Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitor
Analysis
A. Explain the importance of analyzing and understanding the firm’s external environment.
Three important questions: Why, What, How
1. Defining the business environment (What)
- Macro environment
- Business of industrial environment: factors affecting the specific industry => eg: laptop industry
- Firm
2. How
- Physical (asset or resources)
-
-
Demographic segment + Population size (Quy mô dân + Ethic mix
+ concerned with a số)-How many people living in Conflict, cultural
population’s size, age the market? differences
structure, geo graphic More buyers, more Labor force comes
distribution, ethnic mix, and market from different
income distribution. Supply of Labor force countries and
+ Demographic segments are + Age structure (cơ cấu tuổi) cultures
commonly analyzed on a Preferences and + Income distribution
global basis because of their tastes, different Kinds of Buying
potential effects across characteristics of products
countries’ borders and products Eg: High income:
because many firms compete Labor force => young more luxury
in global markets. people are creative products and
and easily adapt to services.
technology, but less + Low income: focus
committed and stable on necessary
+ Geographic distribution products
Companies often (VN has less famous
located in populous luxury brands)
areas like big cities…
Economic segment + Inflation rates + Personal savings rate
- Convinence to make Borrowing + Business savings rates
profit/money Amount of bought + GDP (Gross domestic
- How company materials (input) less products)
control resources with the same - Higher GDP, higher
amount of money, income => demand
cost increases increases
- Demand decrease - Reflects Standard of
(because value of living
money decreases =>
buy less
- Cost of products and
manufacturing
increases.
+ Interest rates
Why we should borrow
money ?
- Businesspeoople dùng
tiền và vốn của người
khác làm giàu cho
mình
- Avoid risk: Market is
variable, borrowing is
help to reduce risk
- Tính thanh khoản sửa
dụng vốn tăng
+ If the gov increase/decrease
interest, it affects the
company
+ Trade deficits (export <
import) / surpluses (export >
import => good economic sign
=> gov try)
- Reducing domestic
currency
- Gov’s policies
+ Budget deficits or surplus
(Gov using this kinds of
money for public
infrastructure and
adminisstrative work). This
kind of money comes mainly
for receiving tax from the
company. If Budget deficits =>
Bad => gov find the way to
take tax => not good for
business
Political/Legal segment + Antitrust law (Luật chống + Labor training laws
độc quyền-law anti-monopoly - Good labor forces
in the market) for business
- Charge monopoly
prices + Educational philosophies
- No opportunities for and policies
other investors => no
economic growth =>
no tax for gov
Eg: VN laws stated that no
company is allowed to
possess more than 30% of the
market shares
VN hướng đến free
market
+ Taxation laws
- Companies đầu tư vào
nhiều công ty sẽ tránh
được một số lượng
thuế khác hơn là cầm
số tiền đó đầu tư vào
1 lĩnh vực.
- Thuế charge cho từng
lĩnh vực 1, nên đầu tư
vào 1 lĩnh vực với
doanh thu cao, thì
thuế càng cao
+ Deregulation philosophies
(tránh những rằng buộc pháp
lý để business environment is
transparent)
- Giamr thủ tục hành
chính => Tái cơ cấu
hành chính => Giamr
cơ quan chính phủ =>
speed up the
economic process.
Sociocultural segment + Women in the workforce + Shift in work and career
+ Work diversity preferences
+ Attitudes about the quality + Shift in pre
of work life
Technological segment + Production innovations + Focus of private and
Technology now focus on how government-supported R&D
to create new things => expenditures
differentiate + New communication
+ Applications of knowledge technologies
Global segment
Physical environment
segment
Bài nhóm: Phân tích những yếu tố quan trong tùy vào tính chất của công ty, chứ không cần phân tích
hết
- Get data và xem nó thay đổi ntn theo từng năm, ảnh hưởng thế nào negative/positive =>
threat/opportunities
What?
B. Define and describe the general environment and the industry environment.
C. Discuss the four parts of the external environmental analysis process.
D. Name and describe the general environment’s seven segments.
E. Identify the five competitive forces and explain how they determine an industry’s profitability
potential.
F. Define strategic groups and describe their influence on firms.
G. Describe what firms need to know about their competitors and different methods (including
ethical standards) used to collect intelligence about them.
One company-analyze external environment analysis
Industry
