FINE 2000 Lecture Notes - Lecture 8: Technological Change, Strategic Management, Allocative Efficiency
Document Summary
Creates opportunities for new products and threats for old products. Chapter 2 - evaluating a firm"s external environment (pg 26 - 47) Understanding threats and opportunities brings you one step closer to choosing and implementing a good strategy. General environment - consists of broad trends in the context within which a firm operates that can have an impact on a firm"s strategic choices. The general environment consists of 6 interrelated elements: Demographics - the distribution of individuals in a society in terms of age, sex, marital status, income ethnicity, and other personal attributes that may influence buying patterns. E. g. hispanic population growth that proctor and gamble took advantage of. Culture - the values, beliefs, and norms that guide behavior (right vs wrong) in a society. Economic climate - overall health of the economic systems within which a firm operates. Recession - when activity in an economy is relatively low. Depression - a severe recession that lasts for several years.
