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Team 2 Strategic Management in Action Assessing Opportunities and Threats

Team 2 Strategic Management in Action Assessing Opportunities and Threats. Mike Leonard Christopher Sylvester Taylor Ashbaugh Robert Evans Chase Bray Jacob Speight. External Analysis. Definition- process of scanning and evaluating an organization’s external environment Opportunities

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Team 2 Strategic Management in Action Assessing Opportunities and Threats

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  1. Team 2Strategic Management in ActionAssessing Opportunities and Threats Mike Leonard Christopher Sylvester Taylor Ashbaugh Robert Evans Chase Bray Jacob Speight

  2. External Analysis • Definition- process of scanning and evaluating an organization’s external environment • Opportunities • Threats • Organization as an open system

  3. Performing an External Analysis • General Environment • Specific Environment • Industry • Porter’s Term

  4. Porter's 5 competitive forces • Existing Competitors • Possible Competitors • Consumers • Resource Providers • Alternative Industry Providers

  5. Existing Competitors • Numerously or equally balanced competitors • Slow industry growth • High fixed or storage costs • Lack of differentiation or switching costs • Addition of capacity in large increments • Diverse competitors • High strategic stakes • High exit barriers

  6. Possible Competitors • Economies of scale • Cost disadvantages from other than scale • Product differentiation • Capital requirements • Switching costs • Access to distribution channels • Government policy

  7. Consumers • Bargaining power of buyers • Consumers hold the cards • Abundance of product information

  8. Resource Providers • Bargaining power of suppliers • Seeking profit • Input providers

  9. Alternative Industry Providers • Substitute products • Lower prices • Near same quality • Sometimes larger quantity

  10. Benefits of External Analysis • Preparation • Adaptation • Competitive Edge

  11. Challenges of External Analysis • Rapid environmental change • Time consuming • No guarantees

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