose of an External Audit
Develop a finite list of
opportunities
Ch 3 -6
Ch 3 -7
External Audit
Ch 3 -8
Long-term Orientation
External
Factors
Measurable
Applicable to
Competing Firms
Hierarchical
Ch 3 -9
Industrial Organization
(I/O) View
Ch 3 -10
Industry Properties
Economies of Scale
Barriers to Market Entry
Product Differentiation
The Economy
Level of Competitiveness
Copyright 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 3 -11
Economic Forces
GDP
Unemployment rates
Copyright 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 3 -12
Ch 3 -13
Products
Services
Markets
Customers
Copyright 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 3 -14
US Facts
Aging population
Less White
Widening gap between rich & poor
2025 = 18.5% population > 65 years
2075 = no ethnic or racial majority
Copyright 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 3 -15
Facts
Ch 3 -16
Trends
More American households with
people living alone
Aging Americans affects all
organizations
Ch 3 -17
Ch 3 -18
Protectionist policies
Ch 3 -19
Technological Forces
Major Impact
Internet
Ch 3 -20
Technological Forces
Significance of IT
Ch 3 -21
Technological Forces
Ch 3 -22
Competitive Forces
Collection & evaluation of data on
competitors is essential for successful
strategy formulation
Ch 3 -23
Competitive Forces
Identify Rival Firms
Strengths
Weaknesses
Capabilities
Opportunities
Threats
Objectives
Strategies
Copyright 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 3 -24
Competitive Forces
Competition in virtually all
industries can be described as
intense
Ch 3 -25
Their strengths
Their weaknesses
Their objectives and strategies
Their responses to external variables
Their vulnerability to our alternative
strategies
Our vulnerability to strategic counterattack
Copyright 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 3 -26
Ch 3 -27
Competitive Forces
Ch 3 -28
Competitive Intelligence
Ch 3 -29
Internet
Employees
Managers
Suppliers
Distributors
Customers
Creditors
Consultants
Trade journals
Want ads
Newspaper articles
Government filings
Competitors
Ch 3 -30
Objectives of Competitive
Intelligence
Ch 3 -31
Market Commonality
The
Ch 3 -32
Resource Similarity
Extent
Ch 3 -33
Ch 3 -34
2.
3.
Ch 3 -35
Ch 3 -36
Ch 3 -37
Ch 3 -38
Ch 3 -39
Ch 3 -40
Ch 3 -41
Ch 3 -42
Ch 3 -43
Ch 3 -44
Customer surveys
Market research
Speeches at professional or shareholder
meetings
Television programs
Interviews and conversations with
stakeholders
Ch 3 -45
Periodicals
Journals
Reports
Government documents
Abstracts
Books
Directories
Newspapers
Manuals
Copyright 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 3 -46
http://marketwatch.multexinvestor.com
http://moneycentral.msn.com
http://finance.yahoo.com
www.clearstation.com
https://us.etrade.com/e/t/invest/markets
www.hoovers.com
Ch 3 -47
Ch 3 -48
Assumptions
Estimates of future events based
upon the best available
information in the present
Ch 3 -49
Political
Governmental
Technological
Competitive
Legal
Ch 3 -50
Ch 3 -51
Ch 3 -52
Ch 3 -53
Ch 3 -54
Ch 3 -55
Ch 3 -56
Ch 3 -57
Ch 3 -58