Strategic Management PEARCE & ROBINSON

1. Chapter 3 The External Environment

9. Ex. 3-7: Federal Ecological Legislation Centerpiece Legislation National Environmental Policy Act, 1969 Established Environmental Protection Agency; consolidated federal environmental activities under it. Established Council on Environmental Quality to advise president on environmental policy and to review environmental impact statements

13. Characteristics of Eco-Efficient Companies Proactive, not reactive Design in, not add on Flexibility Encompassing, not insular

16. Ex. 3-9: Forces Driving Industry Competition Suppliers Substitutes Industry Competitors Rivalry Among Existing Firms New Entrants Buyers Bargaining power of suppliers Threat of substitute products or services Bargaining power of buyers Threat of new entrants

25. Sources of Difficulty in Defining Industry Boundaries Evolution of industries over time creates new opportunities and threats Industry evolution creates industries within industries Industries are becoming global in scope

31. Operating Environment The operating environment, also called the competitive or task 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

38. Factors Related to Assessing Relationship With Suppliers How costly are shipping charges? Are suppliers competitive in terms of production standards? Are suppliers’ prices competitive? Do they offer quantity discounts? In terms of deficiency rates, are suppliers’ abilities, reputations, and services competitive? Are suppliers reciprocally dependent on the firm?

40. Factors Related to Acquiring Needed Human Resources A firm’s access to needed personnel is affected by Reputation as an employer Local employment rates Availability of people with needed skills