capt 3 mod.
-
Upload
tatiana-bonilla-prado -
Category
Documents
-
view
239 -
download
0
Transcript of capt 3 mod.
-
8/13/2019 capt 3 mod.
1/29
1 2005 Prentice Hall
The Business Environment
External environment: a set of forces and conditionsoutside the organization that can influence itsperformance Task environment: forces that have a high potential of
affecting the organization on a immediate basis
General environment: forces that typically influence theorganizations external task environment and through them,
the organization itself
Internal environment: key factors and forces insidethe organization affecting its operation
-
8/13/2019 capt 3 mod.
2/29
2 2005 Prentice Hall
Organization Environment
External Environment General Environment
Adapted from Exhibit 3.1: Organization Environment
GeneralEnvironment
Political-Legal
-
8/13/2019 capt 3 mod.
3/29
3 2005 Prentice Hall
GeneralEnvironment
Organization Environment
External Environment General Environment
Task
Environment
Political-Legal
Competitors
Strategic Partners
Task Environment
Adapted from Exhibit 3.1: Organization Environment
-
8/13/2019 capt 3 mod.
4/29
4 2005 Prentice Hall
Organization Environment
External Environment General Environment
Task
Environment
Political-Legal
Competitors
Strategic Partners
Internal
Environment
OwnersBoard of Directors
Management
Employees
Culture
Task Environment
Internal Environment
Adapted from Exhibit 3.1: Organization Environment
-
8/13/2019 capt 3 mod.
5/29
5 2005 Prentice Hall
General Environment
Sociocultural forces Demographics
Values
Technology forces Product technological changes
Process technological changes
Economic forces Current economic conditions
Economic cycles
Structural changes
General
Environment
Political-Legal
-
8/13/2019 capt 3 mod.
6/29
6 2005 Prentice Hall
Sociocultural Factors and
Values
-
8/13/2019 capt 3 mod.
7/29
7 2005 Prentice Hall
Good
economic
conditions
Poor
economicconditions
Time
Economic Cycles
Adapted from Exhibit 3.2: Overall Economic Cycles and Industry Cycles
-
8/13/2019 capt 3 mod.
8/29
8 2005 Prentice Hall
General Environment
Political and legal forces Laws and regulations
Government spendingGlobal forces
Impact on and interaction with the otherforces
Institutional forces
Physical forces
General
Environment
Political-Legal
-
8/13/2019 capt 3 mod.
9/29
9 2005 Prentice Hall
Sociocultural
General Environment of
Coca-Cola
Adapted from Exhibit 3.3: Description of the General Environment of Coca-Cola
Environmental Factor
Baby boomers drinking less soft drinks asthey age
US population growth is slowing and muchof the growth comes from immigrants whogenerally drink less soft drinks
Description
Demographics
Values Baby boomers drinking less soft drinks as
they age US population growth is slowing and much
of the growth comes from immigrants whogenerally drink less soft drinks
-
8/13/2019 capt 3 mod.
10/29
10 2005 Prentice Hall
Technological
General Environment of
Coca-ColaEnvironmental Factor
New canning technology makes using
recycled aluminum easier and cheaper
Internet opens up a new means of running
promotion contests and activities
Description
Economic Slow economy reduces per personconsumption due to fewer social occasionsat which soft drinks might be served
Like end of economic downturn andprospects of economic recovery
Stricter liability for illness caused bybeverage contamination
Adapted from Exhibit 3.3: Description of the General Environment of Coca-Cola
-
8/13/2019 capt 3 mod.
11/29
11 2005 Prentice Hall
Global
The General Environment of
Coca-ColaEnvironmental Factor
Gradual increase in acceptance ofcarbonated soft drinks in other countriessuch as India and China
Widely available electricity and increasedability to afford refrigerators in emergingcountries and economies
Description
Adapted from Exhibit 3.3: Description of the General Environment of Coca-Cola
-
8/13/2019 capt 3 mod.
12/29
12 2005 Prentice Hall
The General Environment of
Coca-Cola
Adapted from Exhibit 3.4: The General Environment of Coca-Cola
Sociocultural
Baby boomers drinking less
Immigrants drinking less
Concern about recycling
Concerns about health
Technological
New recycle-friendly canning
technology
New promotion opportunities
via the Internet
Political-Legal
Increased health standards
for bottling
Stricter liability legislation
Global
Increase in acceptance of
carbonated drinks in India
and China
Easier consumer access to
refrigeration
Economic
Slow economic growth
Prospect of economic
recovery
Coca-Cola
Sociocultural
Technological
Political-LegalGlobal
Economic
-
8/13/2019 capt 3 mod.
13/29
13 2005 Prentice Hall
Task Environment
Organizations most immediateexternal environment
Consists of Competitors
Customers
Suppliers
Task
Environment
Competitors
Strategic Partners
Strategic partners
Labor
Regulators
Typically largest influence on the organization Managers must understand the fit between the
organization and its task environment
-
8/13/2019 capt 3 mod.
