BU111 Study Guide - Customer Switching, Price Ceiling, Switching Barriers
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BU111 Full Course Notes
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Document Summary
The internal and external parts are linked by strategy. A tool used to assess whether or not a strategy makes sense and helps to identify which variables to consider. Principle logic = consistency or alignment, examples ikea: stylish furniture, p&g: new brands. Environment risk when environment doesn t match your strategy. 1st task is to investigate the relationship between external environment & strategy, assess forces at work and their linkage. External analysis involves: process of scanning and evaluating the external environment, how managers determine opportunities (positive external trends or changes) and threats (negative external trends or changes, firms face multiple environments: general environment (affects all businesses) & Specific environment (affects industry participants: general environment: pest model identifies general trends and changes, specific environment: porter s 5 forces analyzes 5 important sources of competitive pressure and intensity; predicts profitability of industry. 3 most important issues facing canadian business: canadian dollar, skilled labour shortage, national/physical environment (green)
