Strategic Management Lecture 2 Environmental Analysis

PESTEL ANALYSIS:
EG P: Shell oil have a strong relationship with N government
EG E: impact on machine t industry
EG Socio-- Levi S struggled to attract younger generation despite being a huge market player
EG L-Alcohol adverts can't be se or linked with cou

Porter's five forces (19) as a rule, the stronger the five forces, the lower combined pr of participants
-Threat of new entry (product dif)
-threat of su products (threat of ob)
-power of buyers (threaten backward vertical integration into raw materials)
-power of suppliers (threaten forward int into retail)
-threat of rivalry (slow industry growth)

Porters five forces (1979) CRITIQUE: bi of economics over politics, less effective in un industries, static framework, no account of c

Critique against Porter's 5 forces: t, R (1991) believes that even though industry can impact the business, it is
mostly down to the inl organisations. Flaws in the industry are down to 'random dist of especially
high and low performing businesses across in'

Branden and Nal's Value Net (1996) looks at cooperation which Porter ignores. use g theory to show dynamic industries, once you have the 5 segments sorted then identify all the elements in the game.
PARTS of the game:
P (construct relationships)
Added v (measure what everyone brings to the game)
R (structure of the way the game is being played)
Ta (devices to shape players' perception)
Sc (limits and links of the game)

EG Value-net: l invested into the application 'Pro' in the mid-nineties which allowed people to hold video conferences online. Using the value net they found comp companies like telephone companies could sell faster connections to their shared customers and su the cost for Proshare.

Scenario P (Bt, G) 2006 not predictions or extrapolation but a description of current events and their proj into the future, it is a SOCIAL R PROCESS
EG has been known to use this to keep their op open for the future and obs over competitors actions to stay in the lead

COMBINING PESTEL AND SCENARIO PLANNING both recognise level of un, take into account multiple pers, considers range of plausible futures, implications for strategy