Quản trị kinh doanh - Chapter 3: Assessing external environments

Chapter 3Assessing External EnvironmentsLearning ObjectivesArticulate the role of the external environment in management decisions and effectiveness.Explain the five major dimensions of an organization’s general environment.Describe the critical forces in the organization’s task environment.After studying this chapter, you should be able to:©2005 Prentice HallLearning ObjectivesDescribe the key elements of an organization’s global environment.Describe the key considerations in conducting effective environmental scanning.After studying this chapter, you should be able to:©2005 Prentice HallThe Business EnvironmentExternal environment: a set of forces and conditions outside the organization that can influence its performanceTask environment: forces that have a high potential of affecting the organization on a immediate basisGeneral environment: forces that typically influence the organization’s external task environment and through them, the organization itselfInternal environment: key factors and forces inside the organization affecting its operation©2005 Prentice HallOrganization EnvironmentExternal EnvironmentGeneral EnvironmentAdapted from Exhibit 3.1: Organization EnvironmentGeneralEnvironmentGlobalTechnologyEconomicPolitical-LegalSociocultural©2005 Prentice HallGeneralEnvironmentOrganization EnvironmentExternal EnvironmentGeneral EnvironmentTaskEnvironmentGlobalTechnologyEconomicPolitical-LegalSocioculturalCompetitorsSuppliersRegulatorsStrategic PartnersLaborCustomersTask EnvironmentAdapted from Exhibit 3.1: Organization Environment©2005 Prentice HallOrganization EnvironmentExternal EnvironmentGeneral EnvironmentTaskEnvironmentGlobalTechnologyEconomicPolitical-LegalSocioculturalCompetitorsSuppliersRegulatorsStrategic PartnersLaborCustomersInternalEnvironmentOwnersBoard of DirectorsManagementEmployeesCultureTask EnvironmentInternal EnvironmentAdapted from Exhibit 3.1: Organization Environment©2005 Prentice HallGeneral EnvironmentSociocultural forcesDemographics ValuesTechnology forcesProduct technological changesProcess technological changesEconomic forcesCurrent economic conditionsEconomic cyclesStructural changesGeneralEnvironmentGlobalTechnologyEconomicPolitical-LegalSociocultural©2005 Prentice HallGood economic conditionsPoor economic conditionsTimeEconomic CyclesAdapted from Exhibit 3.2: Overall Economic Cycles and Industry Cycles©2005 Prentice HallGeneral EnvironmentPolitical and legal forcesLaws and regulationsGovernment spendingGlobal forcesImpact on and interaction with the other forcesInstitutional forcesPhysical forcesGeneralEnvironmentGlobalTechnologyEconomicPolitical-LegalSociocultural©2005 Prentice HallSocioculturalGeneral Environment of Coca-ColaAdapted from Exhibit 3.3: Description of the General Environment of Coca-ColaEnvironmental FactorBaby boomers drinking less soft drinks as they ageUS population growth is slowing and much of the growth comes from immigrants who generally drink less soft drinksDescriptionDemographicsValuesBaby boomers drinking less soft drinks as they ageUS population growth is slowing and much of the growth comes from immigrants who generally drink less soft drinks©2005 Prentice HallTechnologicalGeneral Environment of Coca-ColaEnvironmental FactorNew “canning” technology makes using recycled aluminum easier and cheaperInternet opens up a new means of running promotion contests and activitiesDescriptionEconomicSlow economy reduces per person consumption due to fewer social occasions at which soft drinks might be servedLike end of economic downturn and prospects of economic recoveryStricter liability for illness caused by beverage contaminationAdapted from Exhibit 3.3: Description of the General Environment of Coca-Cola©2005 Prentice HallGlobalThe General Environment of Coca-ColaEnvironmental FactorGradual increase in acceptance of carbonated soft drinks in other countries such as India and ChinaWidely available electricity and increased ability to afford refrigerators in emerging countries and economiesDescriptionAdapted from Exhibit 3.3: Description of the General Environment of Coca-Cola©2005 Prentice HallThe General Environment of Coca-ColaAdapted from Exhibit 3.4: The General Environment of Coca-ColaSocioculturalBaby boomers drinking lessImmigrants drinking lessConcern about recyclingConcerns about healthTechnologicalNew recycle-friendly canning technologyNew promotion opportunities via the InternetPolitical-LegalIncreased health standards for bottlingStricter liability legislationGlobalIncrease in acceptance of carbonated drinks in India and ChinaEasier consumer access to refrigerationEconomicSlow economic growthProspect of economic recoveryCoca-ColaSocioculturalTechnologicalPolitical-LegalGlobalEconomic©2005 Prentice HallTask EnvironmentOrganization’s most immediate external environmentConsists ofCompetitorsCustomersSuppliersTaskEnvironmentCompetitorsSuppliersRegulatorsStrategic PartnersLaborCustomersStrategic partnersLaborRegulatorsTypically largest influence on the organizationManagers must understand the fit between the organization and its task environment©2005 Prentice HallLowerProfitsHigherProfitsProfits and