...Management Review, 51(3), 74-94. Derfus, P. J., Maggitti, P. G., Grimm, C. M., & Smith, K. G. (2008). The red queen effect: Competitive actions and firm performance. Academy of Management Journal, 51(1), 61-80. Franken, A., Ewards, C., & Lambert, R. (2009). Executing strategic change: Understanding the critical management elements that lead to success. California Management Review, 51(3), 49-73. COURSE LEARNING OUTCOMES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Identify the vision, mission, and stakeholders of a firm. Identify how the six segments of the general environment affect an industry and its firms. Identify the five forces of competition. Analyze the external environment for opportunities and threats that impact the firm. Analyze the internal environment of a company for strengths and weaknesses that impact the firm’s competitiveness. Identify various levels and types of strategy in a...
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...Click Link Below: http://strtutorials.com/BUS-490-WK-4-Quiz-3-Ch-3-All-Possible-Questions-BUS4903.htm BUS 490 WK 4 Quiz 3 Ch. 3 - All Possible Questions 1) Industry analysis is also referred to as external strategic management audit. 2) An external audit focuses on identifying and evaluating trends and events within the control of management. 3) The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business. 4) External audits attempt to identify key variables that offer actionable responses. 5) Five major categories of external variables are: 1) economic forces, 2) social and cultural forces, 3) political, governmental and legal forces, 4) technological forces and 5) demographic forces. 6) As many managers and employees as possible should be involved in the process of performing an external audit. 7) To perform an external audit, a company first must gather competitive intelligence and information about social, cultural, demographic, environmental, economic, political, legal, governmental and technological trends. 8) Freund argues that key external factors must not be hierarchical. 9) The I/O approach to competitive advantage advocates that internal factors are more important than external factors in a firm achieving competitive advantage. 10) An economic trend in America is the increasing numbers of two-income households. 11) Economic factors do not have much impact on the attractiveness...
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...Click Link Below: http://strtutorials.com/BUS-490-WK-4-Quiz-3-Ch-3-All-Possible-Questions-BUS4903.htm BUS 490 WK 4 Quiz 3 Ch. 3 - All Possible Questions 1) Industry analysis is also referred to as external strategic management audit. 2) An external audit focuses on identifying and evaluating trends and events within the control of management. 3) The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business. 4) External audits attempt to identify key variables that offer actionable responses. 5) Five major categories of external variables are: 1) economic forces, 2) social and cultural forces, 3) political, governmental and legal forces, 4) technological forces and 5) demographic forces. 6) As many managers and employees as possible should be involved in the process of performing an external audit. 7) To perform an external audit, a company first must gather competitive intelligence and information about social, cultural, demographic, environmental, economic, political, legal, governmental and technological trends. 8) Freund argues that key external factors must not be hierarchical. 9) The I/O approach to competitive advantage advocates that internal factors are more important than external factors in a firm achieving competitive advantage. 10) An economic trend in America is the increasing numbers of two-income households. 11) Economic factors do not have much impact on the attractiveness...
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...Porter's Five Force (http://www.strategicmanagementinsight.com/tools/porters-five-forces.html) “Porter’s five forces model is an analysis tool that uses five forces to determine the profitability of an industry and shape a firm’s competitive strategy” Understanding the tool Five forces model was created by M. Porter in 1979 to understand how five key competitive forces are affecting an industry. The five forces identified are: These forces determine an industry structure and the level of competition in that industry. The stronger competitive forces in the industry are the less profitable it is. An industry with low barriers to enter, having few buyers and suppliers but many substitute products and competitors will be seen as very competitive and thus, not so attractive due to its low profitability. It is every strategist’s job to evaluate company’s competitive position in the industry and to identify what strengths or weakness can be exploited to strengthen that position. The tool is very useful in formulating firm’s strategy as it reveals how powerful each of the five key forces is in a particular industry. Threat of new entrants. This force determines how easy (or not) it is to enter a particular industry. If an industry is profitable and there are few barriers to enter, rivalry soon intensifies. When more organizations compete for the same market share, profits start to fall. It is essential for existing organizations to create high barriers to enter to deter new...
