Strategic 2: Analyzing The External – Flashcards
Unlock all answers in this set
Unlock answersquestion
A framework for analyzing a company's internal and external environment and that stands for strengths, weaknesses, opportunities, and threats.
answer
SWOT Analysis
question
Factors external to an industry, and usually beyond a firm's control, that affect a firm's strategy.
answer
General Environment
question
Genetic and observable characteristics of a population, including the levels and growth of age, density, sex, race, ethnicity, education, geographic region, and income.
answer
Demographic Segment of the General Environment
question
The values, beliefs, and lifestyles of a society.
answer
Sociocultural Segment of the General Environment
question
How a society creates and exercises power, including rules, laws, and taxation policies.
answer
Political/Legal Segment of the General Environment
question
Innovation and state of knowledge in industrial arts, engineering, and pure science; and their interactions with society.
answer
Technology Segment of the General Environment
question
Characteristics of the economy, including national income and monetary conditions.
answer
Economic Segment of the General Environment
question
influences from foreign countries, including foreign market opportunities, foreign-based competition, and expanded capital markets.
answer
Global Segment of the General Environment
question
A group of firms that produce similar goods or services.
answer
Industry
question
Factors that pertain to an industry and affect a firm's strategies.
answer
Competitive Environment
question
A tool for examining the industry-level competitive environment, especially the ability of firms in that industry to set prices and minimize costs.
answer
Porter's Five-Forces Model of Industry Competition
question
Possibility that the profits of established firms in the industry may be eroded by new competitors.
answer
Threat of New Entrants
question
Decreases in cost per unit as absolute output per period increases.
answer
Economies of Scale
question
The degree that a product has a strong brand loyalty or customer loyalty.
answer
Product Differentiation
question
One-time costs that a buyer/supplier faces when switching from one supplier/buyer to another.
answer
Switching Cost
question
The threat that buyers may force down prices, bargain for higher quality or more services, and play competitors against each other.
answer
Bargaining Power of Buyers
question
The threat that supplies may raise prices or reduce the quality of purchased goods and services.
answer
Bargaining Power of Suppliers
question
The threat of limiting the potential returns of an industry by placing a ceiling on the prices that firms in that industry can profitably charge without losing too many customers to substitute products.
answer
Threat of Substitute Products and Services
question
Products and services outside the industry that serve the same customers needs as the industry's products and services.
answer
Substitute Products and Services
question
The threat that customers will switch their business to competitors within the industry.
answer
Intensity of Rivalry Among Competitors in an Industry.
question
A global network of linked computers that use a common transmission format, exchange information and store data.
answer
Internet
question
A situation in which multiple players interact, and winners win only by taking from other players.
answer
Zero-Sum Game
