External Environment Analysis Assignment 2022

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Chapter 3
External Environment Analysis
Assoc Prof. Dr. Lê Thái Phong
Dean, Faculty of Business Administration
Foreign Trade University
E: [e-mail]
T: 0975.055.299
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Learning objectives
1. Macro environments
2. Industry environments
3. Competitor intelligence
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2-3
THE
MACRO-ENVIRONMENT
THE
INDUSTRY
External and Internal Analysis
THE
COMPANY
STRATEGIC GROUPS
INDUSTRY STAGE of DEVELOPMENT
5 FORCES MODEL (Plus 1)
•Rivalry
•Barriers to entry
•Suppliers
•Buyers
•Substitutes
•Complementors
EXTERNAL
Macroeconomics
Economic
Political & Legal
Technology
Socio-cultural
Demographic
EXTERNAL
COMPANY STAGE of DEVELOPMENT
VALUE CREATION
•Efficiency
•Innovation
•Customer Responsiveness
•Quality
INTERNAL
STRENGTHS and
WEAKNESSES
OPPORTUNITIES
and THREATS
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Environment analysis
• Macro environment analysis
• Industry environment analysis
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Macro environment
• Driving economic, political/legal, and
technological conditions and changes ->
creating both opportunities and threats
• PEST = ...............
• Political
• Economic
• Sociocultural
• Technological
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Political
• influencing the nature of
competition -> creating
opportunities and threats
• Political system: stable – unstable
• Political risks
• De/regulation
• Competition law
• Labour law
• Tax system
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Economic
• affecting how difficult or easy to be unsuccessful
and profitable any time
• Economic system
• GDP growth rate
• GDP per capita
• Inflation
• Interest rate
• Exchange rate
• Trade deficit or surplus
• Budget deficit or surplus
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sociocultural
• Environment concern
• Workforce diversity
• Work-life quality view
• Shift in product/quality preferences
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Technological
• Including the institutions and activities
involved with creating new knowledge and
translating that knowledge into new outputs,
products, processes, and materials.
• R&D expenditure
• Product innovation
• Knowledge resources
• Process innovation
• New communication technologies
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The world now
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Industry environment
• A group of companies offering products
and/or services that are close substitutes
• For example:
• The boundary might change:
– Customers and technology
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