Framework #2: PESTEG Analysis (General Environment)
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1. Factors external to an industry, usually beyond a firm's control.
→Political/Legal
→Economic
→Socio-cultural & Demographic
→Technology
→Environment
→Global
What determines the extent of the downward pressure on an industry's profitability?
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, the strongest of the 5 forces
Staging
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What will be our speed and sequence?
→Speed of expansion
→Sequence of initiatives
A Company's Strategy-Making Hierarchy
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1. Corporate Strategy
2. Business Strategy
3. Functional-area Strategy
4. Operating Strategy
Driving Forces Analysis: Step #3 → Adjusting the Strategy to Prepare for the Impacts
of Forces
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Managers need to draw conclusions about what strategy adjustments will
be needed to deal with the impacts of the driving forces.
,Inimitable
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Socially complex, historic, ambiguous
Driving Forces Analysis: Step #1 → What the Driving Forces Are-Most Common
Drivers of Industry Change
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→Changes in the industry's long-term growth rate.
→Increasing globalization.
→Emerging new Internet capabilities and applications.
→Shifts in buyer demographics.
→Technological change and manufacturing process innovation.
→Product and marketing innovation.
→Entry/Exit of major firms.
→Diffusion of technical know-how across companies and countries.
→Changes in cost and efficiency.
→Reductions in risk.
→Regulatory influences and policy changes.
→Changing societal concerns, attitudes, and lifestyles.
Presumed Benefits of a Mission Statement
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, →Communicates a sense of the firm's direction and purpose.
→Serves as a control mechanism to keep the firm on track.
→Make a wide range of day to day decisions.
→Inspires and motivates employees.
Stakeholders
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Include stockholders, employees, suppliers, the communities in which the
company operates, and society at large.
Concern for Employees (as a component of Mission Statement)
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Are employees a value asset of the firm?
Differentiators
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1. Factors external to an industry, usually beyond a firm's control.
→Political/Legal
→Economic
→Socio-cultural & Demographic
→Technology
→Environment
→Global
What determines the extent of the downward pressure on an industry's profitability?
Give this one a try later!
, the strongest of the 5 forces
Staging
Give this one a try later!
What will be our speed and sequence?
→Speed of expansion
→Sequence of initiatives
A Company's Strategy-Making Hierarchy
Give this one a try later!
1. Corporate Strategy
2. Business Strategy
3. Functional-area Strategy
4. Operating Strategy
Driving Forces Analysis: Step #3 → Adjusting the Strategy to Prepare for the Impacts
of Forces
Give this one a try later!
Managers need to draw conclusions about what strategy adjustments will
be needed to deal with the impacts of the driving forces.
,Inimitable
Give this one a try later!
Socially complex, historic, ambiguous
Driving Forces Analysis: Step #1 → What the Driving Forces Are-Most Common
Drivers of Industry Change
Give this one a try later!
→Changes in the industry's long-term growth rate.
→Increasing globalization.
→Emerging new Internet capabilities and applications.
→Shifts in buyer demographics.
→Technological change and manufacturing process innovation.
→Product and marketing innovation.
→Entry/Exit of major firms.
→Diffusion of technical know-how across companies and countries.
→Changes in cost and efficiency.
→Reductions in risk.
→Regulatory influences and policy changes.
→Changing societal concerns, attitudes, and lifestyles.
Presumed Benefits of a Mission Statement
Give this one a try later!
, →Communicates a sense of the firm's direction and purpose.
→Serves as a control mechanism to keep the firm on track.
→Make a wide range of day to day decisions.
→Inspires and motivates employees.
Stakeholders
Give this one a try later!
Include stockholders, employees, suppliers, the communities in which the
company operates, and society at large.
Concern for Employees (as a component of Mission Statement)
Give this one a try later!
Are employees a value asset of the firm?
Differentiators
Give this one a try later!
