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transcript
8/11/2019 Strategic Mgmt - Session 2 - Environment Scanning.pdf
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STRATEGIC MANAGEMENT
Lng Thu HLng Thu H
Lng Thu H, MBA, PhD Candidate
haluongthu@yahoo.com 0903.001.888
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Lng Thu HLng Thu H
ENVIRONMENTAL SCANNING
UNIT 2
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CONTENT
2.1. Business environment analysis
2.2. External environment scanning (Presentation)
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2.3. Internal environment scanning (Presentation)
2.4. SWOT matrix
2.5. Business strategy in global context
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1.1. BUSINESS ENVIRONMENT
ANALYSIS
Macro Environment
Industry Environment
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The Organization
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The Strategic-Management model
Measure
Implement
Strategy MarketinImplementGenerateDevelop
Perform
External
Audit
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and
Evaluate
Performance
Finance,
Accounting,
R&D,
and
MIS Issue
Management
Issue
and
Select
Strategy
and
Mision
Statements
Long-term
Objectives
PerformInternal
Audit
Strategy
Fomulation
Strategy
Implementation
Strategy
Evaluation
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Analysis tools
The organization: Different approaches
Strategic group: MBA programe
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Industry environment: Five Forces Model
Macro environment: PESTEL Analysis
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1.2. EXTERNAL ENVIRONMENT
SCANNING
Level of external environment:
Macro environment (National environment)
Micro environment (Industry environment)
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Macro environment: PESTEL Analysis
Industry environemnt: Five Forces Model(Competitive analysis)
=> Os and Ts of SWOT7
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1.2.1. Political factors
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1.2.3. Social factors
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1.2.4. Technological factors
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1.2.5. Environmental factors
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1.2.6. Legal factors
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INDUSTRY ENVIRONMENT
Five Forces Model:
Rivalry among competing firms
Potential entry of new competitors
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Potential development of substitute products
Bargaining power of suppliers
Bargaining power of consumers
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Five Forces Model M.Porter
Threat of New Entrants (and Entry Barriers)
Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation
Proprietary products
Industry value chain
from raw materials
and other inputs, to
channel, to end
consumer
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Source: Adapted from M.E. Porter, Competitive
Strategy: Techniques for Analyzing
Industries and Competitors , (New York: Free
Press, 1980)
Buyer Power (Channel and End Consumer)
Buyer concentration Importance of volume to customers Differentiation of inputs Impact of outputs on cost of differentiation Switching costs of customers Presence of substitute products Threat of backward integration
Costs relative to total purchases inindustry
Supplier Power
Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration
Cost relative to total purchases in industry
Threat of Substitutes
Switching costs Buyer inclination to substitute Price-performance tradeoff of substitutes Varity of substitutes Necessity of product or service
Degree of Rivalry
Exit barriers Industry concentration Fixed costs/value added Industry growth Intermittent overcapacity Product differences Switching costs
Brand identity Diversity of rivals
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Degree of Rivalry
Threat of New Entrants (and Entry Barriers)
Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation Proprietary products
Industry value chain
from raw
materials and other
inputs, to channel,
to end consumer
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Source: Adapted from M.E. Porter, Competitive
Strategy: Techniques for Analyzing Industries
and Competitors , (New York: Free Press, 1980)
Buyer Power (Channel and End Consumer)
Buyer concentration Importance of volume to customers Differentiation of inputs Impact of outputs on cost of differentiation Switching costs of customers Presence of substitute products Threat of backward integration Costs relative to total purchases in industry
Supplier Power
Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry
Threat of Substitutes
Switching costs
Buyer inclination to substitute Price-performance tradeoff of substitutes Varity of substitutes Necessity of product or service
Degree of Rivalry
Exit barriers Industry concentration Fixed costs/value added Industry growth Intermittent overcapacity
Product differences Switching costs Brand identity Diversity of rivals
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Supplier Power
Supplier Power
Threat of New Entrants (and Entry Barriers)
Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation Proprietary products
Industry value chain
from raw
materials and other
inputs, to channel,
to end consumer
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Source: Adapted from M.E. Porter,
Competitive Strategy:
Techniques for Analyzing
