Term
|
Definition
| looking at info from the internal/external environments |
|
|
Term
|
Definition
| (climate, physical resources, wildlife) |
|
|
Term
|
Definition
-Economic Forces
-Technological Forces
-Political-Legal
-Sociocultural |
|
|
Term
|
Definition
| Elements/groups that directly affect corp or are affected by a corp (govt, community, supplier, etc.) |
|
|
Term
|
Definition
| in-depth examination of key factors within a corp's task environment |
|
|
Term
|
Definition
| costs not included in a business firm's accounting systems, but felt by others. (pollution) |
|
|
Term
|
Definition
| Sociocultural, Technological, Economic, Ecological, and Political-Legal environmental forces. |
|
|
Term
|
Definition
| transfer of profits from a foreign subsidiary to a corporation's headquarters |
|
|
Term
|
Definition
| States that a country cannot grant a trading partner lower customs duties without granting them to all other WTO members |
|
|
Term
| (8) current Sociocultural trends |
|
Definition
-Increasing Environmental awareness
-Growing health consciousness
-Expanding seniors market
-Impact of Gen. Y boomlet
-Declining mass market (want for products tailored to specific needs ei: shampoo)
-Changing pace and location of life
-Changing household composition
Increasing diversity of workforce and markets |
|
|
Term
| Multination Corporation (MNC) |
|
Definition
| company with significan assets/activities in multiple countries |
|
|
Term
|
Definition
| When demand for a particular product or service is ready to boom |
|
|
Term
| Origin of Competitive Advantage |
|
Definition
| Lies in ability to identify and respond to environmental change well in advance of competition |
|
|
Term
|
Definition
| Willingness to reject unfamiliar as well as negative information |
|
|
Term
|
Definition
1)Identify likely trends that are strategic environmental issues (if occur, affect industry/world)
2)Assess probably of them actually occurring (low, medium, high)
3) Attempt to ascertain the likely impact of each trend on corporation |
|
|
Term
| External Strategic Factors |
|
Definition
| Key fundamental trends that are judged to have both a medium to high probability of occurrence and m-h prob. of impact on corporation. |
|
|
Term
| Industry Analysis Competitive Forces (6) |
|
Definition
-Threat of New Entrants
-Rivalry Among Existing Firms
-Threat of Substitute Products/Services
-Bargaining Power of Buyers
-Bargaining Power of Suppliers
-Relative power of other stakeholders |
|
|
Term
|
Definition
| new capacity, a desire to gain market share, and substantial resources |
|
|
Term
|
Definition
-Economies of Scale (Scale economies in production/sales of microprocessors gave intel a significant cost adv. over any new rival)
-Product Differentiation (Recognized brands create higher barrier)
-Capital Requirements (need for large initial investments to compete)
-Switching Costs (reluctancy to switch products/services)
-Access to Distribution Channels (difficulty finding shelf space)
-Cost disadvantages independent of size ("standard" products hold largest mkt share)
-Government Policy (limit entry through licensing reqs and restricted access to raw materials) |
|
|
Term
|
Definition
-Economies of Scale (Scale economies in production/sales of microprocessors gave intel a significant cost adv. over any new rival)
-Product Differentiation (Recognized brands create higher barrier)
-Capital Requirements (need for large initial investments to compete)
-Switching Costs (reluctancy to switch products/services)
-Access to Distribution Channels (difficulty finding shelf space)
-Cost disadvantages independent of size ("standard" products hold largest mkt share)
-Government Policy (limit entry through licensing reqs and restricted access to raw materials) |
|
|
Term
| Factors for competition (7) |
|
Definition
-Number of Competitors
-Rate of Industry Growth
-Product or service characteristics
-Amount of fixed costs
-Capacity
-Height of exit barriers
-Diversity of Rivals |
|
|
Term
|
Definition
product that appears to be different but can satisfy the same need as another product. (Coffee and Tea, Bottled water and Coke)
-when switching costs are low, substitutes have strong effect |
|
|
Term
| Powerful buyer bargaining power characteristics |
|
Definition
-Buyer purchases large proportion of product/service
-Buyer has potential to integrate backward by producing product themselves
-Alt. suppliers are plentiful because of a standardized product (gas stations)
-Changing suppliers cost very little
-Purchased product represents high percentage of buyer's cost=incentive to shop around for lower price
-Buyer earns low profits, so must be sensitive to costs
-Product purchased is unimportant to final quality/price of buyer's product (wiring) |
|
|
Term
| Powerful Supplier bargaining power chars |
|
Definition
-Supplier industry is dominated by a few companies (petro)
-Product is unique
-Substitutes are not readily available (electricity)
-Suppliers are able to integrate forward and compete directly with customers
-Purchasing industry only buys small portions and is unimportant to supplier |
|
|
Term
|
Definition
| Company or Industry whose product works well with a firm's product and without which the product would lose much of its value |
|
|
Term
|
Definition
| No firm has large market share, all have small share (cleaning services) |
|
|
Term
|
Definition
| Dominated by few large firms struggling to differentiate from others (petro) |
|
|
Term
|
Definition
| Operate worldwide, make only small adjustments for country-specific circumstances. |
|
|
Term
|
Definition
Business Units/firms that pursue similar strategies with similar resources.
-some strat-groups in an industry are more profitable than others. (McD's, BK, Arby's) |
|
|
Term
|
Definition
| a category of firms based on a common strategic orientation and a combination of structure, culture, and processes consistent with that strategy |
|
|
Term
|
Definition
| Limited product line that focus on improving efficiency of their existing operations |
|
|
Term
|
Definition
| Fairly broad product lines focus on product innovation and market opportunities |
|
|
Term
|
Definition
| Corps that operate in at least two different product-market areas, one stable and one variable. in stable-efficiency emphasized, in variable-innovation |
|
|
Term
|
Definition
| Lack a consistent strategy-structure-culture relationship. |
|
|
Term
|
Definition
playrs create a condition of constant equilibrium and change.
-short product life cycles
-new tech
-frequent new entrants |
|
|
Term
|
Definition
| Variables that can significantly affect the overall competitive positions of companies within any particular industry |
|
|
Term
|
Definition
| Formal program of gathering information on a company's competitors |
|
|
Term
|
Definition
| extension of present trends into the future |
|
|
Term
|
Definition
| separated experts independently assess the likelihoods of specified events |
|
|
Term
|
Definition
| quantitative technique that attempts to discover causal or at lease explanatory factors that link two or more time series together (regression analysis) |
|
|
Term
|
Definition
| written description of future state, in terms of key variables and issues. Used to envision what customers might want in future. |
|
|
Term
|
Definition
External Factors Analysis Summary
-Way to organize external factors into the generally accepted categories of opportunities and threats and analyze how they are handled |
|
|
