environmental scanning
INDUSTRY ANALYSIS PAPER POINTERS
ENVIRONMENTAL
SCANNING
and
INDUSTRY ANALYSIS
1
Objectives of the Paper
§ To diagnose the complexity of the external environment § To examine the Opportunities and Threats in the: • Societal Environment – general environment
• Task Environment – groups directly affected by and who directly affect a firm
§ To identify environmental shifts and analyze their impacts on the industry
7/12/11
Conrado T. Montemayor, PhD
Consuelo B. Estepa PhD
Consuelo B. Estepa, PhD
INDUSTRY ANALYSIS PAPER POINTERS
Rationale behind Environmental
Scanning and Industry Analysis
The O & T analysis (from SWOT ) is necessary to determine:
1. If there is a strategic fit between what the environment wants and the firm has to offer, and
2. If there is a strategic fit between what the firm needs and the environment can provide.
7/12/11
Consuelo B. Estepa PhD
2
Framework for Scanning the External Environment
Analysis of Societal Environment
Political-Legal, Economic, Sociocultural, Technological Factors
Market
Analysis
Community
Analysis
Competitor
Analysis
Supplier
Analysis
Interest Group
Analysis
7/12/11
Conrado T. Montemayor, PhD
Selection of
Strategic Factors
• Opportunities
• Threats
Figure 1
Governmental
Analysis
Consuelo B. Estepa PhD
Consuelo B. Estepa, PhD
INDUSTRY ANALYSIS PAPER POINTERS
Your Operating
Environment
Your
Organization’s
External
Environment
Figure 2
Your
Industry
Ecological and natural issues Power or suppliers Current markets Global forces Current competitors Economic indicators Your
Market
Your
Organization
Customers
New competitors Growing or declining
Demographic movements New markets Market size Substitute products Social and cultural shifts
Competitive rivalry Technology trends Political winds 7/12/11
Power of buyers Consuelo B. Estepa
ENVIRONMENTAL
SCANNING
and
INDUSTRY ANALYSIS
1
Objectives of the Paper
§ To diagnose the complexity of the external environment § To examine the Opportunities and Threats in the: • Societal Environment – general environment
• Task Environment – groups directly affected by and who directly affect a firm
§ To identify environmental shifts and analyze their impacts on the industry
7/12/11
Conrado T. Montemayor, PhD
Consuelo B. Estepa PhD
Consuelo B. Estepa, PhD
INDUSTRY ANALYSIS PAPER POINTERS
Rationale behind Environmental
Scanning and Industry Analysis
The O & T analysis (from SWOT ) is necessary to determine:
1. If there is a strategic fit between what the environment wants and the firm has to offer, and
2. If there is a strategic fit between what the firm needs and the environment can provide.
7/12/11
Consuelo B. Estepa PhD
2
Framework for Scanning the External Environment
Analysis of Societal Environment
Political-Legal, Economic, Sociocultural, Technological Factors
Market
Analysis
Community
Analysis
Competitor
Analysis
Supplier
Analysis
Interest Group
Analysis
7/12/11
Conrado T. Montemayor, PhD
Selection of
Strategic Factors
• Opportunities
• Threats
Figure 1
Governmental
Analysis
Consuelo B. Estepa PhD
Consuelo B. Estepa, PhD
INDUSTRY ANALYSIS PAPER POINTERS
Your Operating
Environment
Your
Organization’s
External
Environment
Figure 2
Your
Industry
Ecological and natural issues Power or suppliers Current markets Global forces Current competitors Economic indicators Your
Market
Your
Organization
Customers
New competitors Growing or declining
Demographic movements New markets Market size Substitute products Social and cultural shifts
Competitive rivalry Technology trends Political winds 7/12/11
Power of buyers Consuelo B. Estepa