Presentation: Farmer-led climate adaptation - Project launch and overview by ...
Akashdeepsinghjandu9
1. 1. Remote Environment
Economic Factors
• Concern the nature and direction of economy in
which a firm operates
• Types of factors
• General availability of credit
• Level of disposable income
• Propensity of people to spend
• Prime interest rates
• Inflation rates
• Trends in growth of gross national product
2. Social Factors
• Beliefs, values, opinions, and lifestyles
of people
• Recent social trends
• Entry of large numbers of women into labor
market
• Accelerating interest of consumers and
employees in quality-of-life issues
• Shift in age distribution of population
3. Political Factors
• Define legal and regulatory parameters
within which firms must operate
• Types of factors
– Free-trade agreements
– Antitrust laws
– Tax programs
– Minimum wage legislation
– Pollution and pricing policies
– Administrative jawboning
4. Technological Factors
• Focus on technological changes affecting
industry
• Types of changes
• New products
• Improvements in existing products
• Manufacturing and marketing techniques
• Role of technological forecasting
• Foresees advancements and estimating their impact
on organization’s operations
• Alerts managers to impending challenges and
promising opportunities
5. Ecological Factors
• Ecology refers to the relationships among
human beings and other living things and air,
soil, and water
• Current concerns
• Global warming
• Loss of habitat and biodiversity
• Air, water, and land pollution
• Responsibilities of firms
• Eliminating toxic by-products of current manufacturing
processes
• Cleaning up prior environmental damage
7. Competitive Force: Threat of Entry
• Seriousness of threat depends on
• Barriers to entry
• Reaction of existing firms
• Barriers to entry
• Product differentiation
• Capital requirements
• Cost advantages
• Access to distribution channels
• Government policy
8. Competitive Force: Suppliers
• A supplier group is powerful if:
• It is dominated by a few companies and is more
concentrated than industry it sells to
• Its product is unique, or differentiated, or has built
up switching costs
• It is not obliged to contend with other products for
sale to industry
• It poses a threat of integrating forward into
industry’s business
• Industry is not an important customer of supplier
group
9. Competitive Force: Buyers
• A buyer group is powerful if:
• It is concentrated or purchases in large volume
• Products purchased from industry are standard or
undifferentiated
• Products purchased from industry form a component
of its product, representing a significant fraction of its
cost
• It earns low profits, creating incentives to lower its
costs
• Industry’s product is unimportant to quality of buyers’
products or services
• Industry’s product does not save buyer money
• Buyer poses credible threat of integrating backward
10. Competitive Force: Substitute Products
• Relevance of substitutes
• By placing a ceiling on prices charged, they limit profit
potential of an industry
• Substitutes deserving the most attention are
those
• Subject to trends improving their price-performance
trade-off with the industry’s product
• Produced by industries earning high profit
11. What Causes Rivalry to be Intense?
競爭力越高 , 利潤被瓜分的越多
• Numerous competitors or they are roughly
equal in size and power
• Slow growth in industry
• Product lacks differentiation or switching costs
• High fixed costs or perishable product
• Capacity normally augmented in large
increments
• High exit barriers
• Rivals are diverse in strategies, origins, and
“personalities”
12. 3. Operating Environment
The operating environment comprises factors in the
competitive situation that affect a firm’s success in
acquiring needed resources or in profitably
marketing its goods and services
13. Factors in the Operating Environment
• Firm’s competitive position
• The composition of its customers
• Its reputation among suppliers and creditors
• Its ability to attract capable employees
14. Constructing competitor profiles
• Market share
• Breadth of product line
• Effectiveness of sales
distribution
• Proprietary and key-account
advantages
• Price competitiveness
• Advertising and promotion
effectiveness
• Location and age of facility
• Capacity and productivity
• Experience
• Raw material costs
• Financial position
• Relative product quality
• R&D advantages position
• Caliber of personnel
• General images
• Customer profile
• Patents and copyrights
• Union relations
• Technological position
• Community reputation
15. III. Internal Analysis
• Resource-based View of the Firm
• Value Chain Analysis
• SWOT Analysis
• Internal Analysis: Making Meaningful
Comparisons
16. What is the Resource-based View of the Firm?
Firms differ in fundamental ways because
each firm possesses a unique “bundle” of
resources – tangible and intangible assets
and organizational capabilities to make use
of those assets.
