1、Ch 3 -1Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallChapter 3 The External AssessmentStrategic Management: Concepts & Cases12th EditionFred DavidCh 3 -2Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallChapter OutlineThe Nature of the External AuditThe Industrial

2、 Organization (I/O) ViewSocial, Cultural, Demographic, and Environmental ForcesCh 3 -3Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallChapter Outline (contd)Political, Governmental, and Legal ForcesTechnological ForcesCompetitive ForcesCh 3 -4Copyright 2009 Pearson Education, Inc.

3、Publishing as Prentice HallChapter Outline (contd)Porters Five-Forces ModelSources of External InformationForecasting Tools & TechniquesCh 3 -5Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallChapter Outline (contd)Global ChallengeThe External Factor Evaluation (EFE) MatrixCompetiti

4、ve Profile Matrix (CPM)Ch 3 -6Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” Charles DarwinExternal Assessment“Nothing focuses the mind better than the constant

5、sight of a competitor who wants to wipe you off the map.” Wayne Calloway, Former CEO, PepsiCoCh 3 -7Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallExternal Strategic Management Audit Environmental Scanning Industry AnalysisCh 3 -8Copyright 2009 Pearson Education, Inc. Publishing a

6、s Prentice HallIdentify & evaluate factors beyond the control of a single firmIncreased foreign competitionPopulation shiftsAging societyFear of travelingStock market volatilityExternal Strategic Management AuditCh 3 -9Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallPurpose of Exte

7、rnal AuditIdentifyOpportunitiesThreatsExternal Strategic Management AuditCh 3 -10Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallCh 3 -11Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallGather competitive intelligence SocialCulturalDemographicEnvironmentalGovernmen

8、talLegal TechnologicalExternal AuditCh 3 -12Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallExternal Audit Sources of InformationInternetLibrariesSuppliersDistributorsSalespersonsCustomersCompetitionCh 3 -13Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallPerformin

9、g External AuditKey Factors Vary over timeVary by industryCh 3 -14Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallPerforming External Audit VariablesMarket shareBreadth of competing productsWorld economiesForeign affiliatesProprietary account advantagesCh 3 -15Copyright 2009 Pearso

10、n Education, Inc. Publishing as Prentice HallPerforming External Audit VariablesPrice competitivenessTechnological advancementsInterest ratesPollution abatementCh 3 -16Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallPerforming External AuditExternal FactorsMeasurableLong-term Orien

11、tationApplicable to Competing FirmsHierarchicalCh 3 -17Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallIndustrial Organization (I/O) View Industry factors more important than internal factorsPerformance determined by industry forcesCh 3 -18Copyright 2009 Pearson Education, Inc. Pub

12、lishing as Prentice HallEconomies of ScaleIndustry PropertiesBarriers to Market EntryProduct DifferentiationLevel of CompetitivenessI/O Perspective Firm PerformanceCh 3 -19Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallResearch Findings “Approximately 20% of a firms profitability

13、can be explained by the industry, whereas 36% of the variance in profitability is attributed to the firms internal factors”Ch 3 -20Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallEconomic ForcesTrends in the dollars valueEuropean UnionLayoffsEconomic standard of livingCh 3 -21Copyr

14、ight 2009 Pearson Education, Inc. Publishing as Prentice HallCh 3 -22Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallSocial, Cultural, Demographic, and Environmental ForcesMajor Impact ProductsServicesMarketsCustomersCh 3 -23Copyright 2009 Pearson Education, Inc. Publishing as Pren

15、tice HallSocial, Cultural, Demographic, and Environmental ForcesU.S. FactsAging populationLess CaucasianWidening gap between rich & poor2025 = 18.5% population 65 years2075 = no ethnic or racial majorityCh 3 -24Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallStates with the Highest

16、 Percentage of MinoritiesNevadaArizonaGeorgiaFloridaIdahoNorth CarolinaColoradoCh 3 -25Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallCh 3 -26Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallSocial, Cultural, Demographic, and Environmental ForcesFactsWorld populat

17、ion approaching 7 billionWorld population = 8 billion by 2028World population = 9 billion by 2054U.S. population 300 millionCh 3 -27Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallTrendsMore American households with people living aloneAging Americans affects all organizationsPopula

18、tion shift to the south and westDecimation and degradation of the natural environmentSocial, Cultural, Demographic, and Environmental ForcesCh 3 -28Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallGlobal trendsChinas labor rates less than MexicoChina provides more site location ince

19、ntives than MexicoSocial, Cultural, Demographic, and Environmental ForcesCh 3 -29Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallNatural Environment PerspectiveBusiness Leaders Pushing for Legislation on Climate Change10 CEOs pressuring for caps on greenhouse-gas omissionsDesiring