Industry ForcesFew competitorsQuality-based competitionHigh entry barriersFew new entrantsMany customersFragmented customersMany suppliersMany competitorsPrice-based competitionLow entry barriersMany new entrantsMany substitutesFew customersUnited customersFew suppliersAdapted from Exhibit 3.5: Profits and Industry Forces©2005 Prentice HallTaskEnvironmentCompetitorsSuppliersRegulatorsStrategic PartnersLaborCustomersTask Environment: How big and strong are your competitors?What are your competitors weaknesses?What is the nature of competition or rivalry in your industry?The Nature of Competition©2005 Prentice HallTask Environment: New entrants increase competitionIncreased competition leads to lower profitsMore choices for customers causes companies to increase value to customersEntry barriers keep new entrants outNew Entrants—Potential Competitors©2005 Prentice HallTask Environment: To what extent can alternative products or services can substitute for existing product or serviceThe fewer the available substitutes, the greater the profits SubstitutesTaskEnvironmentCompetitorsSuppliersRegulatorsStrategic PartnersLaborCustomers©2005 Prentice HallTask Environment: When there are fewer and united customers, they have more power to demand Lower pricesCustomized products or servicesAttractive financing terms from producersThese demands reduce profitsCustomersTaskEnvironmentCompetitorsSuppliersRegulatorsStrategic PartnersLaborCustomers©2005 Prentice HallTask Environment: Strategic partners work closely with a firm to pursue mutually beneficial goalsLimited engagementsJoint venturesSharing of equity interestStrategic PartnersTaskEnvironmentCompetitorsSuppliersRegulatorsStrategic PartnersLaborCustomers©2005 Prentice HallTask Environment: The balance between supply and demand for types of workers significantly affects a firm’s performanceWhen demand exceeds supply, the imbalance can lead to high labor costsLabor unions can exert pressure on managers to increase wages and offer other costly benefits, decreasing performanceLabor©2005 Prentice HallTask Environment: Regulators consist of both regulatory agencies and interest groupsRegulators can influence and sometimes dictate organizational actionsRegulatorsTaskEnvironmentCompetitorsSuppliersRegulatorsStrategic PartnersLaborCustomers©2005 Prentice HallCompetitorsTask Environment of JetBlueTask Environmental FactorPrimarily price-based, hurting performanceMany established and big playersDescriptionRivalry New Entrants$35 million start-up costs, frequent failures discourages new entrantsSubstitutes$ Video conferencing may substitute for face-to-face (travel) business meetingsCustomersBusiness travelers who want convenienceLeisure travelers who want low priceAdapted from Exhibit 3.6: Description of the Task Environment of JetBlue©2005 Prentice HallTask Environment of JetBlueTask Environmental FactorAirbus supplies all of JetBlue’s planesMany jet fuel suppliersDescriptionSuppliersStrategic PartnersCurrently not a part of any airline allianceInitial partner with satellite TV providerCurrently not represented by labor unionsAmple supply of pilots and flight attendants due to significant downsizing in industryRegulatorsFAA dictates standards and regulationsAirport authorities determine access and cost of landing slots and gates at airportsAdapted from Exhibit 3.6: Description of the Task Environment of JetBlue©2005 Prentice HallTask Environment of JetBlueCompetitorsAdapted from Exhibit 3.7: The Task Environment of JetBlueCompetitorsRivalry: PriceNew Entrants: FewSubstitutes: Video conferencingCustomersBusiness travelersLeisure TravelersSuppliersPlanes: AirbusJet Fuel: many suppliers such as Exxon MobilLaborNo union representationAmple supply of pilots and flight attendantsRegulatorsFAAAirport AuthoritiesStrategicPartnersNo airline partnersInitial partnership with satellite TV providerSuppliersLaborRegulatorsStrategic partnersCustomersJetBlue©2005 Prentice HallThe Internal EnvironmentOwnersSingle owner can determine objectives and distribution of profitsDiversified set of shareholders have more difficulty agreeing on objectives and profitsBoard of DirectorsSet of individuals elected by shareholders of the company to represent their interests InternalEnvironmentOwnersBoard of DirectorsManagementEmployeesCulture©2005 Prentice HallThe Internal EnvironmentEmployeesDemographicsValuesCultureAssumptionsValuesBeliefsInternalEnvironmentOwnersBoard of DirectorsManagementEmployeesCulture©2005 Prentice HallEnvironmental Scanning & ResponseKnow what to scanHave a plan of how to scanGain advantage over competitorsBe superior in analyzing publicly available information and anticipating how it relates to your job, company, and industryObtain information from nonpublic sources ©2005 Prentice HallWhat type of information do I need?DefineEnvironmental ScanningWhat information is relevant?RecognitionWhat are the potential and most important issues?AnalyzeWhat impact could this have and what is the response?RespondAdapted from Exhibit 3.8: Environmental Scanning©2005 Prentice HallResponding Effectively to Changing EnvironmentsDirect influenceStrategic responseOrganization agilityInformation management ©2005 Prentice Hall