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Module 2: Understanding the external environment - Coggle Diagram
Module 2: Understanding the external environment
2.1 Understanding the external environment
Industry
Market
External environment
Role of the CPA in analysis
External environment analysis - analysing an industry
Gathering data for industry external analysis
Challenges:
Business intelligence (BI)
Big Data
2.2 Defining the industry for analysis
Step 1. Industry definition
Step 2. Industry Value Chain
Globalisation
Offshoring
Step 3. Industry segmentation
Break industry down into segments
Industry Life Cycle
start-up, growth, maturity, Shake-out, Decline or Renewal
Disrupting the Industry Life Cycle
2.3 Remote Environment Analysis - Growth
Remote Environment
Remote Environment analysis process
Long Term Growth Rate time frames (depends on industry):
Industry's average growth rate
Likelihood of disruptive technologies impacting the industry
STEEPLE (growth related)
Summarising the Remote Environment Analysis
2.4 Industry environment analysis - Industry profitability
Porter's Five Forces
(profit related)
Drawing Conclusions About Industry Profitability
2.5 Understanding customers and markets
Market Segmentation
Segment criteria
Homogenous members
Heterogeneous in other segments
Substantial
Identifiable
Responsive
Segmentation approaches
Demographic
Psychographic
Behavioural
Distribution
Geographic
2.6 Competition in the industry
Strategic Competition
Natural Competition
Strategic competition
Basis of Competition
Industry Key Success Factors
Competitive position
Identifying, Assessing Competitors
Need to understand competitor threat by asking following questions
2.7 Implications for leadership and management
Responding to change