20、a single national emissions capTop 5 buyers of green power:PepsiCoWells FargoWhole FoodsU.S. Air ForceJohnson & JohnsonCh 3 -30Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallSocial, Cultural, Demographic, and Environmental ForcesMore educated consumersAging populationMinorities mo

21、re influentialLocal rather than federal solutions21st Century TrendsCh 3 -31Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallSocial, Cultural, Demographic, and Environmental Forces (contd)Fixation with youth decreasingHispanics increase to 15% by 2021African-American increase to 14%

22、 by 202121st Century TrendsCh 3 -32Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallKey Social, Cultural, Demographic, and Environmental VariablesNumber of marriages & divorcesNumber of special interest groupsNumber of births & deathsImmigration & emigration ratesChildbearing ratesC

23、h 3 -33Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallActuarial RatesMonitor KeyVariablesPer Capita eAttitudes Toward BusinessAvg. Disposable eSocial, Cultural, Demographic, and Environmental ForcesCh 3 -34Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallConsumer

24、BehaviorMonitor KeyVariablesEthical ConcernsAttitudes Toward SavingRacial EqualitySocial, Cultural, Demographic, and Environmental ForcesCh 3 -35Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallAvg. Educational LevelMonitor KeyVariablesGovernmental RegulationAttitudes Toward Custome

25、r ServiceAttitudes Toward QualitySocial, Cultural, Demographic, and Environmental ForcesCh 3 -36Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallEnergy ConservationMonitor KeyVariablesSocial ResponsibilityLeisure-Time ValuesRecyclingSocial, Cultural, Demographic, and Environmental F

26、orcesCh 3 -37Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallWaste ManagementMonitor KeyVariablesAir & Water PollutionOzone DepletionEndangered SpeciesSocial, Cultural, Demographic, and Environmental ForcesCh 3 -38Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallPo

27、litical, Governmental, and Legal ForcesKey opportunities & threatsAntitrust legislationTax ratesLobbying effortsPatent lawsGovernment RegulationCh 3 -39Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallPolitical, Governmental, and Legal ForcesPolitical variables impact Formulation of

28、 strategiesImplementation of strategiesIncreasing Global InterdependenceCh 3 -40Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallPolitical, Governmental, and Legal ForcesStrategists in a global economy Forecast political climatesLegalistic skillsDiverse world culturesIncreasing Glob

29、al InterdependenceCh 3 -41Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallPolitical, Governmental, and Legal ForcesWorldwide trend toward similarconsumption patternsGlobal buyers and sellers merceTechnology for instant currency transfersGlobalization of IndustryCh 3 -42Copyright 20

30、09 Pearson Education, Inc. Publishing as Prentice HallKey Political, Governmental, and Legal VariablesSpecial tariffsTax law changesPACsVoter participation ratesRegulation/deregulationCh 3 -43Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallKey Political, Governmental, and Legal Var

31、iables (contd)Environmental protection lawsChanges in patent lawsEqual employment legislationGovernment subsidiesNumber of patentsCh 3 -44Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallKey Political, Governmental, and Legal Variables (contd)Import/export regulationsGlobal relation

32、shipsPolitical conditions Location and severity of terrorist activityAnti-trust enforcementCh 3 -45Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallTechnological ForcesMajor Impact InternetCommunicationsSemiconductorsCh 3 -46Copyright 2009 Pearson Education, Inc. Publishing as Prent

33、ice HallTechnological ForcesSignificance of ITChief Information Officer (CIO)Chief Technology Officer (CTO)Ch 3 -47Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallTechnological ForcesEssential for nearly every strategic decisionTechnology-based issuesCh 3 -48Copyright 2009 Pearson

34、Education, Inc. Publishing as Prentice HallCompetitive ForcesCollection & evaluation of data on competitors is essential for successful strategy formulationCh 3 -49Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallCompetitive ForcesCompetition on virtually all industries can be descr

35、ibed as intenseCh 3 -50Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallCompetitive ForcesStrengthsWeaknessesCapabilitiesOpportunitiesThreatsObjectivesStrategiesIdentifying Rival FirmsCh 3 -51Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallKey Questions Concerning

36、CompetitorsTheir objectives and strategiesTheir weaknessesTheir responses to external variables Their vulnerability to our alternative strategiesTheir strengthsCh 3 -52Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallKey Questions Concerning Competitors (contd)Entry and exit of firm

37、s in the industryOur product/service positioningKey factors for our current position in industrySales/profit rankings of competitors over timeOur vulnerability to strategic counterattackCh 3 -53Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallKey Questions Concerning Competitors (co

