【商业策略英文版】EnvironmentalandInternalScanning.ppt

Dr. Jerry L. Huxell Business Policies and Strategies Environmental and Internal Scanning Sun Tzu Chinese General “ Know the enemy and know yourself; in a hundred battles you will never be in peril. When you are ignorant of the enemy but know yourself, your chances of winning or losing are equal. If ignorant of both your enemy and yourself, you are certain in every battle to be in peril.” PESTEL Analysis Political – legal Economic Socio-cultural Technological Environmental Legal TOWS Analysis Threats – unfavorable conditions Opportunities – favorable conditions Weaknesses – limitations or deficiencies relative to the competition or the environment Strengths – resources, skills or advantages relative to the competition or the environment Threats New market entrants Increased competition Increased power from buyers and suppliers Substitutes Economic cycle downturns Demographic changes Opportunities New markets and segments New products Diversification opportunities Market growth Competitor weakness Demographic and social change Change in environment Weaknesses Few core strengths Low market share Old plant or technology Weak finances and/or poor cash flow Lacking management skills Poor record on innovation Low quality and/or reputation Non-differentiated products Strengths Market dominance Core strengths Economies of scale Low cost position Leadership and management skills Financial and cash reserves Manufacturing ability Reputation Differentiated products Analysis of Financials Liquidity ratios – ability to meet short term obligations Leverage ratios – extent of debt financing Activity ratios – effective use of resources Profitability ratios – effectiveness of the firm Growth rates – ability to maintain economic position Industry Analysis Typical Uses of Industry Analysis Understand current profitability levels Identify forces that must be countered in order to achieve superior profitability Test decision to enter an industry Test decision to exit an indu