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Chapter 2, elements, Environmental Uncertainty, competitive environment,…
Chapter 2
elements
the nature of the competitors, potential new
threats, threat of substitutes, opportunities from
complements, and relationships with suppliers and
customers.
Environmental Uncertainty
competitive environment
macroenvironment
Analyzing the impact of these forces on a company can help identify potential risks and opportunities.
One approach to gain a competitive advantage is through effective supply chain management.
Attractive environments have rapid industry growth, limited competitors, distinctive products, a small number of potential entrants, barriers to entry, few replacements, a large number of suppliers, and a large number of customers.
organizations
are open systems that are affected by, their external environments
receive financial, human, material,
and information resources from the environment;
transform those resources into finished goods and
services
then send those outputs back into the
environment to meet market needs.
is the economic, legal and political, technological, demographic, social, and natural
environment forces that influence strategic decisions
the amount of
control a firm can exert on external forces
Macroenvironmental forces such as the economy
and social trends are much less controllable
forces in the competitive environment such as suppliers and customers
Changing the competitive landscape through domain selection, diversification, and mergers is an example of strategic maneuvering.
Cooperative strategies, such as contracting, cooptation, and coalition building
better able to handle environmental change by decentralizing authority, buffering or smoothing, and establishing flexible processes