Please enable JavaScript.
Coggle requires JavaScript to display documents.
Gathering and Analyzing Internal/ External Information (2. Analyzing the…
Gathering and Analyzing Internal/ External Information
1. Analyzing the External Environment
PESTEL Analysis
political factors
: an economy's political, governmental, or institutional environment.
economic conditions
: economic conditions of an area such as GDP, employment levels, family or disposable incomes, currency rate, trend, etc.
sociocultural forces
: data about demographics, values and preferences, etc.
technological factors
: identify emerging and speculative technology.
environmental forces
: include natural events and trends
legal and regulatory factors
: law and regulations that are enacted as a result of political attitudes.
five forces framework
define: a method to analyze competitive pressures in a market and assess the strength and importance of each of those pressures
assumption: an industry is the composite of competitive pressures or forces operating in five areas of the overall market
rivalry among competitive sellers
level of competitive intensity
competitive advantages
potential new entrants to the market
substitute products from other industries
bargaining power of suppliers and buyers/ customers
industry attractiveness:
assessed by the number and relative strength of these forces
other industry information
competitor analysis
:
an analysis of a competitor that includes its strategies, capabilities, prices, and costs.
opportunity search, trend analysis, benchmarking, etc.
2. Analyzing the Internal Environment
Resource and Capability Analysis
define: identify all of an organization's resources and capabilities and then determines if they offer sustainable competitive advantage.
Step1
: identify resources
tangible resources: physical, financial, technological, organizational
intangible resources: human assets and intellectual capital, brands and reputation, relationships, culture and the compensation system
Step2
: identify capabilities
tangible and intangible resources
Step3
: VRIN Test
define: to analyze the sustainable competitive advantages
(valuable, rare, inimitable, non-substitutable)
SWOT Analysis
strengths
: include the resources and capabilities identified in the resource and capability analysis; organization's core process and competencies.
weaknesses
: an organization does poorly or things it cannot do at all; insufficient resources.
opportunity
: conditions in the external environment that could convey a competitive advantage to the organization
threat
: environmental factors that will damage the organization's current competitiveness or profitability
Value Chain Analysis
define: a way of understanding where costs occur within an organization to a supply chain and how one activity within the chain can affect the costs of another.
types: primary and support.
primary activities: create value and will vary in different organization.
support activities: make the primary activities possible.
Product Life Cycle Analysis
introduction phase
: business invest a large amount of resources; incur a high degree of risk
involve: product positioning, make-to-order, engineer-to-order
growth phase
: the amount of revenue the product produces increase; product design stabilize; unit cost decrease and profit increase.
involve: brand identity, assemble-to-order, make-to-order
maturity phase
: functional product; low profit margin and a predictable demand; intensifying competition; competitive tactics increase
involve: innovation, reengineering process, new technology introduction
decline phase
: leave market; maintain product with minimal investment; replacement product.
involve: rollover strategy (solo-product roll/ dual-product roll);
product life cycle and strategy
products with shorter life cycle must maximize their ability to generate revenue. (quick product design--> quality process--> effective operation)
life cycle position can affect decisions about investments in operational capacity and inventory and where production occurs and who performa production. (increase capacity, outsource, offshore, etc.)
operations performance objectives often change as products age. (dependable and fast operations, cost-effective operation, etc.)