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...Strategic management is important for four reasons. First, it makes a difference in how well organizations perform. Second, it’s important for helping managers cope with continually changing situations. Third, strategic management helps coordinate diverse divisions, departments, functions, and work activities, and keeps all focused on achieving the organization’s goals. Finally, it’s important because it’s involved in many of the decisions that managers make. The Strategic Management Process ✓ List the six steps in the strategic management process. ✓ Describe what managers do during external and internal analyses. ✓ Explain the role of resources, capabilities, and core competencies. ✓ Define strengths, weaknesses, opportunities, and threats. The six steps in the strategic management process are: (1) identify the current mission, goals, and strategies; (2) do an external analysis; (3) do an internal analysis – steps 2 and 3 collectively are known as SWOT analysis; (4) formulate strategies; (5) implement strategies; and (6) evaluate strategies. (See Exhibit 8-1.) During an internal analysis, managers assess the organization’s resources (assets) and capabilities (how work is done). The major value-creating skills and capabilities are the organization’s core competencies. Any activities the organization does well or any unique...
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...Chapter 2 Objectives 1. Explain the importance of analyzing and understanding the firm’s external environment. It is important for a firm to analyze and understand their external environment, because the external environment can pose opportunities and threats. As the firm seeks to gain competitive advantage and above-average returns they are influenced by external environment. The firm needs to understand the segments (demographic, political, global, physical, etc.) with their environment in order to achieve their goal. As more firms enter the market and as technology changes and grow in affects a firm capability of having or maintain competitive advantage, so firms need to have full awareness of what is happening in the external environment. 2. Define and describe the general environment and the industry environment. The general environment could be considered as the outer layer that is widely dispersed and affects organizations indirectly. The general environment is a group of seven environmental segments (demographic, economic, political/legal, sociocultural, technological, global, and physical) which influence an industry and the firms within it. A firm does not directly control the general environment, but by all means firm’s actions are influence by the segments. The industry environment directly influences a firm and its competitive actions and response. A firm response and competitive actions may be influenced by these set of factors: the threat of new entrants...
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...1. Introduction When examine the marketing environment should analysis the macroenviorment, microenvironment, internal and external audits. Marketing environment not only influence by macroenviorment also of the company its own marketplace and its clients (Vignali et al., 2008, p. 361). Penrose (1959) and Hatch (1997) also suggested that competitive strategy requires both the exploitation of existing internal and external firm-specific capabilities in order to develop new ones. To analysis the microenvironment of a company, the competitive environment must be given the great importance, by trying to construct the competitive strategy, an assessment of the external environment will help to answer one basic question that is what will happen in the markets in which company choose to compete(Asch & Bowman, 1996)? By answering this, the company can therefore to find a well position for its company and make their own strategies but in the meantime, the other issues will be raised, that is what markets are the company are competing in? In order to define the market the firm is, company need to know well about what customers needs, and who it is the customers see the firm will competing with. Porter (1980) said that “the first step in structural analysis is an assessment of the competitive environment – the basic competitive forces and the strength of each in shaping industry structure. The second is an assessment of the company's own strategy-of how well it has positioned...
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...when a firm can do something that rival firm cannot do, or owns something that rival firm desire (Fred, 2013). For example, Nestlé core competency is food and beverages that is full with nutrition, health and wellness. By defining own core competencies and SWOT (strength, weaknesses, opportunity and treats) the company will be able to focus on its organisation uniqueness. In this study, I will focus on the core competency for Company SapuraKencana Petroleum Berhad. This study is organised as follows; section 2.0 will be informing the background of SapuraKencana Petroleum Berhad. Section 3.0 is regarding SapuraKencana Petroleum general environment analysis which divided into five broad categories; economic force, social, cultural, demographic, and natural environment forces, political, governmental and legal forces,...
