Understanding a firm’s general environment
19 important questions on Understanding a firm’s general environment
How does technological change affect a firm?
- Creates opportunities for new products/services.
- Forces rethinking of technological strategies.
- Can lead to both opportunities and threats.
What is the importance of demographic trends for a firm?
- Distribution in terms of age, sex, income.
- Helps determine product/service appeal.
- Identifies potential customer base.
How do cultural trends impact firm strategy?
- Reflect values, beliefs, norms.
- Define what's 'right', 'wrong', 'good', 'bad'.
- Significant for gaining competitive advantage.
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Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
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In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
Explain the economic climate's role in a firm's strategy.
- Health of economic systems affects operations.
- Periods: Recession, depression, business cycle.
- Influences strategic choices.
What do legal and political conditions encompass?
- Laws and impacts on business.
- Government-business relationships.
- Variability across countries.
What are the main trends in the external environment that affect firms?
- Demands from stakeholders: Balancing People – Planet – Profit.
- Globalization: Outsourcing increases vulnerability and backlash.
- Changing government regulation: Regulations can create unfair advantages.
- Technology: Brings both threats (loss of jobs) and opportunities (increased effectiveness).
How do demands from stakeholders influence firm operations?
- Maximizing shareholder value.
- Ensuring social responsibility.
- Improving public perception.
- Balancing People, Planet, and Profit.
What impact does globalization have on firms?
- Emphasizing core competences.
- Increasing vulnerability to global market shifts.
- Potentially leading to social and political backlash.
- Driving a shift from outsourcing to insourcing.
How can changing government regulations affect a firm like Google?
- Creating unfair advantages in search results.
- Resulting in financial penalties.
- Triggering consumer distrust.
- Necessitating operational changes to comply.
What are the dual effects of technology on firms?
- Threats include potential job losses.
- Opportunities arise from enhanced effectiveness.
- Encourages innovation and improved processes.
- Requires adaptation to remain competitive.
What are the implications of rising environmental changes on competitive advantage?
- Transition from stability to punctuated equilibrium.
- Shift towards hyper competition.
- Innovations can quickly be matched by competitors.
- Companies need to be quick and agile.
- Sustainable competitive advantage is harder to maintain.
What are some examples of sectors facing disruptions, and what is the consequence?
- Sectors facing disruption:
- - Retail
- - Energy
- - Healthcare
- - Hotels
- - Taxis
- - Banking
- - Television
- Consequence: Destruction of existing business models.
What are the relevant aspects of classical strategic analysis for strategy?
- Identifying opportunities and threats.
- Offering strategic insights for industry analysis.
- Guiding the selection of an attractive industry.
- Informing strategy development and asset building.
What is involved in an externally driven strategy process?
- Analyze industries.
- Select an attractive industry.
- Develop a matching strategy.
- Build required assets.
- Implement strategy.
How do generic industry structures and strategic opportunities correlate?
- Fragmented industry: Consolidation.
- Emerging industry: First mover advantages.
- Mature industry: Product refinement, service quality, process innovation.
- Declining industry: Leadership, niche, harvest, divestment.
What challenges arise due to rising environmental changes in external analysis?
- Increased frequency and impact of environmental changes.
- Importance of external analysis rises.
- Feasibility of external analysis decreases.
What are the levels and tools of external analysis?
- General environment: Overall external trends.
- Industry: Specific sector analysis.
- Strategic group: Cluster of similar firms.
- Competitor analysis:
2. Resource similarity
- Predict competitive interaction: Forecast rivalry dynamics.
What does the term "industry" refer to, and what considerations are important in defining it?
- Refers to companies producing similar products/services using related technologies.
- Not to be confused with manufacturing.
- Considers similar functionality for clients and similar production processes.
- Vital first step in analysis.
What are the implications of defining an industry too narrowly or too broadly?
- Too narrow: Other players are potential entrants or substitutes; risk of being a monopolist.
- Too broad: Other players are direct competitors; risk of being a powerless price taker.
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