STRATEGIC MANAGEMENT

THE EXTERNAL ENVIRONMENTAL ANALYSIS THE GENERAL ENVIRONMENT FACTORS :  P    E    S    T    E    L  P - Politic factors E - Economic factors S - Social-cultural factors T - Technological factors E - Environment factors L - Legal factors THE INDUSTRY ENVIRONMENT FACTORS : MICHAEL PORTER'S FIVE FORCES MODEL 1.      Threat of New Entrants 2.      Bargaining Power of Suppliers 3.      Bargaining Power of Buyers 4.      Substitute Products 5.      Rivalry Among Competitors THE INTERNAL ENVIRONMENTAL ANALYSIS MANAGEMENT : Management is a process of coordinating activities, which comprises of five functions : planning organizing motivating staffing controlling  MARKETING : Marketing is the exchange of products or services from the producer to the user, starti...

COMPETITIVE ADVANTAGE : Competitive advantage is defined as anything that a firm does exceptionally well compared to its rivals. A company's competitive advantage may be its superior customer service, innovative products, strong distribution channels and low pricing. For example :- Strong research and innovation = Apple Brand popularity = Coca-Cola Superior products/strong customer support = IKEA Low pricing = Air Asia Speed and time = Domino's Pizza, FedEx RESOURCE-BASED VIEW : Resource-based view (RBV) states that a firm's internal resources such as skill, financial resources, human resources and sustaining a company's competitive advantage. INDUSTRIAL/ORGANIZATIONAL VIEW : The industry in which the firm chooses to compete has a stronger influence on the firm's performance than the firm's internal resources such as management marketing or finance. In other word, I/O view is the external factors. A RESOURCES WOULD BE CONSIDERED AS U...