Management
MGMT 4890-01 Business Policy and Strategy Week 2
Strategy Analysis - External
Assessing External Environment
The General Environment
The Industry Environment
Competitors
2
External Environment
Predicts environmental changes to come
Detects changes already under way
Streams of activities or trends from outside the organization
Identifies rivals’ strengths & weaknesses
Collect data on competitors
Interpret intelligence data
3
SWOT Analysis
Firm or internal conditions = Strengths & Weaknesses
Environmental or external conditions = Opportunities & Threats
General environment
Activities among firms competing for the same customers
4
Environmental Analysis to Industry Analysis
5
Industry Environment
Suppliers
Competitors
Customers
Demographics / Sociocultural
Economics / Technology
Legal / Political
Porter’s Five-Forces Model of Industry Competition
A tool for examining the industry-level competitive environment
6