14/29
14 2005 Prentice Hall
Lower
Profits
Higher
Profits
Profits and Industry Forces
Few competitors
Quality-based
competition
High entry barriers Few new entrants
Many customers
Fragmented
customers
Many suppliers
Many competitors
Price-based
competition
Low entry barriers Many new entrants
Many substitutes
Few customers
United customers
Few suppliers
Adapted from Exhibit 3.5: Profits and Industry Forces
-
8/13/2019 capt 3 mod.
15/29
15 2005 Prentice Hall
Task
Environment
Competitors
Strategic Partners
Task Environment:
How big and strong are yourcompetitors?
What are your competitors weaknesses?What is the nature of competition or
rivalry in your industry?
The Nature of Competition
-
8/13/2019 capt 3 mod.
16/29
16 2005 Prentice Hall
Task Environment:
New entrants increase competition
Increased competition leads to lower
profitsMore choices for customers causes
companies to increase value to
customers Entry barriers keep new entrants out
New EntrantsPotential Competitors
-
8/13/2019 capt 3 mod.
17/29
17 2005 Prentice Hall
Task Environment:
To what extent can alternativeproducts or services can
substitute for existing productor service
The fewer the available substitutes, the
greater the profits
Substitutes
Task
Environment
Competitors
Strategic Partners
-
8/13/2019 capt 3 mod.
18/29
18 2005 Prentice Hall
Task Environment:
When there are fewer andunited customers, they have
more power to demand Lower prices
Customized products or services
Attractive financing terms from producers These demands reduce profits
Customers
Task
Environment
Competitors
Strategic Partners
-
8/13/2019 capt 3 mod.
19/29
19 2005 Prentice Hall
Task Environment:
Strategic partners work closelywith a firm to pursue mutually
beneficial goals Limited engagements
Joint ventures
Sharing of equity interest
Strategic Partners
Task
Environment
Competitors
Strategic Partners
-
8/13/2019 capt 3 mod.
20/29
20 2005 Prentice Hall
Task Environment:
The balance between supply anddemand for types of workers significantly
affects a firms performanceWhen demand exceeds supply, the
imbalance can lead to high labor costs
Labor unions can exert pressure onmanagers to increase wages and offer othercostly benefits, decreasing performance
Labor
-
8/13/2019 capt 3 mod.
21/29
21 2005 Prentice Hall
Task Environment:
Regulators consist of bothregulatory agencies and
interest groupsRegulators can influence and sometimes
dictate organizational actions
Regulators
Task
Environment
Competitors
Strategic Partners
-
8/13/2019 capt 3 mod.
22/29
22 2005 Prentice Hall
Competitors
Task Environment of JetBlue
Task Environmental
Factor
Primarily price-based, hurting performance
Many established and big players
Description
Rivalry
New Entrants $35 million start-up costs, frequent failuresdiscourages new entrants
Substitutes $ Video conferencing may substitute for
face-to-face (travel) business meetingsCustomers Business travelers who want convenience
Leisure travelers who want low price
Adapted from Exhibit 3.6: Description of the Task Environment of JetBlue
-
8/13/2019 capt 3 mod.
23/29
-
8/13/2019 capt 3 mod.
24/29
24 2005 Prentice Hall
Task Environment of JetBlue
Competitors
Adapted from Exhibit 3.7: The Task Environment of JetBlue
Competitors
Rivalry: Price
New Entrants: Few
Substitutes: Video
conferencing
Customers
Business travelers
Leisure Travelers
Suppliers
Planes: Airbus
Jet Fuel: many suppliers
such as Exxon Mobil
Labor
No union representation
Ample supply of pilots and
flight attendants
Regulators
FAA
Airport Authorities
Strategic
Partners
No airline partners
Initial partnership with
satellite TV provider
Suppliers
LaborRegulators
Strategic partners
Customers
JetBlue
-
8/13/2019 capt 3 mod.
25/29
25 2005 Prentice Hall
The Internal Environment
Owners
Single owner can determine
objectives and distribution of profitsDiversified set of shareholders have more
difficulty agreeing on objectives and profits
Board of DirectorsSet of individuals elected by shareholders of
the company to represent their interests
Internal
EnvironmentOwners
Board of Directors
Management
Employees
Culture
-
8/13/2019 capt 3 mod.
26/29
26 2005 Prentice Hall
The Internal Environment
Employees
Demographics
Values
Culture
Assumptions
ValuesBeliefs
Internal
EnvironmentOwners
Board of Directors
Management
Employees
Culture
-
8/13/2019 capt 3 mod.
27/29
27 2005 Prentice Hall
Environmental Scanning &
Response
Know what to scan
Have a plan of how to scan
Gain advantage over competitorsBe superior in analyzing publicly available
information and anticipating how it relates to
your job, company, and industryObtain information from nonpublic sources
-
8/13/2019 capt 3 mod.
28/29
28 2005 Prentice Hall
What type of
information do Ineed?
Define
Environmental Scanning
What information
is relevant?
Recognition
What are the
potential and mostimportant issues?
Analyze
What impact couldthis have and whatis the response?
Respond
Adapted from Exhibit 3.8: Environmental Scanning
-
8/13/2019 capt 3 mod.
29/29
29 2005 Prentice Hall
Responding Effectively to
Changing Environments
Direct influence
Strategic response
Organization agility
Information management