The main character of input in the congruence model?
Input is what the manager can not control.
What are the 3 key points of input?
- Environment: technological, socio-political, economic, competitive
- Resources: Tangible (people, plant, $), Intangible (reputation, knowledge, skills)
- History: Past behavior/policies/performance
What do managers have to do to develop a strategy?
Scan and monitor the general environment
Gather intelligence about the industry and competitive environment
Name the according analysis for the following points:
- The general environment
- The competitive environment
- Firm situation
- The general environment : Pestle analysis
- The competitive environment: Porter’s Five Forces
- Firm situation: SWOT analysis
What does PESTLE stand for?
- Political
- Economic
- Social
- Technological
- Legal
- Ecological
5 Forces Analysis for Aldi
SWOT analysis?
- Strength
- Weakness
- Opportunities
- Threats
Why does the environment matter?
Tools to analyze it and link it to organizational planning and strategy
Common pitfalls?
- Assuming stable industry
- Confusing substitutes and competitors
- Fit in one time can mean unfit in another
How does rivalry intensify?
- # of competitors
- Slow industry growth
- Lack of differentiation or switching costs
What are barriers to new entrants in a market?
- Economies of scale
- Product differentiation
- Access to distribution channels
When do buyer have more bargaining power?
- Concentrated groups
- Commodity products/services
When do suppliers have more bargaining power?
- Concentrated groups
- The supplier’s product is an important input to the buyer’s business
- The supplier group’s products are diffentiated, or it has built up switching costs for the buyer
Threats of substitutes?
They limit the potential return of an industry by placing a ceiling on the prices that firms in that industry can profitably charge
The lower the price and the higher the performance of substitutes, the greater the threat