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...Synergetic Solutions “Synergetic Solutions Inc. is a $6 million company in the business of system integration – assembling and reselling leading computers brands. It has 300 employees – mostly in the sales and service departments – working in five locations across the East Coast. Most employees in this trading organization possess only basic computer assembling and troubleshooting skills, while a few higher-skilled individuals operate as the specialists” (University of Phoenix, 2014). Harold Redd is the CEO of Synergetic Solutions. Harold strategic decision for Synergetic is to focus on networking solutions business. Harold wants the COO to turn the business around within nine months. In doing so, the COO will describe three internal and external forces of change for Synergetic Solutions, implementing a change strategy successfully; to change models the leader might employ, evaluate the communication necessary to implement change. The COO will also explain at least five kinds of resistance, and the strategies one might employ to manage each of these areas of resistance. Synergetic has several internal and external forces of change. The internal forces are; people, system, and structures. The external forces of change are; competition, economy, and technology. These changes will prevent the organization to move forward. The plan for Synergetic is to improve operational efficiencies and production standards, improve organizational effectiveness and employee well-being...
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...External Analysis of Starbucks 1 RUNNING HEAD: STARBUCKS External Environmental Analysis of Starbucks and the Coffee Industry Harold Brown Strategic Management MGMT 4340 Dr. Nwabueze March 3, 2011 External Analysis of Starbucks 2 Contents 1.0.0. Executive Summary ...................................................................................................................... 5 2.0.0. Company History ................................................................................................................................ 8 2.1.0. Background ....................................................................................................................................... 12 Table 1: Starbucks Revenue Trends 2005-2010 ..................................................................................... 12 2.2.0. Purpose of This Study ....................................................................................................................... 14 3.0.0. External Analysis .............................................................................................................................. 15 Diagram 1: The Components of a Coffee Firm’s Macroenvironment .................................................... 16 3.1.0. General Environmental Analysis ...................................................................................................... 16 3.1.1. Demographic Segment ...................................................................
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...Five Competitive Forces Analysis in the Insurance Industry RichardSmith Managerial Economics December 6, 2013 Industry Insurance is something that is needed by everyone today. It is used by individuals, business, corporations, etc. to help mitigate or minimize their financial risk. Various types of insurance exist today, from home, health, life, auto, travelers, indemnity, boat, renters, and even pet. Competition between insurance carriers is very stiff. In fact, in the United Kingdom (UK), the competition is so stringent, they have created a Competition Commission (CC), which is designed to ensure healthy competition between insurance companies in the UK for the ultimate benefit of the consumers and the economy ("Competition Commission GOV.UK."01). Many insurance companies have gotten caught up in having an unbalanced pool of insurers because they were not prepared and did not do their homework. The have to be very careful in their underwriting process to ensure they insure the most desirable individuals. Many insurance companies have learned quickly the value in the knowledge and power of information obtained from doing research and the huge financial risk associated with getting stuck with a poor unbalanced pool of insured. Therefore, many insurance companies today are utilizing various tools and setting themselves apart from the competition via the competitive forces in an effort to avoid the financial repercussions associated with not being prepared. That way...
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...Rothaermel Exercise 1 BUSI 690 29 June 2014 Discussion Question 1.1 (2 parts to this question): 1.1. A strategy is a term used to describe the firm’s “overall efforts to gain and sustain competitive advantage” (Rothaermel, 2013, p. 9). The “translation of the strategy into action takes place in the firm’s business model, which details the firm’s competitive tactics and initiatives” (Rothaermel, p. 11). Basically, a strategy will explain how a firm will make money but the difference between a strategy and the business model is the business model explains how the firm intends to make the money AND puts it into action; the strategy just gives the theory. Business models put strategy into action. A strategy focuses on the company in relation to its competition and the business model focuses on the company in isolation. 1.1a. How they are similar is both business strategies and business models look toward a firm’s future and are both essential in decision-making within a company. A firm’s strategy and business model working hand in hand becomes the nuts and bolts behind how a firm intends to achieve its overall goal, which is to make and increase profit. Discussion Question 1.2 (3 part to this question): 1.2a. Crowdsourcing is defined as “the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community rather than from traditional employees or suppliers” (Merriam-Webster...