38、ntd)The threat of substitute products/servicesNature of supplier & distributor relationshipsShould we keep our strategies secret fromemployees and stakeholders?Ch 3 -54Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallCompetitive ForcesMoodys ManualsStandard Corporation DescriptionsV

39、alue Line Investment SurveysDuns Business RankingsStandard & Poors Industry SurveysIndustry WeekForbes, Fortune, BusinessWeekSources of Corporate InformationCh 3 -55Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallCompetitive ForcesMarket share mattersUnderstand what business you ar

40、e inBroke or not, fix itInnovate or evaporate7 Characteristics of Most Competitive U.S. Firms:Ch 3 -56Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallCompetitive ForcesAcquisition is essential to growthPeople make a differenceNo substitute for quality7 Characteristics of Most Compe

41、titive U.S. Firms:Ch 3 -57Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall The Five-Forces Model of CompetitionCh 3 -58Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallSteps to Determine if an Acceptable Profit Can Be EarnedIdentify key aspects or elements of each

42、competitive forceEvaluate how strong and important each element is for the firmDecide whether the collective strength of the elements is worth the firm entering or staying in the industryCh 3 -59Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallThe Five-Forces ModelMost powerful of t

43、he five forcesFocus on competitive advantage of strategiesRivalry Among Competing FirmsCh 3 -60Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallThe Five-Forces ModelBarriers to entry are importantQuality, pricing, and marketing can e barriersPotential Entry of New CompetitorsCh 3 -6

44、1Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallThe Five-Forces ModelPressures increase when consumers switching costs decreaseFirms plans for increased capacity & market penetrationPotential Development of Substitute ProductsCh 3 -62Copyright 2009 Pearson Education, Inc. Publishi

45、ng as Prentice HallThe Five-Forces ModelLarge number of suppliers & few substitutes affects intensity of competitionBackward integration can gain control or ownership of suppliersBargaining Power of SuppliersCh 3 -63Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallThe Five-Forces Mo

46、delCustomers concentrated or buying in volume affects intensity of competitionConsumer power is higher where products are standard or undifferentiatedBargaining Power of ConsumersCh 3 -64Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallConditions Where Consumers GainBargaining Power

47、If they can inexpensively switchIf they are particularly importantIf sellers are struggling in the face of falling consumer demandIf they are informed about sellers products, prices, and costsIf they have discretion in whether and when they purchase the productCh 3 -65Copyright 2009 Pearson Educatio

48、n, Inc. Publishing as Prentice HallForecasting Tools and TechniquesForecasts are educated assumptions about future trends and eventsQuantitative techniques most appropriate when historical data is available and there is a constant relationshipQualitative techniquesCh 3 -66Copyright 2009 Pearson Educ

49、ation, Inc. Publishing as Prentice HallThe Global ChallengeFaced by U.S. Firms Gain & maintain exports to other nationsDefend domestic markets against imported goodsCh 3 -67Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallGlobal PerspectiveChinas Automobile Producers Heading to the

50、United States in 2008Chinas auto exports doubled in 2006China produces more cars than Germany and is the worlds third largest automobile producerChangfeng Group first Chinese automaker in the Detroit Auto Show Ch 3 -68Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallThe Global Chall

51、engeSimultaneously globally competitive & nationally responsiveMultinational Corporations (MNCs)Ch 3 -69Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallThe Global ChallengeWorldwide integration of:Strategy formulationStrategy implementationStrategy evaluationGlobalizationCh 3 -70Co

52、pyright 2009 Pearson Education, Inc. Publishing as Prentice HallThe Global ChallengeSimilar consumption patternsGlobal buyers and sellers merceInstant transmission of money & informationGlobalization of IndustriesCh 3 -71Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallIndustry Anal

53、ysis: The External Factor Evaluation (EFE) MatrixCompetitivePoliticalCulturalTechnologicalEnvironmentalSocialGovernmentalDemographicEconomicSummarize & EvaluateCh 3 -72Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallCh 3 -73Copyright 2009 Pearson Education, Inc. Publishing as Prent

54、ice HallCh 3 -74Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallTotal weighted score of 4.0Organization response is outstanding to threats and weaknessesIndustry Analysis EFETotal weighted score of 1.0Firms strategies not capitalizing on opportunities or avoiding threatsCh 3 -75Copyright 2009 Pearson Education, Inc. Publishing as Prentice HallIndustry Analysis EFEUnderstanding the factors used in the EFE Matrix is more important than the actual weights and ratings assigned.Important Ch 3 -76Copyright 2009 Pearson Education, Inc. P