Industries and Competitors ,
(New York: Free Press, 1980)
Buyer Power (Channel and End Consumer)
Buyer concentration
Importance of volume to customers Differentiation of inputs Impact of outputs on cost of diff-tion
Switching costs of customers Presence of substitute products Threat of backward integration
Costs relative to total purchases in industry
Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or diff-tion Switching costs of firms in the industry Presence of substitute inputs
Threat of forward integration Cost relative to total purchases in
industry
Threat of Substitutes
Switching costs Buyer inclination to substitute Price-performance tradeoff of
substitutes
Varity of substitutes Necessity of product or service
Degree of Rivalry
Exit barriers Industry concentration
Fixed costs/value added Industry growth
Intermittent overcapacity
Product differences
Switching costs Brand identity
Diversity of rivals Corporate stakes
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Threat of New Entrants
Threat of New Entrants (and Entry Barriers)
Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale
Capital requirements
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Source: Adapted from M.E. Porter, Competitive
Strategy: Techniques for Analyzing Industries
and Competitors , (New York: Free Press, 1980)
Buyer Power (Channel and End Consumer)
Buyer concentration Importance of volume to customers Differentiation of inputs Impact of outputs on cost of differentiation Switching costs of customers Presence of substitute products Threat of backward integration Costs relative to total purchases in industry
Supplier Power
Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry
Switching costs Access to distribution Expected retaliation Proprietary products
Threat of Substitutes
Switching costs Buyer inclination to substitute Price-performance tradeoff of
substitutes
Varity of substitutes Necessity of product or service
Degree of Rivalry
Exit barriers Industry concentration Fixed costs/value added Industry growth
Intermittent overcapacity
Product differences
Switching costs Brand identity
Diversity of rivals
Industry value chain
from raw
materials and other
inputs, to channel,
to end consumer
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Threats of Substitutes
Buyer Power (Channel and End Consumer)
Buyer concentration
Supplier Power
Supplier concentration
Threat of New Entrants (and Entry Barriers)
Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation Proprietary products
Degree of Rivalry Exit barriers
Industry value chain
from raw
materials and other
inputs, to channel,to end consumer
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Source: Adapted from M.E. Porter, Competitive
Strategy: Techniques for Analyzing
Industries and Competitors , (New York:Free Press, 1980)
Importance of volume to customers Differentiation of inputs Impact of outputs on cost of differentiation Switching costs of customers Presence of substitute products Threat of backward integration Costs relative to total purchases in industry
Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry
Threat of Substitutes
Switching costs Buyer inclination to substitute Price-performance tradeoff of
substitutes
Varity of substitutes Necessity of product or service
Industry concentration
Fixed costs/value added
Industry growth Intermittent overcapacity
Product differences Switching costs Brand identity
Diversity of rivals
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Os-Ts of SWOT Matrix
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Os : List the firms key external Opportunities.
Ts : List the firms key external Threats. 22
2 3 INTERNAL ENVIRONMENT
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2.3. INTERNAL ENVIRONMENT
SCANNING
Management-function approach
Management-area approach
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Resource-based approach
Value chain approach
=> Ss and Ws of SWOT
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2.3.1 Management-function approach
Abillity of Planning
Ability of Organizing
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Ability of Directing
Ability of Co-ordinating
Ability of Controlling
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2.3.2. Management-area approach
Materials management
Finace management
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Marketing mangement
Personnel management
MIS management
Official and legal
issues management
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2.3.3. Resources-based approach
Human resource
Finance resource
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Tangible-property resource
Information resource
Intellectual-property resource
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Primary activities
Inbound logistics (receiving, warehousing, and inventory):
Control of input materials.
Operations (machining, assembling, and all other activities):
transform inputs into the final product.
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activities): required to get the finished product to the customer
Marketing and sales (channel selection, advertising, pricing,
and other activities): associated with getting buyers to
purchase the product.
Service (customer support, repair services, and other
activities): maintain and enhance the products value to the
customer.
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Ss-Ws of SWOT Matrix
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Os : List the firms key internal Strengths.
Ts : List the firms key internal Weakness.
