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Environment-Concept, Components and Appraisal

This document discusses environmental scanning and industry analysis. It provides an issues priority matrix that ranks potential issues based on their probability of occurrence and impact on a corporation. It also presents Porter's model of five competitive forces that drive industry competition: potential entrants, industry competitors/rivalry, substitutes, suppliers, and buyers. Finally, it lists factors considered in Porter's model, such as the threat of new entrants, power of stakeholders, and bargaining power of buyers and suppliers.

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37 views5 pages

Environment-Concept, Components and Appraisal

This document discusses environmental scanning and industry analysis. It provides an issues priority matrix that ranks potential issues based on their probability of occurrence and impact on a corporation. It also presents Porter's model of five competitive forces that drive industry competition: potential entrants, industry competitors/rivalry, substitutes, suppliers, and buyers. Finally, it lists factors considered in Porter's model, such as the threat of new entrants, power of stakeholders, and bargaining power of buyers and suppliers.

Uploaded by

sumeetgoyal16
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Environment-Concept,

Components and appraisal


Topic 8th (Last); Unit 1
Wheelen and Hunger (8th edition)
Chapter 3: Environmental Scanning and
Industry Analysis
Pages 51 to 76

Appraisal
Issues Priority Matrix
Probability of
Occurrence

Probable
HIGH

Impact on
MEDIUM

Corporation
LOW

HIGH

MEDIUM

LOW

Examples of cases 1 to 9
Increase in CRR Increase in CRR Increase in CRR
by 0.5%
by 0.5%
by 0.5%
Banking
Construction
Textile
Increase in Steel Increase in Steel Increase in Steel
prices
prices
prices
Auto
Construction
BPO
Increase in Oil Increase in Oil Increase in Oil
prices
prices
prices
Petro products
Construction
Software

Porters approach to industry analysis


(Forces driving industry competition)
Potential
Entrants
Other
Stakeholders

Industry
Competitors/
Rivalry

Suppliers

Substitutes

Buyers

Factors in the Porters model

1.Threat of new entrants


2.Relative power of unions, govts., etc.
3.Bargaining power of buyers
4. Bargaining power of suppliers.
5. Threat of substitute product or services

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