Analyzing the Current Situation
Today’s Discussion (Overview)
Environmental Scanning and Analysis
 Analyzing the Internal Environment

Mission
 Resources
 Offering
 Previous Results
 Business Relationships
 Keys to Success and Warning Signs

Overview Continued

Analyzing the External Environment

Demographic Trends
 Consumer
Demographics
 Business Demographics
Economic Trends
 Ecological Trends
 Technological Trends
 Political-Legal Trends
 Social-Cultural Trends
 Competitor analysis
 SWOT Analysis

Environmental Scanning

Macro-environment


Broad demographic, economic, ecological,
technological, political-legal and socialcultural forces
Micro-environment

Specific groups that more directly
influence performance, such as customers,
competitors, channel members, partners,
suppliers, and employees
SWOT

Strengths


Weaknesses


Internal factors that can prevent the firm from
achieving its goals and objectives
Opportunities


Internal capabilities that can help the firm achieve
its goals and objectives
External circumstances that the organization
might be able to exploit for higher performance
Threats

External circumstances that might hurt the
organization’s performance, now or in the future
Kodak
Strengths
 Weaknesses
 Threats
 Opportunities

Mission Statements
Internal Environment (Resources)
Offerings (Products)
What products are being offered
 What price points
 Which customer segments
 What is the age, sales and profit trends
 New products
 Market share
 Importance of each product (supplements)
 How does each product support the bottom line
 Does one product account for a large % of sales
 PLC can it be extended

Previous Results
Analyze trends
 Customer acquisition strategies

Traditional catalog retailers spend about
$38
 Net Flix spends about $35
 Too much?

Business Relationships

Do suppliers and distributors
Have the capacity to increase volume if
needed
 Maintain a suitable quality level
 Can be true partners in adding value
 Has the roster changed over time
 Is the company dependent on one partner

Identify warning signs early
External Environment 1 2
Porter’s generic Strategies
Cost leadership
 Differentiation
 Focus

New coke
Coke Brands
 Pepsi Brands
 Cadbury Schweppes
 Jones Soda
