MGMT 101 Chapter Notes - Chapter N/A: Tort Reform, Genetic Engineering, Swot Analysis
Document Summary
Week 3 analyzing the external environment of the firm. Strategies must be responsive to the external environment. One tool for analyzing trends: forecasting: environmental scanning and environmental monitoring. Managers must collect and disseminate competitor intelligence: minimize present and future threats, exploit opportunities. Basic tool of strategy analysis: swot analysis (strengths, weaknesses, opportunities, and threats) Two frameworks for analyzing external environment: general environment and competitive environment: general: demographic, sociocultural, political/legal, technological, economic, and global, competitive: five factors (cid:2) (cid:2) (cid:2) (cid:2) Environmental scanning: surveying external environment to predict changes. Alerts organization to critical trends and events: combination of knowing your business/customer and keeping an eye on what"s happening around you, leading firms can be a good indicator of emerging trends, how to spot hot trends. Pay attention to publications and follow industries that are rapidly evolving. Environmental monitoring: tracks evolution of environmental trends, sequences of events, or streams of activities.
