03

PENILAIAN
Modul ke:

EKSTERNAL
Fakultas Dr. Mirza, ST,MM
FEB

Program Studi

AKUNTANSI
 Chapter 3
The External Assessment

Strategic
Management:
Concepts & Cases
11th Edition
Fred David

Copyright 2007 Prentice Hall

External Strategic
Management Audit

Identify & Evaluate factors beyond the

control of a single firm
– Increased foreign competition
– Population shifts
– Information technology

Copyright 2007 Prentice Hall

Key External Forces & the
Organization Beyond control of organization!

Competitors
Suppliers
Distributors
Creditors
Key Customers Opportunities
External Employees &
Forces
Communities Threats
Managers
Stockholders
Labor Unions
Special Interest Groups
Products
Services

Copyright 2007 Prentice Hall

Performing External Audit

Long-term orientation

Measurable
External
Factors Applicable to
competing firms

Hierarchical

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I/O Perspective Firm Performance

Industry Properties

Economies of Scale
Barriers to market entry

Product differentiation

Level of competitiveness

Copyright 2007 Prentice Hall

 Porter’s Five Forces
Potential development
of substitute products

Bargaining power Rivalry among Bargaining power

of suppliers competing firms of consumers

Potential entry of new competitors

Copyright 2007 Prentice Hall Ch 6 -7

Social, Cultural, Demographic &
Environmental Forces

U.S. Facts
•Aging population
•Less Caucasian
•Widening gap between rich & poor
•2025 = 18.5% population >65 years
•2075 = no ethnic or racial majority

Copyright 2007 Prentice Hall

Key Social, Cultural, Demographic
& Environmental Variables
Childbearing rates

Number of special interest groups

Number of marriages & divorces

Number of births & deaths

Immigration & emigration rates

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Political, Government & Legal
Forces
Globalization of Industry
• Worldwide trend toward similar
consumption patterns
• Global buyers and sellers
• E-commerce
• Technology for instant currency transfers

Copyright 2007 Prentice Hall

Competitive Forces
Identifying Rival Firms

•Strengths
•Weaknesses
•Capabilities
•Opportunities
•Threats
•Objectives
•Strategies

Copyright 2007 Prentice Hall

Competitive Forces
7 Characteristics of most Competitive U.S.
Firms:

1. Market share matters

2. Understand what business you are in
3. Broke or not, fix it
4. Innovate or evaporate

Copyright 2007 Prentice Hall

Competitive Forces
7 Characteristics of most Competitive U.S.
Firms:

5. Acquisition is essential to growth

6. People make a difference
7. No substitute for quality

Copyright 2007 Prentice Hall

 The Five-Forces Model of Competition (Porter)

Potential development
of substitute products

Bargaining power Rivalry among Bargaining power

of suppliers competing firms of consumers

Potential entry of new competitors

Copyright 2007 Prentice Hall

The Global Challenge

Faced by U.S. Firms --

•Gain & maintain exports to other
nations
•Defend domestic markets against
imported goods

Copyright 2007 Prentice Hall

Industry Analysis: The External Factor
Evaluation (EFE) Matrix

Summarize & Evaluate

Economic Demographic Governmental

Social Environmental Technological

Cultural Political Competitive

Copyright 2007 Prentice Hall

 External Factors

• It’s hard to write them!

• Weekend Exercise for Intuit

Copyright 2007 Prentice Hall

Copyright 2007 Prentice Hall
Industry Analysis EFE

Total weighted score of 4.0

• Organization response is outstanding to threats and
weaknesses

Total weighted score of 1.0

• Firm’s strategies not capitalizing on opportunities or
avoiding threats

Copyright 2007 Prentice Hall

Industry Analysis: Competitive Profile
Matrix (CPM)

Identifies firm’s major competitors and

their strengths & weaknesses in
relation to a sample firm’s strategic
positions

Copyright 2007 Prentice Hall

 Gateway Apple Dell
Wt’d Wt’d Wt’d
CSF’s Wt Rating
Score
Ratin
g Score
Rating
Score

Market share 0.15 3 0.45 2 0.30 4 0.60

Inventory sys 0.08 2 0.16 2 0.16 4 0.32
Fin. position 0.10 2 0.20 3 0.30 3 0.30
Prod. Quality 0.08 3 0.24 4 0.32 3 0.24
Cons. Loyalty 0.02 3 0.06 3 0.06 4 0.08
Sales Distr 0.10 3 0.30 2 0.20 3 0.30
Global Exp. 0.15 3 0.45 2 0.30 4 0.60
Org. Structure 0.05 3 0.15 3 0.15 3 0.15

