| ★ | Lecture 02 - Input: External Environment

Question 1

Give for each Input Factor (3) , ..

🌴📈🏛️ / 💀↔️👮‍♂️

.. possible areas for managerial constraints & opportunity

Answer 1

Environment (Current contexts)

• s ocio-political
• t echnological, ,
• e conomic,
• e nvironment
• l egal

Resources

• I ntangible
  (reputation, knowledge, skills)
• T angible
  (people, plant, $)

History (Past)

• b ehavior
• p olicies
• p erformance

Question 1

Strategic planning
Tools and Frameworks (3)

Answer 1

Question 2

Why do managers emphasize inputs?

♟️📡 (2x2)

Answer 2

To plan and develop a strategy, managers must ..

• Scan and monitor
  the general environment
• Gather intelligence about
  the competitive environment

Doing so is part of a SWOT analysis

• Strengths, Weaknesses
  (Internal: resources, history)
• Opportunities, Threats
  (External: environment)

Question 2

PEST scenario/ analysis (6)
general environment

Answer 2

PEST scenarios / analysis, is a strategic framework that assesses macro-environmental factors affecting an organization or industry. It examines six key categories:

P - Political,
E - Economic,
S - Social,
T - Technological,
E - Environmental,
L - Legal.

Question 3

Describe the competitive environment / 5 Forces (5)

Answer 3

The “Five Forces” model is a strategic framework, that assesses the structure (competitive forces) within an industry. These forces include:

threat

• of new entrants
• of substitute products or services

bargaining power

• of buyers,
• of suppliers,

rivalry

• among existing competitors

Question 4

What is SWOT analysis? (3)

• Which parameters are internal and which are external?
• What is it used for?

Answer 4

• Internal: resources, history (Strength >< weakness)
• External: environment (Opportunities >< threats)

Gaining knowledge about
industry and firm conditions.

Question 5

Use the matrix (stakeholder management perspective) to understand the impact of different stakeholders (2)

💲⭐️❌❓

Answer 5

The matrix is based on two main dimensions: Interest, Power (BCG Matrix: Growth / Market Share)

The combination of these two dimensions results in four quadrants
in the matrix: manage closely, keep satisfied (💲 = Cash Cow)

• Optimum Cash Flow
  💲>❓,
• Success Sequence
  💲>❓>⭐️,
• Disaster Sequence
  ⭐️>❓>❌ or 💲>❌

Question 6

• Identify different forces of the competitive environment. (5)
• Diskuss how each force can be leveraged
  (value chain perspective) (4)

Answer 6

Porters five forces - are competitive forces:

1. Threat of New Entrants
2. Bargaining Power of Suppliers
3. Bargaining Power of Buyers
4. Threat of Substitutes
5. Competitive Rivalry

Organizations can leverage these forces through strategies like

1. Differentiation
2. Innovation
3. Supply chain management
4. Cost leadership

Question 7

What is PEST(EL) analysis?

• Name 1 example for each factor!
• What is it used for?

Answer 7

• P olitical: Tax policy
• E conomic: Inflation and interest rates
• S ocial: Population growth
• T echnological: Developments
• E nvironmental: Climate change
• L egal: Laws

Gaining knowledge about the general environment

Question 8

What is SWOT analysis? (2)

• Which parameters are internal and which are external?
• What is it used for?

Answer 8

• Internal: Strength (resources, history), weakness
• External: Opportunities, and threats (environment)

Gaining knowledge about industry and firm conditions

Question 9

What is PEST(EL) analysis?

• What is it used for?
• Case Study: Roche

Name one example for each factor!

Answer 9

Gaining knowledge about the general environment

• P olitical
  Tax policy, Ukraine, Brexit, Privatisation
• E conomic
  Inflation & interest rates, GDP, COVID-19
• S ocial
  Population growth & aging, obesity
• T echnological -
  Digitalization, Customization, Social Media
• E nvironmental
  Climate change, Sustsinability
• L egal
  Fraud & Infringement (Patent Expiration, Cyber Security), country dependent

Question 10

What are Porter’s five forces? (4)

• What is it used for?

Answer 10

Gaining knowledge about the competitive environment

Question 11

Name 2 examples for

• Environment,
• Ressources
• History

(Input: Congruence Modell)

Answer 11

Environment

• Market
• Gouvernements

Resources

• Tangible - People, Plant, Capital
• Intangible - Reputation, Knowledge

History

• Behavior
• Policies
• Performance

Question 12

Name two examples of how to plan and strategize in the face of radical uncertainty!

sheed

Answer 12

Design thinking & foresight methods

Foresight methods used to predict and plan for the future are ..

• s cenario planning
• h orizon scanning
• e xpert interviews
• D elphi esurveys
• trend analysis

Question 13

Name two major sources of entry barrier which restrict new entrants!

Answer 13

• Capital requirements
• Economies of scale

(“Skaliere die Produktion, Kosten werden kleiner – Economy of Scale, das merk’ ich mir feiner!”)

Question 14

Name 2 examples of when a buyer group is powerful!

Answer 14

• Low switching costs
• Low profits earnings

Question 15

Name 2 examples of when a supplier group is powerful!

Answer 15

• Low amount of suppliers to choose from
• Low share of profit

Question 16

What analysis would you use to gain knowledge about …

• industry and firm conditions
• competitive environment
• general environment

Answer 16

• Industry and firm conditions
  SWOT analysis
• Competitive environment
  Porter’s 5 forces
• General environment
  PEST(EL) analysis

Question 17

What is SWOT analysis? Which parameters are internal and which are external? What is it used for? (3)

Answer 17

● Internal: Strength (resources, history), weakness
● External: Opportunities, and threats (environment)
● Gaining knowledge about industry and firm conditions

Question 18

Name two major sources of entry barriers which restrict new entrants! (2) X

Answer 18

● Economies of scale
● Capital requirements

Question 19

Name two examples of when a buyer group is powerful! (2) X

Answer 19

● Low switching costs
● Low profits earnings