BADM*4000 Chapter Notes - Chapter 3: Gross Domestic Product, Customer Intelligence, Product Differentiation
17 Nov 2017
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Chapter 3: opportunities, threats, industry competition & competitor analysis (external) The external environment is divided into 3 categories: the general environment, the industry environment, competitive environment/competitor analysis. The general environment: composed of dimensions in the broader society that influence on industry and the firms within it, understanding that opportunities help a company, threats hinder a company. Demographic segment: population size, age structure, geographic distribution, ethnic mix, income distribution, immigration. The economic environment: refers to the nature and direction of the economy in which the firm competes or may compete, e. g. Inflation & interest rates, business savings rates, personal savings rate, trade deficits or surpluses, budget deficits or surpluses, gross domestic product (gdp) Competition laws, labor laws, taxation laws, education philosophies & policy, de- regulation philosophy, government economy involvement/ownership philosophies. Sociocultural segment: concerned with societies attitudes and cultural values, because attitudes drive demographic, sociocultural, etc, e. g.
