CLC – Environmental and Industry Analysis for Strategic Management class - Excel file

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BUS-485-RS-Environmental-Industry-Analysis-Frameworksample.xlsx

3.1

Environemtnal Industry Analysis Framework
A B C D E F G
Environmental Force Concept to research Trend / Issue Impact for Corporation Impact for Business Unit Why exactly Does Company care Sources
Ecconomic Growth / Recession
Economy in US growing 3.2% https://www.bloomberg.com/news/articles/2019-05-30/u-s-first-quarter-growth-revised-down-to-3-1-pace-from-3-2
26% sales in US Corp SEC 10K
73% of op unit sales in US Corp SEC 10K
General prospects strong Opinion
Inflation possible Opinion
Watch transportation costs =20% of COGS Corp SEC 10K
Yield Curve inverted https://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/textview.aspx?data=yield
Possible recession https://seekingalpha.com/article/4234707-care-yield-curves
90% business into telcom Corp SEC 10K
telcom down 36% in 07-09 recession https://www.netcials.com/finance/if-recession-comes-which-sectors-will-be-hit-hardest-based-on-past/
Opportunity to raise capital https://seekingalpha.com/article/4234707-care-yield-curves
Float bonds prep for takeover of competitor Opinion
Opportunity ro refi balance sheet https://seekingalpha.com/article/4234707-care-yield-curves
Capital costs lower Corp SEC 10K
Capital intensive industry Dunn & Bradstreet
Competitors may be able to drop prices Opinion
Economy in EU growing 1.2% https://seekingalpha.com/article/4234707-care-yield-curves
two major competitors US based Dunn & Bradstreet
21% of op unit sales in EU Company xyz 10K
Sector growth
Interest rate trends
Government spending
Taxation
Saving rates
Budget defecit
Home sales
Commodity prices
Emerging markets
Money suppy
Nature of competition
Currency convertability
Demographic Regional changes
Ethnic composition
Age demographics
Education levels
Poverty levels
Urban / Rural
Physical/Sustainable Sustainability
Corporate social responsibility
Renewabitily of resources
Downstream impacts
Sociocultural Stakeholders
Work / Life balance
Social mobility
Enterpreneurial spirit
Lifestyle
Career expectations
Pension systems
Healthcare systems
Unionization
Global Trade agreements
Trade defecits
Exchange rates
Political trends
Political/Legal Differences among laws
Cost of litigation
Regulatory initiatives
Tax policy changes
State-owned industry
Consumer protections
IP protection
Hiring
Outsourcing regulation
Technology Population conectedness
Access to global network systems
R&D focus
Technology transfer
Key technology evolution
Manufacturing innovations
Technology adoption
IP protection
Automation
Telecomunications
PORTER 5 FORCES
Threat of new entrants Economies of scale
Product differentiation
Capital requirements
Switching costs
Access to distribution channels
Government policies
Threat of substitute products Switching Costs
Technological Advances
Customer desires
Cultural /Sociocultural
Rivalry among existing firms Number of competitors
Rate of industry growth
Product or service characteristc
Fixed / variable cost
Capacity
Exit barriers
Diversity of rivals
Bargaining power of buyers Large purchasers
Backward integration
Alternative suppliers
Low switching costs
Percentage of buyers costs
Profitability of buyers
Significance of product to buyer
Bargaining power of suppliers Competitor dominance
Uniqueness
Lack of substitute
Ability to forward integrate

Environmental Industry Analysis Framework

https://www.bloomberg.com/news/articles/2019-05-30/u-s-first-quarter-growth-revised-down-to-3-1-pace-from-3-2