Week 2 DQ’s
Briefly describe two important changes within the last ten years in the remote environment of and their impact on U.S. business in each of the following areas:
a. Economic b. Social c. Political d. Technological e. Ecological
Which factors complicate environmental analysis at the global level? Which factors are making such analysis easier? Do you agree with the suggestion that soon all industries will need to evaluate global environments? ( Note: Environmental does not mean just ecological )
Choose a specific industry and, relying solely on your impressions, evaluate the impact of the five forces ( Porter’s Model ) that drive competition in the industry.
The industry I chose is the weekly published and printed news magazine. From what I have learned from Porter’s model is this. From the part of supplier concentration (that being the paper, ink, cameras, computers, printers, fax machines and printing presses), there is or shouldn’t usually be a shortage for this industry. In other words, these competitors should be fine getting what they need to do business as long as their finances are okay.
Next we look at the threat of new entrants. Even without going into depth about the details (unless some foreign developing nation can get into it (that is with understanding the pulse of America)) at a cheaper cost then their first world counterparts, there should be no threat of any new entrants into this slowly sinking ship of an industry.
Now review buying power’s role in this. The magazines the 2 big ones are competitively priced. I cannot see them raising prices much, but at least one of them has cut back on length of magazine and paper and cover quality. They both have declining ad revenue too.
There is a small degree of rivalry here. The 2 main ones are Time and Newsweek have their followers and they most likely wouldn’t switch readership from one to another. Time is more for those who lean to the right whereas Newsweek is for those on the left. Also, looking at this part of Porter’s Model one can see little industry growth as well as few other changes possible in this realm of Porter’s Model concerning this stagnant industry.
Now, I do see something big continuing to hurt this industry. That is the threat of substitutes. That is with more and more people “surfing the net” while doing their jobs or enjoying their free time. There is more and more opportunity to read or see the news on line without paying a subscription to the site to do so. So many people do this on a daily basis.
Many firms neglect industry analysis. When does it hurt them? When does it not? Who in the firm should be responsible for industry analysis if that firm does not have a strategic planning department?
If the company wants to grow and be sure to keep the same sales, it is important to analyze the industry and identify weaknesses and strengths of the industry, the competition, and the company itself. If they have a satisfactory volume in a good industry, people tend to forget the industry and that can work out okay. But without the analysis, there is a possibility that they will not react fast enough when change comes. Many firms neglect the analysis because it can be expensive and or lead management down the wrong path with questionable information.
When it comes to who should be responsible for the industry analysis, in fact all or the entire management in the company or a firm are responsible for industry analysis but in their respective domains. To elaborate this further, we can say that all functional heads ie. Marketing, finance, strategic planning, financial management , Operations and Production, etc should get actively involved in their respective functional responsibility to do the industry analysis, aimed at achieving common corporate goals or objectives.
Describe SWOT analysis as a way to guide internal analysis. How does this approach reflect the basic strategic management process? Why do you think value chain analysis has become a preferred approach to guide internal analysis? What are its strengths? It’s weaknesses? The traditional SWOT analysis has been changed to SWOTT with the addition of Trend analysis. Why do you think this was done? Comment on whether this change makes a significant difference or not
Apply SWOTT analysis to yourself and your career aspirations. What are your major strengths and weaknesses? How might you use your knowledge of these strengths and weaknesses to develop your future career plans?
( Your Own DQ )
Please review and post an excerpt from an article in your local newspaper, Wall Street Journal, Business Week, Forbes, or any other business magazine relating to strategic planning, economic issues or anything relevant to this course. Please summarize this article adding your own thoughts in about 150 to 300 words. Thank you and good luck.