Bus policy report by ms dumdum
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Transcript of Bus policy report by ms dumdum
Opportunity and Threat of External
Environment
OPPORTUNITIES & THREATS
Opportunity a condition in the general environment
that, if exploits, helps a company achieve strategic
competitiveness
Threat a condition in the general environment that may
hinder a company’s efforts to achieve strategic
competitiveness
AIM & OBJECTIVE
Discuss the organization as an open system and assess
the impact of a number of environmental forces to
understand the opportunity-driven strategy depends
upon an ability to manage and to manage in the business
environment
To examine the threat of the business and implement
process to the strategic plan of the organization.
EXTERNAL ENVIRONMENT
The external environment comprises of all the entities
that exist outside its boundary, but have significant
influence on its growth and survival.
An organization has little or no control over its
environment but needs to constantly monitor and adapt
to these external changes, a pro active or reactive
response leads to significantly different outcome
TYPES OFEXTERNAL ENVIRONMENT
Direct interactive
this environment has an immediate and firsthand impact upon the organization.
Indirect interactive
this environment has a secondary and more distant effect upon the organization
EXTERNAL ENVIRONMENT ANALYSIS
Scanning, Identifying early signals of environmental
changes and trends.
Monitoring Detecting meaning through ongoing
observations of environmental changes and trends
Forecasting Developing projections of anticipated
outcomes based on monitored changes and trends.
Assessing Determining the timing and importance of
environmental changes and trends for firms strategies
and their management.
ANALYSIS OF THE EXTERNAL ENVIRONMENT
General Environment focused on the future
Industry Environment focused on factors and conditions
influencing a firm’s profitability within an industry
Competitor Environment focused on predicting the
dynamics of competitors’ actions, responses and
intentions
General Environment Dimension
Demographic Segment
Economic Segment
Political/Legal Segment
Sociocultural Segment
Technological Segment
Global Segment
THREAT OF NEW ENTRANTS barriers
To entry Economies of scale
High differentiate products or well-known brand names
Capital requirements
High consumer switching costs
Assess the distribution channels
Cost advantages independent of scale
Government policy Expected retaliation
THREAT OF NEW ENTRANTS
BARGAINING POWER OF THE SUPPLIER
BARGAINING POWER OF BUYERS/CUSTOMERS
THREAT OF PRODUCT SUBSTITUTES
INTENSITY OF RIVALRYAMONG COMPETITORS
COMPETITOR ENVIRONMENT
Competitor intelligence
The ethical gathering of needed information and data
that provides insight into
A competitor’s direction (future objective)
A competitor’s capabilities and intentions (current
strategy)
A competitor’s beliefs about the industry (its
assumption)
A competitor’s capabilities
COMPETITIVE ANALYSIS
Who are your competitors?
Do you know about your close competitors’ strengths
and weaknesses?
How detail should we analyze the competition?
Use a systematic approach
Analysis competition at various levels
EXAMPLE OF THREAT AND OPPORTUNITIES
The strength of economy effects
The level of demand includes shareholders, and capital
markets
Their satisfaction with company success
Changes in structure
Labour market
Availability of skills Influence of trade unions
EXAMPLE OF THREAT AND OPPORTUNITIES
Robotics in manufacturing
Technology Computers
Information technology
Changing population - by ageSociocultural
environment
Changing tastes and values
Regional movements
EXAMPLE OF THREAT AND OPPORTUNITIES
Suppliers Availability and cost of suppliers
Changes in preferences and
Customers purchasing power
Changes in competitive strategies
Competitors Innovation Effects of good and bad publicity,
The media drawing attention to companies, products and
services
WHY IS IT IMPORTANT TO KNOW THE COMPANY
OPPORTUNITIES AND THREATS?
By examining opportunities, you can discover untapped
markets, and new products or technologies, or identify
potential avenues for diversification
By examining threats, you can identify unfavorable
market shifts or changes in technology, and create a
defensive posture aimed at preserving your competitive
position
CONCLUSION
It is important for company to pay attention to external environment
The research in external environment is essential for the business
The company that adapt its strategy to the changes of external environment is likely to be more competitive in the business