Chapter2: External environment: Opportunities, Threats, Industry competition, and Competitor Analysis

Terms in this set (22)

Demographic segment : concerned with population's size, age structure, geographic distribution, ethnic mix and income distribution

Economic Segment : nature and direction of the economy in which a firm competes or may compete.

( firms generally want stable economy with Strong growth potential)

Firms must scan, observe, forecast, assess. health of host nation as well as economies outside it.

Political/Legal Segment : arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies.

(how firms try to influence governments - lobbying)

ex: state of Nevada legalized online poker/gambling. MGM tried to decide if this was good opportunity, because nevada was too small of a state to provide online market.

Socio-cultural segment - Society's attitudes and cultural values.

Technological Segment : institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes, and materials

Global Segment : includes relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets

Sustainable Physical Environment Segment: potential and actual changes in the physical environment and business practices that are intended to positively respond to those changes with the intent of creating a sustainable environment.

( renewable energy - walmart planned for their entire operation)