Section Page Number
1 Introduction 2
2 External Environment 2 2.1 P.E.S.T. Analysis 2 2.1.1 Political/Legal 2 2.1.2 Economic 2 2.1.3 Social/Cultural 2 2.1.4 Technological 2 2.1.5 Key Drivers for Change from PEST Analysis 3 2.2 Porters Five Forces Analysis 3 2.2.1 Introduction 3 2.2.2 Threat of Entry (Medium to low) 3 2.2.3 Buyer Power (Low) 4 2.2.4 Supplier Power (Low) 4 2.2.5 Threat of Substitutes (Low) 4 2.2.6 Competitive Rivalry (Medium to High) 4 2.2.7 Conclusions from Five Forces Analysis 5 2.3 Strategic Group Analysis 5 2.3.1 Analysis 5 2.3.2 Barrier to Mobility 5
3 Internal Analysis 6 3.1 Resource Audit 6 3.1.1 Tangible Resources 6 3.1.2 Intangible Resources 6 3.2 Value Chain Analysis 6 3.3 Resource and Competencies 7 3.3.1 Unique Resources 7 3.3.2 Core Competencies 7
4 Conclusions 8
Appendix 1 External Analysis
Appendix 2 Porter’s Five Forces Analysis and Diagram
Appendix 3 Strategic Group Analysis and Diagram
Appendix 4 Resource Audit
Appendix 5 Value Chain Links and Value Chain Diagram
Appendix 6 Resources and Competencies
Bibliography
Introduction
This report looks at the Changes that have taken place in Viking Sewing Machines AB in the past few years and assesses if these have been a rational response to changes in the External Environment.
External Environment
(See Appendix 1)
1 P.E.S.T. Analysis
1 Political/Legal
Companies trading in a global market have to be aware of the politics of each country they trade in. Government stability is important as it could become an expensive error to invest in a country that then seizes operations of foreign companies. Taxation, Tariffs and Quotas all need to be appraised before trading with a new country, as does the local laws regarding machine mechanical or electrical safety.
2 Economic
Companies have to be aware
Bibliography: 1 Introduction Michael Porters Five Forces Analysis (1980) is an important tool in analysing competitiveness within an industry or sector