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Task Environment

In: Business and Management

Submitted By jkris
Words 269
Pages 2
Set 105 Environmental Scanning/Industry Analysis – 1

1. What external environmental variables should be scanned?
In conducting an external environmental scan, focus should be drawn to two environmental variables: • Societal environment (macro-environment) – This is the general environment in which the business organization operates. It is characterized by those variables on which the business has no control. It does not directly touch on the short run activities of the firm but can, and often do influence its long-run decisions. • Task environment (micro-environment) – This is the industry within which the business organization operates. This environment is characterized by various players and stakeholders who affect a business enterprise, and are also affected by it. 2. According to Porter, what determines the level of competitive intensity in an industry?
According to Porter, the level of competitive intensity is determined by 5 basic competitive forces namely: (1) Threat of new entrants to a market (2) Bargaining power of suppliers (3) Bargaining power of customers or buyers (4) Threat of substitute products and (5) Degree of competitive rivalry
3. What should be scanned in the task environment? There should be an analysis of relevant elements in the task environment such as: (1) Competitors (2) Suppliers (3) Regulators (4) Strategic Partners (5) Labor and (6) Customers.
4. Discuss how a development in a corporation’s societal environment can affect the corporation through its task environment.

5. How can managers identify external strategic factors?
a. Environmental uncertainty b. Issues priority matrix
c. New entrants
d. Entry barriers
e. Rivalry
f. Substitute products
g. Bargaining power of buyers and suppliers
h. Bargaining power of other...

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