17. The Three Basic Resources
• Tangible assets
• Easiest to identify and often found on a firm’s balance sheet
• Include physical and financial assets
• Examples: production facilities, raw materials, financial resources
• Intangible assets
• Cannot be seen or touched
• Often very critical in creating competitive advantage
• Examples: brand names, company reputation, company morale
• Organizational capabilities
• Involve skills – ability to combine assets, people, and processes –
used to transform inputs into outputs
18. What Makes a Resource Valuable?
• Competitive superiority:
Does the resource help
fulfill a customer’s need
better than those of the
firm’s competitors?
• Resource scarcity: Is
the resource in short
supply?
• Inimitability: Is the
resource easily copied or
acquired?
• Appropriability: Who
actually gets the profit
created by a resource?
• Durability: How rapidly
will the resource
depreciate?
• Substitutability? Are
other alternatives
available?
19. Isolating Mechanisms
• Physically unique resources
• Resources virtually impossible to imitate
• E.g., one-of-a-kind real estate location, mineral rights,
patents
• Path-dependent resources
– Resources that must be created over time in a manner that
is often expensive and difficult to accelerate
– E.g., Dell Computer’s system of direct sales of customized
PCs via the Internet, Coca-Cola’s brand name, Gerber
Baby Food’s reputation for quality
20. Isolating Mechanisms
• Causal ambiguity
• Situations where it is difficult for competitors to
understand how a firm has created its advantage
• E.g., Southwest Airlines’ approach
• Same plane, routes, gate procedures, number of
attendants
• Culture of fun, family, and frugal yet focused service
• Economic deterrence
• Involves large capital investments in capacity to
produce products or services in a given market that are
scale sensitive
21. Resource Inimitability
(Adapted)
• Easy to imitate
• Cash, commodities
• Can be imitated (but may not be)
• Capacity preemption, economies of scale
• Difficult to imitate
• Brand loyalty, employee satisfaction, reputation for
fairness
• Cannot be imitated
• Patents, unique locations, unique assets
22. Key Resources Across Functional Areas
(Selected)
Marketing
• Firm’s products/services
• Concentration of sales in a few
products or a few customers
• Ability to gather needed
information about markets
• Market share
• Product-service mix and
expansion potential
• Channels of distribution
• Effective sales organization
Financial and Accounting
• Ability to raise short-term
and long-term capital; debt-
equity
• Corporate-level resources
• Cost of capital relative to
competitors
• Tax considerations
• Relations with owners,
investors, and stockholders
• Leverage position
• Cost of entry and barriers to
entry
23. (contd.)
Production, Operations,
Technical
• Raw materials cost and
availability, supplier
relationships
• Inventory control systems
• Location, layout, and use of
facilities
• Economies of scale
• Technical efficiency of facilities
• Effectiveness of subcontracting
use
• Degree of vertical integration
Personnel
• Management personnel
• Employees’ skills and morale
• Labor relations costs
compared to competitors
• Efficiency and effectiveness of
personnel policies
• Effectiveness of incentives
used to motivate performance
• Ability to level peaks and
valleys of employment
24. (contd.)
Quality Management
• Relationships with suppliers,
customers
• Internal practices to enhance
quality of products and
services
• Procedures for monitoring
quality
Information Systems
• Timeliness and accuracy of
information about sales,
operations, cash, and
suppliers
• Relevance of information for
tactical decisions
• Information to manage quality
issues, customer service
• Ability of people to use
information provided
25. (contd.)
Organization and General Management
• Organizational structure
• Firm’s image and prestige
• Firm’s record in achieving objectives
• Organization of communication system
• Organizational climate and culture
• Use of systematic procedures in decision making
• Top management skills, capabilities, and interest
• Strategic planning system
• Intra-organizational synergy
26. What is a Value Chain?
The term value chain describes
a way of looking at a business
as a chain of activities that
transform inputs into outputs
that customers value
