Analyzing the Current Situation

Today’s Discussion (Overview)

Environmental Scanning and Analysis

Analyzing the Internal EnvironmentMissionResourcesOfferingPrevious ResultsBusiness RelationshipsKeys to Success and Warning Signs

Overview ContinuedAnalyzing the External Environment

Demographic TrendsConsumer DemographicsBusiness Demographics

Economic TrendsEcological TrendsTechnological TrendsPolitical-Legal TrendsSocial-Cultural TrendsCompetitor analysisSWOT Analysis

Environmental ScanningMacro-environment

Broad demographic, economic, ecological, technological, political-legal and social-cultural forces

Micro-environmentSpecific groups that more directly

influence performance, such as customers, competitors, channel members, partners, suppliers, and employees

SWOT Strengths

Internal capabilities that can help the firm achieve its goals and objectives

Weaknesses Internal factors that can prevent the firm from

achieving its goals and objectives Opportunities

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

KodakStrengthsWeaknessesThreatsOpportunities

Internal Environment (Resources)

Offerings (Products)What products are being offeredWhat price pointsWhich customer segmentsWhat is the age, sales and profit trendsNew productsMarket shareImportance of each product (supplements)How does each product support the bottom lineDoes one product account for a large % of salesPLC can it be extended

Business RelationshipsDo suppliers and distributors

Have the capacity to increase volume if needed

Maintain a suitable quality levelCan be true partners in adding valueHas the roster changed over timeIs the company dependent on one

partner

Identify warning signs early

External Environment 1 2

Ryanair1991 pre low cost adLow cost no frillsOwn planes Boeing 737sFast turn around 25 minutes on groundUnder utilized Regional airports

Lower fees, Best on timeCarry and stow own bags, no in-flight

services Flight attendants pay for own training

and uniform

More RyanairPays no fees to computer

reservations systems and no commissions

Competition from Major airlinesEasyjet Marketing costs same per

passenger-kilometerToo much growth?Documentary

Porter’s generic StrategiesCost leadershipDifferentiationFocus

New coke