Copyright 2007 Prentice Hall

 Gateway Apple Dell
Wt’d Wt’d Wt’d
CSF’s (cont’d) Wt Rating
Score
Ratin
g Score
Rating
Score

Prod. Capacity 0.04 3 0.12 3 0.12 3 0.12

E-commerce 0.10 3 0.30 3 0.30 3 0.30
Customer Serv 0.10 3 0.30 2 0.20 4 0.40
Price
0.02 4 0.08 1 0.02 3 0.06
competitive
Mgt. 0.01 2 0.02 4 0.04 2 0.02
experience

Total 1.00 2.83 2.47 3.49

Copyright 2007 Prentice Hall

 UST—Key External Factors Weighted
Weight Rating
Opportunities score

Global markets untapped .15 1 .15

Increased demand .05 3 .15
Astronomical Internet growth .05 1 .05
Pinkerton leader in discount market .15 4 .60
More social pressure to quit smoking .10 3 .30
Threats
Legislation against the tobacco industry .10 2 .20
Production limits on tobacco .05 3 .15
Smokeless market SE region U.S. .05 2 .10
Bad media exposure from FDA .10 2 .20
Clinton Administration .20 1 .20
TOTAL 1.00 2.10
Copyright 2007 Prentice Hall Ch 6 -24
 (CPM) Procter
Avon L’Oreal & Gamble
Critical Success Weight Rating Score Rating Score Rating Score
Factor
Advertising 0.20 1 0.20 4 0.80 3 0.60
Product Quality 0.10 4 0.40 4 0.40 3 0.30
Price Competition 0.10 3 0.30 3 0.30 4 0.40
Management 0.10 4 0.40 3 0.30 3 0.30
Financial Position 0.15 4 0.60 3 0.45 3 0.45
Customer Loyalty 0.10 4 0.40 4 0.40 2 0.20
Global Expansion 0.20 4 0.80 2 0.40 2 0.40
Market Share 0.05 1 0.05 4 0.20 3 0.15
Total 1.00 3.15 3.25 2.80
Copyright 2007 Prentice Hall Ch 6 -25
 Competitive Profile Matrix – Royal Caribbean
Key Internal Factors Weigh Rating Weighted
t Score
Strengths
1. Target has a strong position in the discount store 0.07 4 0.28
industry
2. Large share of markets, especially in the upper 0.15 4 0.60
Midwest
3. Good reputation due to donating 5% to local 0.03 3 0.09
communities
4. Continuity of top management 0.04 3 0.12
5. Coordinating financial functions, such as credit cards 0.04 3 0.12
and personnel, among the three divisions
6. Increasing sales per square foot at Target 0.05 4 0.20
7. Rivertown Trading Company provides entry into direct 0.10 4 0.40
sales and Internet shopping
Weaknesses
1. High debt 0.15 2 0.30
2. Sales and earnings flat at Marshall Field’s and 0.10 2 0.20
Mervyn’s
3. Reputation of Mervyn’s for bland merchandise 0.07 2 0.14
4. No identification between the three divisions in the 0.05 2 0.10
eyes of consumers
5. Mr. Ulrich remains CEO of both Target Corporation 0.07 1 0.07
and Target Stores
6. Rivertown Trading Company not a clear fit with other 0.08 1 0.08
divisions
Total 1.00 2.70
Copyright 2007 Prentice Hall
 EFE Matrix
Key Internal Factors Weight Rating Weighted Score
Strengths
1. Target has a strong position in the discount store industry 0.07 4 0.28
2. Large share of markets, especially in the upper Midwest 0.15 4 0.60
3. Good reputation due to donating 5% to local communities 0.03 3 0.09
4. Continuity of top management 0.04 3 0.12
5. Coordinating financial functions, such as credit cards and 0.04 3 0.12
personnel, among the three divisions
6. Increasing sales per square foot at Target 0.05 4 0.20
7. Rivertown Trading Company provides entry into direct sales 0.10 4 0.40
and Internet shopping
Weaknesses
1. High debt 0.15 2 0.30
2. Sales and earnings flat at Marshall Field’s and Mervyn’s 0.10 2 0.20
3. Reputation of Mervyn’s for bland merchandise 0.07 2 0.14
4. No identification between the three divisions in the eyes of 0.05 2 0.10
consumers
5. Mr. Ulrich remains CEO of both Target Corporation and 0.07 1 0.07
Target Stores
6. Rivertown Trading Company not a clear fit with other 0.08 1 0.08
divisions
Total 1.00 2.70

Copyright 2007 Prentice Hall

Terima Kasih
Dr.Mirza, ST,MM