Scribd Logo
Upload

Welcome to Scribd!

  • 34 views

    The External Environment

    Uploaded by

    Anggah Khan
    The document discusses the external environment of a firm, including the remote environment, industry environment, and operating environment. The remote environment includes economic, social, political, technological, and ecological factors. The industry environment analyzes the threat of new entrants, power of suppliers and buyers, availability of substitutes, and level of competition. The operating environment examines competitors, customers, suppliers, creditors, and human resources considerations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    The External Environment

    Uploaded by

    Anggah Khan
    34 views12 pages
    The document discusses the external environment of a firm, including the remote environment, industry environment, and operating environment. The remote environment includes economic, social, political, technological, and ecological factors. The industry environment analyzes the threat of new entrants, power of suppliers and buyers, availability of substitutes, and level of competition. The operating environment examines competitors, customers, suppliers, creditors, and human resources considerations.

    Original Description:

    manajemen strategik

    Original Title

    Chap 03

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses the external environment of a firm, including the remote environment, industry environment, and operating environment. The remote environment includes economic, social, political, technological, and ecological factors. The industry environment analyzes the threat of new entrants, power of suppliers and buyers, availability of substitutes, and level of competition. The operating environment examines competitors, customers, suppliers, creditors, and human resources considerations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    34 views12 pages

    The External Environment

    Uploaded by

    Anggah Khan
    The document discusses the external environment of a firm, including the remote environment, industry environment, and operating environment. The remote environment includes economic, social, political, technological, and ecological factors. The industry environment analyzes the threat of new entrants, power of suppliers and buyers, availability of substitutes, and level of competition. The operating environment examines competitors, customers, suppliers, creditors, and human resources considerations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 12

    THE EXTERNAL ENVIRONMENT

    THE FIRMS EXTERNAL ENVIRONMENT


    Remote Environment ( Global & Domestic )
    Economic, Social, Political, Technological, and Ecological

    Industry Environment ( Global & Domestic )


    Entry barrier, Supplier power, Buyer power, Substitute availability, and Competitive rivalry

    Operating Environment ( Global & Domestic )


    Competitors, Creditors, Customers, Labor, Suppliers

    THE FIRM

    REMOTE ENVIRONMENT
    ECONOMIC FACTOR
    Inflation rate, availability of credit, interest rate, the growth of GNP, disposable income, propensity to consume.
    The belief, values, attitudes, opinions, lifestyle of people as developed from cultural, ecological, demographic, religious, educational, and ethnic conditioning. Direction and stability of political, fair trade decisions, antitrust laws, tax programs, minimum wage legislation, pollution and price policies, administrative jawboning.

    SOCIAL FACTOR

    POLITICAL FACTOR

    REMOTE ENVIRONMENT ( Continue)


    TECHNOLOGICAL
    Technological changes that might influence an industry. Creative technological adaptation can suggest possibilities for new product, improvement existing product, manufacturing and marketing techniques.
    Air pollution, water pollution, land pollution is the most important factors and is often the mutual relationship between business and the ecology.

    ECOLOGICAL

    FORCES DRIVING INDUSTRY COMPETITION


    BY MICHAEL E. PORTER

    Potential Entrants
    Threat of new entrants

    Bargaining power of suppliers

    Industry competitors Buyers Rivalry among existing firms


    Bargaining power of buyers

    Suppliers

    Threat of substitute product & service

    Substitutes

    INDUSTRY ENVIRONMENT
    THREAT OF ENTRY
    6 majors sources: Economies of scale, product differentiation, capital requirement, cost disadvantages independent of size, access to distribution channels, government policy.
    Few companies, unique product or switching costs, not contend with other product, the industry is unimportant customer of the supplier group.

    POWERFUL SUPPLIERS

    INDUSTRY ENVIRONMENT (Continue)


    POWERFUL BUYERS
    Purchase in large volumes, purchase standard or undifferentiated product, products purchased form a component of buyers products, earn low profit, the industrys product is unimportant the quality of buyers product, the industrys product doesnt save the buyer money.
    By placing a ceiling on the prices it can charge, substitute products or services limit the potential of an industry.

    SUBSTITUTE PRODUCTS & SERVICES

    INDUSTRY ENVIRONMENT (Continue)


    JOCKEYING FOR POSITION
    Rivalry among existing competitors is related to the presence of a number of factors:

    Competitors are numerous or are roughly equal in size and power. Industry growth is slow. The product and service lacks differentiation or switching costs. Fixed costs are high or the product is perishable. Capacity normally is increased in large increments. Exit barriers are high. The rivals are diverse (various) in strategies, origins, and personalities.

    OPERATING ENVIRONMENT
    COMPETITIVE POSITION
    The common criteria of competitors profile:

    Market share Wideness of product line Effectiveness of sales distribution Proprietary (pemilik) and key-account advantages Price competitiveness Advertising and promotion effectiveness Location and age of facility Capacity and productivity Experience Raw material costs

    OPERATING ENVIRONMENT (Continue)


    COMPETITIVE POSITION

    Financial position Relative product quality R & D advantages-position Caliber of personnel General image

    CUSTOMER PROFILES

    Customer segmentation based on:


    Geographic (Letak) Demographic (Penduduk) Psychographic (Kejiwaan) Buyer behavior

    OPERATING ENVIRONMENT (Continue)


    SUPPLIERS
    Questions should be addressed: Are the price competitive? Are there any quantity discount? How costly are the shipping charges? How are the production standards? Are the suppliers abilities, reputations, and services competitive? Are the suppliers reciprocally (timbal balik) dependent on the firm?

    OPERATING ENVIRONMENT (Continue)


    CREDITORS
    Questions should be addressed: Do the creditors fairly? Do the creditor perceive the firm as having an acceptable record of past payment? A strong working capital position? Little or no leverage? Are the creditors loan terms compatible with the firms profitability objectives? Are the creditors able to extend the necessary lines of credit?

    HUMAN RESOURCES:
    NATURE OF THE LABOR MARKET

    Reputation Employment rates Availability

    You might also like