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2.4. SWOT MATRIX
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STRENGTHS S
STRENGTHS S WEAKNESSES W
WEAKNESSES W
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THE SWOT MATRIX
FOR
A CRUISE LINE COMPANY
THE SWOT MATRIX
FOR
A CRUISE LINE COMPANY
1. Hold 34% market share
2. Largest fleet of ships
3. Six different cruise lines
4. Innovator in cruise travel industry
5. Largest variety of ships
6. Building largest cruise ship7. High brand recognition
8. Headquatered in Tampa
9. Internet friendly (online booking 30%)
1. Hold 34% market share
2. Largest fleet of ships
3. Six different cruise lines
4. Innovator in cruise travel industry
5. Largest variety of ships
6. Building largest cruise ship7. High brand recognition
8. Headquatered in Tampa
9. Internet friendly (online booking 30%)
1. Major loss in affiliated
operation
2. Increased debt from
building new ships
3. Not serving Asian
market
4. ROI ratio is 4%
1. Major loss in affiliated
operation
2. Increased debt from
building new ships
3. Not serving Asian
market
4. ROI ratio is 4%
OPPOTUNITIES O
1. Air travel has decreased (9/11)
2. Asian market not being served
3. Possible accquisition of Princess Cruise
OPPOTUNITIES O
1. Air travel has decreased (9/11)
2. Asian market not being served
3. Possible accquisition of Princess Cruise
SO STRATEGIES
1. Increase capacity of ships to obtain
travelers from air industry (S6, O1, O3)
SO STRATEGIES
1. Increase capacity of ships to obtain
travelers from air industry (S6, O1, O3)
WO STRATEGIES
1. Begin serving Japan and
Pacific Islands (W3, O2,
WO STRATEGIES
1. Begin serving Japan and
Pacific Islands (W3, O2,
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Lines
4. New weather forecast systerm available
5. Rising demand for all-inclusive vacation
packages
6. Families have increased disposal incomes
7. Marriarate are ups=> more honeymoon
Lines
4. New weather forecast systerm available
5. Rising demand for all-inclusive vacation
packages
6. Families have increased disposal incomes
7. Marriarate are ups=> more honeymoon
2. Display the weather of vacation
locations on Web site (S9, O4)
3. Offer Trans Atlantic Cruises (S6, O4)
4. Acquire P&O Princess (S1, O3)
2. Display the weather of vacation
locations on Web site (S9, O4)
3. Offer Trans Atlantic Cruises (S6, O4)
4. Acquire P&O Princess (S1, O3)
O3, O4)
2. Use weather forcast to
alert customers of
potential storm during
their vacation (W1, O4)
O3, O4)
2. Use weather forcast to
alert customers of
potential storm during
their vacation (W1, O4)
THREATS T
1. Decreased in travel since 9/11
2. Terrorism
3. Competition within industry
4. Competition among other types of vacations
5. Economics recression
6. Chance of natural disasters
7. Increase fuel prices
8. Changing goveronment regulations
THREATS T
1. Decreased in travel since 9/11
2. Terrorism
3. Competition within industry
4. Competition among other types of vacations
5. Economics recression
6. Chance of natural disasters
7. Increase fuel prices
8. Changing goveronment regulations
ST STRATEGIES
1. Advertise ship variety, brand
recognition, and safety policies (S3,
S7, T1, T2, T5)
2. Advertise alternate vacations that
are not affected by hurricane season
(S3, T5, T7)
3. Offer discounts on Web site (S9, T6)
ST STRATEGIES
1. Advertise ship variety, brand
recognition, and safety policies (S3,
S7, T1, T2, T5)
2. Advertise alternate vacations that
are not affected by hurricane season
(S3, T5, T7)
3. Offer discounts on Web site (S9, T6)
WT STRATEGIES
1. Lower prices of cruises
during hurricane season
(W1, T6)
2. Research viability of
entering other foreign
markets (W2, W3, T8, S9)
WT STRATEGIES
1. Lower prices of cruises
during hurricane season
(W1, T6)
2. Research viability of
entering other foreign
markets (W2, W3, T8, S9)
2.5. BUSINESS STRATEGY IN
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2.5. BUSINESS STRATEGY IN
GLOBAL CONTEXT
Multinational Corporation (MNCs)
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Globalization
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B f i i i l k
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Before entering international market
Journal and patent reports
Advices from academic and research organizations
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Form partnerships
Conduct extensive researchs
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Gl b li ti
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Globalization
Process of worldwide intergration
Domestic, other individual contries, and global:
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Profitability of a firm
Industries: Different level of globalization R&D needs
Low-cost manufacturing
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