Написать эссе: Strategic Analysis of your organisation’s external environment
Azhar Kazmi - Business policy and strategic management 2nd edition, 2004
G.Johnson, K.Scholes, R.Whittington “Exploring Corporate Strategy”, Prentice Hall, 2002
Jemison, David B.. 1981. Organizational versus Environmental Sources of Influence in Strategic Decision Making. Strategic Management Journal 2, no. 1 (January 1): 77. http://www.proquest.com/ (accessed June 12, 2009).
Porter, E M 2003, Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press, Glencoe, Illinois.
Stapleton, T. (2003) The External Environment, The Open University
3.How much time and resource do consumers have for their business? Advertisement and PR of Lawrent Company are directed at clients who can afford the service of professionals.
Technology is vital for competitive advantage, and is a major driver of globalization. When analyzing Lawrent Company’s environment the following points are considered:
1. Does technology allow for services to be made more cheaply and to a better standard of quality? The answer is definitely yes, such systems as “Garant plus”, “Consultant”, “1C” considerably decrease time and increase efficiency of Lawrent Company.
2. Do the technologies offer consumers and businesses more innovative services such as Internet banking, etc? Yes, Lawrent Company uses innovative services which are one of compet
Показать всеitive advantage of the company.
3. Does technology offer company a new way to communicate with consumers e.g. e-request, etc? Lawrent Company successfully use new communication, has possibility to distant work and distant payment.
The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a Lawrent Company business. The PEST analysis is a business measurement tool.
Industry competitive position is well described in a model for industry analysis by Michael Porter which is called Porter’s five forces.
The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure.
Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.
In the traditional economic model, competition among rival firms drives profits to zero. But competition is not perfect and firms are not unsophisticated passive price takers. Rather, firms strive for a competitive advantage over their rivals. The intensity of rivalry among firms varies across industries, and strategic analysts are interested in these differences. In the domain of complex business support rivalry only increases the quality of service and this lead to profit and satisfied clients.
II. Threat of Substitutes
In Porter's model, substitute products refer to products in other industries. To the economist, a threat of substitutes exists when a product's demand is affected by the price change of a substitute product. A product's price elasticity is affected by substitute products - as more substitutes become available, the demand becomes more elastic since customers have more alternatives. A close substitute product constrains the ability of firms in an industry to raise prices. In the business support domain substitutes are not a serious threat because legal and accounting outsourcing cannot be replaced by other services.
III. Buyer Power
The power of buyers is the impact that customers have on a producing industry. In general, when buyer power is strong, the relationship to the producing industry is near to what an economist terms a monopsony - a market in which there are many suppliers and one buyer. Under such market conditions, the buyer sets the price. In reality few monopsonies exist in complex business support and no in Central Russia, but sometimes there is some asymmetry between a producing industry and buyers in province.
IV. Supplier Power
A producing industry requires raw materials - labor, components, and other supplies. This requirement leads to buyer-supplier relationships between the industry and the firms that provide it the raw materials used to create products. Suppliers, if powerful, can exert an influence on the producing industry. In non-manufacturing business material is human brains and so suppliers are educational institutions. Lawrent Company hires only highly skilled specialists.
V. Barriers to Entry / Threat of Entry
It is not only incumbent rivals that pose a threat to firms in an industry; the possibility that new firms may enter the industry also affects competition. In theory, any firm should be able to enter and exit a market, and if free entry and exit exists, then profits always should be nominal. In reality, however, industries possess characteristics that protect the high profit levels of firms in the market and inhibit additional rivals from entering the market. These are barriers to entry.
Lawrent Company is prestige enough (it is in the first dicker of the business consulting companies in its area) has been operating in the market for 11 years, it means that the company itself can appear a barrier to entry for other firms. But the thread of entry is actual because the demand for business support is high and on the other hand the amount of specialists is also increasing. To stay on a high position and prevent decrease of clients Lawrent Company constantly works with staff, people visit professional seminars and have retraining. To protect staff outflow the company provides good motivation and bonus policy, it has good personal development programmes.
Competitor Analysis is an important part of the strategic planning process.
Some businesses think it is best to get on with their own plans and ignore the competition. Others become obsessed with tracking the actions of competitors (often using underhand or illegal methods). Many businesses are happy simply to track the competition, copying their moves and reacting to changes.
Competitor analysis has several important roles in strategic planning:
• To help management understand their competitive advantages/disadvantages relative to competitors Скрыть
за 10 минут
Эта работа вам не подошла?
У наших авторов вы можете заказать любую учебную работу от 200 руб.
Оформите заказ и авторы начнут откликаться уже через 10 минут!