MGT 3111 Chapter : The Environment
Document Summary
Building a sustainable competitive advantage- one that is hard to copy and can. Getting the target market wrong can cause failure very quickly. Internal- controllable---poor salesman, bad machinery- can control by making changes. External- uncontrollable---whole industry is declining, prices of raw materials go up, cant ignore it, you can"t control it. *we need to be aware of what"s going on in the environment, try to find favorable trends, try to protect. *change is inevitable but we can plan ahead so we don"t suffer effects, must anticipate change. Has to sustain long term, want it to be hard to replicate. Environmental scanning- internal and external factors that affect our ability to compete: general environment- macro. Outlawed in california- trans fat; amedysis- lots of $ there. China/india- flooded with cars, bikes, donkey carts so gas prices increase there, and eventually here too: industry environment. Effects all industries, just effects them differently: competitor aka community.
