Professional Documents
Culture Documents
Chapter 3 External Assessment
Chapter 3 External Assessment
Competitors
Suppliers
Distributors
Creditors
Key Customers Opportunities
External Employees &
Forces
Communities Threats
Managers
Stockholders
Labor Unions
Special Interest Groups
Products
Services
Performing External Audit
Long-term orientation
Measurable
External
Factors Applicable to
competing firms
Hierarchical
I/O Perspective Firm Performance
Industry Properties
Economies of Scale
Product differentiation
Level of competitiveness
Social, Cultural, Demographic &
Environmental Forces
U.S. Facts
•Aging population
•Widening gap between rich & poor
•2025 = 18.5% population >65 years
•2075 = no ethnic or racial majority
Key Social, Cultural, Demographic &
Environmental Variables
Childbirth rates
Globalization of Industry
• Worldwide trend toward similar
consumption patterns
• Global buyers and sellers
• E-commerce
• Technology for instant currency transfers
Competitive Forces
Identifying Rival Firms
•Strengths
•Weaknesses
•Capabilities
•Opportunities
•Threats
•Objectives
•Strategies
Competitive Forces
7 Characteristics of most Competitive U.S.
Firms:
Potential development
of substitute products