Chapter 3 Evaluating a company´s external

environment

Assessing the What cooperative What strategic moves Key factors for
forces are present Industry Strategic The industry
The strategically company´s are rivals likely to competitive success
in the industry, dynamics and the Group outlook for
relevant factors in insdustry and make next?
and how can a forces driving Analysis profitability
the company´s competitive
company harness change
macro-environment environment
them to its
advantage?

The macro- Working through the Interactions Driving forces are

environment five forces model aids among the major
Kinds of Is a technique for Anticipating the Resources
encompasses the strategy makers in industry underlying causes The last step in industry
competiti displaying the actions of rivals can
broad assessing how to participants of change in analysis is summing up the
ve forces different market help a company
environmental insulate the company are not only industry and results from applying each
context in which a competitive competitive or competitive prepare effective of the frameworks
from the strongest positions that rival countermoves.
company’s forces, identify in nature but conditions. employed in answering
industry is cooperative firms occupy in questions 1 to 6: PESTEL,
attractive arenas for the industry.
situated. Rivalry within expansion, or alter the as well. five forces analysis, driving
the industry competitive Competitive forces, strategic group
conditions so that capabilities mapping, competitor
The first step is to identify analysis, and key success
PESTEL analysis can be The threat of they offer more the three or four most factors.
used to assess the new entry favorable prospects important drivers of change
strategic relevance of into the for profitability affecting the industry being
market The lesson of strategic
the six principal analyzed group mapping is that
components of the some positions on the Operational
macro-environment: P Inroads being map are more approaches
olitical, E conomic, S made by the The second step in driving-forces favorable than others.
ocial, T echnological, E sellers of analysis is to determine whether
nvironmental, and L substitutes If the answers from each
the prevailing change drivers, on framework, seen as a
egal/ Regulatory forces. the whole, are acting to make whole, reveal that a
Supplier the industry environment more Strategy company’s profit prospects
bargaining or less attractive. elements in that industry are above-
power average, then the industry
environment is basically
attractive for that
Buyer The third step in the strategic
company.
bargaining analysis is for managers to draw Basic
power some conclusions about what questions
 needed to deal with the impacts of
the driving forces.

UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓN

FACULTAD DE CONTADURÍA PÚBLICA Y ADMINISTRACIÓN

LICENCIATURA EN NEGOCIOS INTERNACIONALES

Administración Estratégica

Chapter 3.- Evaluating a company´s external environment

Profesor Alejandro Garza Treviño

GRUPO: 9Ai

Mario Alejandro Cavazos Coronado 1676556

February 2020