MICRO-ENVIRONMENTAL ANALYSIS – EXTERNAL

INDUSTRY

Industry Life Cycle

Competitive Concentration/Fragmentation
Barriers To Entry
Exit Barriers
Product Differentiation
Price Structure & Trends
Economics of Scale & Cost Trends
Price Elasticity
Utilization of Capacity
Distribution Systems
Marketing Systems
Manufacturing Systems (Integration, Automation, Technological Change, Labor, Unions)
Financial Requirements & Systems (Capital Markets)

MARKETS

Segments
Size & Growth Rates
Buyer Needs (Information, Physical Satisfaction, Economics
Product Life Cycles
Holes
Market (Characteristics (Buyer Concentration, Motive, Usage, Brand Loyalty, Price
Sensitivity)

COMPETITION

By Market or Market Segment

Corporate & Business Strategies
Strengths & Weaknesses
Potential Competitors (Strength, Weaknesses, etc)
Indirect Competition (Functional Substitution, Innovations)

SUPPLIER

Critical Supply Shortages

Industry Trends
Strengths, Weaknesses, & Strategies
Capacity
Alternative Sources
MICRO-ENVIRONMENTAL ANALYSIS – INTERNAL

Resources

Physical
Financial
Personnel/Organization
Technological
Distinctive Competency

Preferences

Top Management
Middle Management
Other Employees
Suppliers
Customers
Stocker holders
Others
MACRO ENVIRONMENTAL ANALYSIS

This strategic planning model is designed to identify five separate processes required
prior to implementing a plan. The outcomes of each stage in the process are identified.
Others, of course may occur, but the ones cited are usually critical.

ECONOMIC

GNP
Inflation
Monetary & Fiscal Policy
Interest Rates
Wage & Price Controls
Tax Incentives

DEMOGRAPHICS

Population Growth
Shifts In Population
Aging

SOCIO-CULTURAL

Career Expectations
Life Styles
Consumer Demands

POLITICAL/REGULATORY

Anti-Trust
Occupational Safety & Health Act (OSHA)
Environmental Protection Agency (EPA)
Securities Exchange Commission (SEC)
National & International Situations

TECHNOLOGICAL

Business Innovations
Contextual Innovations
SWOT ANALYSIS

Strengths & Weaknesses

This composite list will be the result of the extensive review process that has occurred
during the Environmental Analysis activities.

Opportunity Analysis

Consistency
Outcomes (Quantifiable, Realistic – Probability Scenarios)
Political
Group Feasibility
Group Synergy

Implemental Opportunity Groups

This output forms a solid basis for proceeding with consideration of strategies. Each
strategy must be fully considered.

STRATEGIC FORMULATION

● Mission Statement

● Goals – (Financial, Stockholders, Personnel, Customer, Product, Facilities,

Societal)
● Objectives – (Sales, Profits, Dividends, Wages, Satisfaction, Facilities Timetable,
Taxes/Contributions)
● Policies – (Geographic Coverage, Product/Market Scope, Distribution, Pricing
Promotion/Advertising, Branding, Mfg. Systems, Research & Development,
Labor, Financing Organizations)