2

Environmental
Scanning
.

()

1. ( )
(External Analysis)
2. ()
(Industry Analysis)
3.
(Internal Analysis)

Mission

1
2

Goals
Objectives
Strategies
Policies
Programs

Budgets
Procedures
Performance
Feedback/Learning

1 (General
Environment) PEST+G

(Political-legal environment)
(Economic environment)

(Sociocultural environment)
(Technological environment)
(Global environment)

(Political-legal environment)

(Environmental protection laws)

(Tax laws)
(Labour laws)

(Stability of government)
(Antitrust regulations)
(Special incentives)


(Economic environment)

(Interest rates)
(Inflation rates)
(Unemployment rates)
(Exchange rate)
(GDP)
(Energy)


(Sociocultural environment)

(Women in the work force)

(Health and fitness awareness)
(Concern for the environment)
(Aging of the population)
(Ethnic composition)
(Birth rate)
(Regional changes in population growth and decline)


(Technological environment)

(Biotechnology)
(Internet Availability)

(Telecommunication infrastructure)
(Patent protection)

(Nanotechnology)

(Total
government & industry spending for R&D)


(Global environment)

(Political-legal environment)

(International laws)
(Terrorist activity)
(Protectionist sentiment)

(Sociocultural environment)

(Culture)
(Language)
(Religious beliefs)


(Global environment)

(Technological environment)

(Patent & Copyright)

(Technology transfer)

(Economic environment)

(Economic alliances)
(Foreign direct investment)
/ (Import/Export)
(Economic development)


(Competitive
Environment)

Porters five Forces

Potential Entrants
Relative Power of
Unions,
Threat of New
Governments, etc.
Entrants
Bargaining Power
Other
Industry Competitors
of Buyers
Stakeholders
Buyers
Suppliers
Bargaining Power
of Suppliers

Rivalry Among
Existing Firms

Threat of Substitute
Products or Services
Substitutes

Porters Five Forces

1. Potential Entrants

1. Industry Competitors

1. Substitutes

1. Suppliers


1. Buyers

(Barriers)

(Economies of scale)
(Product differentiation)
(Capital requirements)
(Switching costs)

(Barriers)

(Access to
distribution channels)
(Cost
disadvantages independent of scale)
(Government Policy)

(Number of competitors)
(Rate of Industry
Growth)
(Product
or Service Characteristics)
(Amount of Fixed Costs)
(Capacity)
(Height of Exit
Barriers: Exit barriers)
(Diversity of Rivals)

/ (Market Share)

(Vertical integration)
(Horizontal integration)


( . )
NINTENDO
SEGA

SONY

MICROSOFT

Nintendo

Console () GameCube
Game boy Advance

Mario

GameCube

Sega

Sega segment Console (Mega drive)

segment Video game
video game
Sega
ESPN ESPN NFL , ESPN NBA
Sega EA
Sega

Sega

Segment ESPN
ESPN


EA

(Birds-eye view)

Console
2k
brand ESPN brand

SONY

Play station 2
action
SONY Game Play
station 2 Mass


limited edition

SONY

Play station 2

Microsoft

Xbox
on-line

Microsoft

on-line


( . )

Cosmetics, Fragrances Toiletries

(CFT) 2
Business Focus: LOral Avon
Business Diversification:
P&G LVMH
CFT
2
department store, drugstore discount store
direct selling retail stores

LOr LOral,
al

Lancme,
Garnier,
Giorgio
Armani,
Vichy, La

Focus

Hair care
products

Roche-Posay,
Matrix,

Redken,

neutralize free

Western

Maybelline,

radicals Europe

Ralph Lauren, 50%

Procter &
Gamble
(P&G)

Max Factor, Diversification

Hugo Boss,
Consumer products
Giorgio

Beverly Hills,
R&D
Cover Girl,

Head &

Shoulders,

Corporate

Pantene Pro-V, revenues 2002

Pert Plus,

Vidal Sassoon,
Olay, Clairol,
Nicen Easy,

$43.3 billions
LOral
Personal care sales
250

Este Este

Lauder Lauder,

Clinique,
Donna

Karan,
Kate

Spade,

Tommy

Hilfiger,

Personal care

Focus

sales 3

2002

$5.1 billion

department store,

Revlon

Revlon,

ColorStay,
Revlon Age
Defying,
Almay,

Ultima, Moon
Drops, Eterna
27, Jeanne
Gatineau,

Charlie, Ciara,
Flex,

Outrageous,

100
Mass-

market

Personal

care sales
9

$1.1
billion

2002

Brand

image

Product line

75

LVMH

Guerlain,

Sephora
Personal
retail beauty
care sales

Kenzo

2002

Christian
Dior,
Givenchy,

Luxury

chain
5
Bliss, Fresh,

Euro 2.3
Make Up 2
billion
For Ever,
Sephora.com
Beauty

11,000
230

(dominated by a few companies)

(unique and/or high switching costs)
(no availability of substitutes)
(Forward integration)
(small
portion of the supplier groups goods and services)

(large proportion of
the sellers products or services)
(backward integration)

(plentiful suppliers)
(low switching
costs)

(high percentage of a
buyers costs)
(low
profits and sensitive to costs and service differences)
(unimportant to
the final quality or price of a buyers products or services)

Stakeholders

(Freeman)

Industry Evolution

Fragmented industry

Consolidated industry

, Internet,

, ,
, ,

Political
Social

Economic

Global Market

Technology

3 (Internal
Environment)

Porters Value Chain

Analysis

Michael E. Porter (1947)

 Primary
activities

Inbound logistics

Operations

Outbound logistics

 Primary
activities

Marketing and sales

Services

 Supporting
activities

Firm
infrastructure

Human resource
management

 Supporting
activities

Technology development

Procurement

Competitive
Advantage

Competitive Advantage

Sustainable Competitive Advantage (SCA)

Core Competency

VRIO framework

Value:
(Does it provide competitive advantage?)
Rareness:
(Do other competitors possess it?)
Imitability:
( Is it costly for others to imitate?)
Organization:
(Is the firm organized to exploit the resource?)

(Organization Effectiveness)


(Marketing Mix)

(Product)

(Price)


(Marketing Mix)

(Promotion)

(Place)

 4
P

(Product)

(Price)

(Place)
/

(Promotion)

Market Position

Market Segmentation

1.

2. /
3.
4.

Product-related

User type
Usage
Benefits
Price sensitivity

Customer Motivation


Product Life Cycle

(Capital Structure)

Leverage Ratio () /

1.

1.

Liquidity Ratio ()

(Working Capital)

(Risk and Return)

Profitability Ratio ()

ROS (Return On Sale)

ROA (Return On Asset)
ROE (Return On Equity)

Common Size Statement

_____________


_____________

_____________

_____________

______________
============

Intranet/Internet

,,

(Quality)
(Speed)
(Cost)
(Technology)
(Flexibility)

(Production Management)
(Logistics Management)

(Inventory Management)

SWOT Analysis

Strengths

Weaknesses

SWOT Analysis

Opportunities

Threats

7
SWOT