Term
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Definition
| can influence strategic decisions Law/politics, economy, technology, demographics, social values, ecological factors/trends |
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Term
| What is Porter's 5 Forces Model? |
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Definition
| Competitors, Suppliers, Buyers/switching costs, threat of new entrants, |
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Term
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Definition
Easier when entry barriers are low:
Government policy(patent laws)
Capital requirements(start-upcosts)
Brand identification(consumer brand loyalty)
Cost Disadvantages(Established economies of scale)
Distribution channels(supermarket shelf space) |
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Term
| Substitutes and Complements |
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Definition
Substitue: Threat posed by an alternative
Technological change is typical source
Complement: Opportunity created when one product is used in conjunction with another. |
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Term
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Definition
People-schools
Raw Materials-producers, wholesalers, and distributors
Information-e.g, news media, researchers
Money-investors and creditors |
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Term
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Definition
Price
Quality
Alternatives
Switching Costs |
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Term
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Definition
Final consumers-buy products finished form
intermediate consumers-buy raw materials to process and re-sell to final consumers.
May have great influence over price,quality,design,service. |
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Term
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Definition
Complexity-How many issues? How interconnected
Dynamism-How much discontinuous change in industry? |
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Term
| Responding to Uncertainty |
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Definition
Adapt to the environment
Influence the environment
Move to a new environment |
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Term
| Independent strategy examples |
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Definition
Compete
Public relations
Legal Action
Political Action |
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Term
| Cooperative strategy examples |
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Definition
Contracting-aggreements with outsiders to exchange informations/services
Coopting- absorb new outsiders into your company or its planning/leadership work
Coalition- get others to act jointly on political initiatives. |
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Term
| Change your environments boundaries |
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Definition
Diversification
Merge
Acquire
Divest |
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Term
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Definition
Enviromental trends
Economic trends
Social trends
Trends in demographic patters
technology trends
ecological trends |
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Term
| Industry analysis(5 Issues) |
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Definition
Defining the industry
Choosing dimensions/criteria for analysis
Predicting behavior
addressing firm-level differences
Dealing with dynamism and innovation |
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Term
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Definition
Influnences how people think and behave
Common belief in the companys goals priorities and practices
Good if it encourages appropriate behavior |
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Term
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Definition
Few common Values
Confusion about corporate goals
Unclear guiding principles
Fosters conflict and poor performance |
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Term
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Definition
Mission statements,official goals
Business practices
Symbols,rites,ceremonies
Stores(myths,legends,and true stories) |
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