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...Business Strategy 4 External Environment Prof. Dr. Bernd Venohr Berlin, April 2007 © 2007 Prof. Dr. Bernd Venohr Agenda Introduction to Strategy 1 2 3 4 5 6 7 8 9 Course Overview and Strategy Concept Economics of Strategy Shareholder Value External Environment Internal Environment Competitive Positioning Diversification Mergers & Acquisitions Global Strategy Business Strategy Corporate Strategy Strategy Process 10 Organizational Structure and Control 11 Strategic Leadership © 2007 Prof. Dr. Bernd Venohr 2 Agenda Introduction to Strategy 4 External Environment - General environment analysis - Industry analysis - Summary and Outlook next Session © 2007 Prof. Dr. Bernd Venohr 3 Where are we today? Introduction to Strategy 1 Course Overview Strategy Concept 2 Economics of Strategy 3 Business Strategy 4 External Environment Shareholder Value Corporate Strategy 7 8 Diversification Global Strategy 5 Internal Environment 6 Competitive Positioning Mergers & Acquisitions 9 Strategy Process 10 Organizational Structure and Control 11 Leadership © 2007 Prof. Dr. Bernd Venohr Strategic 4 General purpose of external analysis Identify Opportunities: conditions that may help firm achieve strategic competitiveness Threats: hinders or constrains firm’s pursuit of strategic competitiveness Two types of environment Macro environment Micro environment (industry) Source: Robert M. Grant...
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...1990s, after the major works published by Wernerfelt, B. (“The Resource-Based View of the Firm”), Prahalad and Hamel (“The Core Competence of The Corporation”), Barney, J. (“Firm resources and sustained competitive advantage”) and others. The supporters of this view argue that organizations should look inside the company to find the sources of competitive advantage instead of looking at competitive environment for it. The following model explains RBV and emphasizes the key points of it. _ Improve your management style, hire a business speaker According to RBV proponents, it is much more feasible to exploit external opportunities using existing resources in a new way rather than trying to acquire new skills for each different opportunity. In RBV model, resources are given the major role in helping companies to achieve higher organizational performance. There are two types of resources: tangible and intangible. Tangible assets are physical things. Land, buildings, machinery, equipment and capital – all these assets are tangible. Physical resources can easily be bought in the market so they confer little advantage to the companies in the long run because rivals can soon acquire the identical assets. Intangible assets are everything else that has no physical presence but can still be owned by the company. Brand reputation, trademarks, intellectual property are all intangible assets. Unlike physical resources, brand reputation is built over a long time and is something that...
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...company of the Toyota had a bad year in 2010. They had plenty of manufacturing problems in different countries around the world. So the company needs to recall lots of cars. The incident brought to Toyota big losses. Porter’s Five Forces Perspective and PEST analysis are from different area. Porter’s Five Forces Perspective is used for the analysis of competitive strategy, and can effectively analysis customs of the competitive environment. PEST analysis is a macro-environment analysis. Its’ macro-forces is refers to the impact on all industries and enterprises. Its’ macro-environment can be focus on various situations. The first part is focusing on these two theories that using I chosen the company of Toyota as an example to overview and critique these two theories. Then compare and contrast these two theories. At last, conclusion this report and given some advises for these two theories. 2. Overview and Critique of theory 1 2.1 Overview the Porter Five Forces Perspective Porter five forces perspective has also known as Porter’s five competitive model. This model was first used by Michael Porter (Porter) made. This model was published in 1979 on the "Harvard Business Review" entitled "How to build competitive strategy” and the same mean is “How Competitive Forces Shape Strategy”. Then later in his published "Competitive Strategy" has in the further development and refinement of this model. He recognized that...
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