1. The document discusses various concepts related to analyzing external factors that influence firms, including Porter's Five Forces model of competition and performing external audits.
2. Key external forces discussed include economic forces like interest rates, unemployment, and GDP trends, as well as political/governmental forces related to increasing globalization.
3. The document also covers competitive intelligence and analyzing competitors' strengths/weaknesses, as well as how firms should formulate strategies to take advantage of opportunities or minimize threats from external factors.
1. The document discusses various concepts related to analyzing external factors that influence firms, including Porter's Five Forces model of competition and performing external audits.
2. Key external forces discussed include economic forces like interest rates, unemployment, and GDP trends, as well as political/governmental forces related to increasing globalization.
3. The document also covers competitive intelligence and analyzing competitors' strengths/weaknesses, as well as how firms should formulate strategies to take advantage of opportunities or minimize threats from external factors.
1. The document discusses various concepts related to analyzing external factors that influence firms, including Porter's Five Forces model of competition and performing external audits.
2. Key external forces discussed include economic forces like interest rates, unemployment, and GDP trends, as well as political/governmental forces related to increasing globalization.
3. The document also covers competitive intelligence and analyzing competitors' strengths/weaknesses, as well as how firms should formulate strategies to take advantage of opportunities or minimize threats from external factors.
1. The document discusses various concepts related to analyzing external factors that influence firms, including Porter's Five Forces model of competition and performing external audits.
2. Key external forces discussed include economic forces like interest rates, unemployment, and GDP trends, as well as political/governmental forces related to increasing globalization.
3. The document also covers competitive intelligence and analyzing competitors' strengths/weaknesses, as well as how firms should formulate strategies to take advantage of opportunities or minimize threats from external factors.
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Group 1
Quiz
I-Identification
1. Focuses on identifying and evaluating trends and events beyond the control of a single firm. External Audit
2. Advocates that external (industry) factors that are more important than internal factors for gaining/sustaining competitive advantage. The Industrial Organization (I/O) View
3. A systematic, ethical process for gathering/analyzing info about the competitions activities and general business trend to further a business own goals. CI or Competitive Intelligence
4. an educated assumptions about future trends and events. Forecasts
5. It is best present estimates of the impact of major external factors, over which the manager has little/no control; may exert significant impact on performance/ability to achieve desired results
6. Identify rival firms and determine their strengths, weaknesses, capabilities, opportunities, threats, objectives, and strategies. Competitive forces 7. Identifies firms major competitors and their strengths & weaknesses in relation to a sample firms strategic positions. Competitive Profile Matrix CPM 8. Using software to mine huge volumes of data and helps executives make decisions. Business Analytics 9. Economic Forces Shift to service economy, availability of credit, level of disposable income, interest/inflation rates, tax rate variations, price fluctuations, value of the dollar, unemployment trends, GDP trends, Import/export factors, Price fluctuations, Tax rates, Federal government budget deficits
10. Political, Governmental, and Legal Forces Increasing global interdependence among economies, markets, governments, and organizations make it imperative that firms consider the possible impact of political variables on formulation/implementation of competitive strategies
II. True or False
1. Firms should respond offensively or defensively to the factors by formulating strategies that take advantage of external opportunities or that minimize impact of potential threats. T 2. Published sources- customer surveys, market research, speeches at meetings, TV programs. F 3.Unpublished sources periodicals, journals, reports, government documents, manuals, newspapers. F
4. Michael Porter came up with the models while researching the nature of competition. T
5. Firms have Chief Information Officer (CIO) and a Chief Technology Offer (CTO) who work together to ensure that info needed to formulate, implement, and evaluate strategies is available where and when it is needed. T
6. One of the Process of Performing an External Audit is to gather competitive intelligence
and info about economic, social, cultural, demographic, environmental, political, governmental, legal and technological trends. T
7. Firms should respond offensively to the factors by formulating strategies that take advantage of external opportunities or that minimize impact of potential threats. F
8. External Audit reveals key opportunities and threats an organization faces so managers can create strategies to take advantage of opportunities and avoid threats. T
9. One of Results of Technological Advances can create new competitive advantages that are less powerful than existing advantages. F 10. The suppliers in an industry are powerful when: * There are few * Customers are small * Few substitutes * Cost to switch suppliers is high
