David PPT Abbrev Ch03 1c
Chapter 3
The External Assessment
Strategic
Management:
Concepts & Cases
11th Edition
Fred David
Ch 3 -1
Key External Forces & the Organization
Beyond control of organization!
Key
External
Forces
Competitors
Suppliers
Distributors
Creditors
Customers
Employees
Communities
Managers
Stockholders
Labor Unions
Special Interest Groups
Products
Services
Opportunities
&
Threats
Ch 3 -3
Performing External Audit
Long-term orientation
External
Factors
Measurable
Applicable to competing firms
Hierarchical
Ch 3 -4
Porter’s Five Forces
Potential development of substitute products
Bargaining power of suppliers
Rivalry among competing firms
Bargaining power of consumers
Potential entry of new competitors Copyright 2007 Prentice Hall
-6
ChCh63-6
The Five-Forces Model of Competition (Porter)
Potential development of substitute products
Bargaining power of suppliers
Rivalry among competing firms
Bargaining power of consumers
Potential entry of new competitors Ch 3 -13
Industry Analysis: The External Factor
Evaluation (EFE) Matrix
Summarize & Evaluate
Economic
Social
Cultural
Government
Demographic
al
Technologica
Environmental l Political
Competitive
Ch 3 -15
Ch 3 -16
External Factors
• It’s hard to write them!
• Weekend Exercise for Intuit
Ch 3 -17
Industry Analysis EFE
Total weighted score of 4.0
• Organization response is outstanding to threats and weaknesses
Total weighted score of 1.0
• Firm’s strategies not capitalizing on opportunities or avoiding threats
Ch 3 -19
Industry Analysis: Competitive Profile
Matrix (CPM)
Identifies firm’s major competitors and their strengths & weaknesses in relation to a sample firm’s strategic positions
Ch 3 -20
Gateway
CSF’s
Apple
Dell
Wt
Rating
Wt’d
Score
Ratin g Wt’d
Score
Rating
Wt’d
Score
Market share
0.15
3
0.45
2
0.30
4
0.60
Inventory sys
0.08
2
0.16
2
0.16
4
0.32
Fin. position
0.10
2
0.20
3
0.30
3
0.30
Prod. Quality
0.08
3
0.24
4
0.32
3
0.24
Cons.
The External Assessment
Strategic
Management:
Concepts & Cases
11th Edition
Fred David
Ch 3 -1
Key External Forces & the Organization
Beyond control of organization!
Key
External
Forces
Competitors
Suppliers
Distributors
Creditors
Customers
Employees
Communities
Managers
Stockholders
Labor Unions
Special Interest Groups
Products
Services
Opportunities
&
Threats
Ch 3 -3
Performing External Audit
Long-term orientation
External
Factors
Measurable
Applicable to competing firms
Hierarchical
Ch 3 -4
Porter’s Five Forces
Potential development of substitute products
Bargaining power of suppliers
Rivalry among competing firms
Bargaining power of consumers
Potential entry of new competitors Copyright 2007 Prentice Hall
-6
ChCh63-6
The Five-Forces Model of Competition (Porter)
Potential development of substitute products
Bargaining power of suppliers
Rivalry among competing firms
Bargaining power of consumers
Potential entry of new competitors Ch 3 -13
Industry Analysis: The External Factor
Evaluation (EFE) Matrix
Summarize & Evaluate
Economic
Social
Cultural
Government
Demographic
al
Technologica
Environmental l Political
Competitive
Ch 3 -15
Ch 3 -16
External Factors
• It’s hard to write them!
• Weekend Exercise for Intuit
Ch 3 -17
Industry Analysis EFE
Total weighted score of 4.0
• Organization response is outstanding to threats and weaknesses
Total weighted score of 1.0
• Firm’s strategies not capitalizing on opportunities or avoiding threats
Ch 3 -19
Industry Analysis: Competitive Profile
Matrix (CPM)
Identifies firm’s major competitors and their strengths & weaknesses in relation to a sample firm’s strategic positions
Ch 3 -20
Gateway
CSF’s
Apple
Dell
Wt
Rating
Wt’d
Score
Ratin g Wt’d
Score
Rating
Wt’d
Score
Market share
0.15
3
0.45
2
0.30
4
0.60
Inventory sys
0.08
2
0.16
2
0.16
4
0.32
Fin. position
0.10
2
0.20
3
0.30
3
0.30
Prod. Quality
0.08
3
0.24
4
0.32
3
0.24
Cons.