3. External Environment
7 Issues to address:
o Industry Profitability
o Key factors for future success
o Likely moves by Rivals
o Market Positions for members
o Forces driving the changes
o Strength of competitive forces
o Industry Dominant economic features
4. 11 Features to Investigate
Market size & growth
Number of rivals
Scope of rivalry
Number of buyers
Product differentiation
Product innovation
Supply & Demand
conditions
Technological changes
Vertical integration
Economy of scale
Learning and
experience
5. 5 Forces of Porter
Competition
Substitutes
Potential
New
Entrants
Suppliers
Buyers
6. 14 Most Common Driving Forces
Emerging New Internet
Capabilities
Increasing Globalization
Change Long-Term Growth Rate
Change in Buyers behaviours
Product Innovation
Technological change in Mfg
Marketing Innovation
Entry/Exit of Major firms
Diffusion of Tech know-how
Changes in Cost/Efficiency
Shift from Low Cost to
Differentiated in industry
Reduction in Risk/Uncertainty
Regulatory changes
Changing Societal/Lifestyle
concerns
7. 5 Internal Issues
1. Performance of current
strategy
2. SWOT
3. Competitiveness
4. Strength vs Competitors
5. Highest-priority issues to
Managment
9. Key Performance Objectives
Speed
o Customer Query time
o Order Leadtime
Dependability
o % of orders delivered late
Flexibility
o Time needed to develop Products & Services
Quality
o Number of defects per unit
Cost
o Efficiency
11. 4 types of Financial Ratios
Liquidity Ratios
o Current Ratio
o Quick Ratio
Activity Ratios
o Inventory Ratios
o A/R Turnovers
o Days in A/R
Leverage Ratios
o Debt Ratios
o Time-interest-earned Ratios
Profitability Ratios
o Rate of return on net sales
o Rate of return on assets