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Strategic Management Exam 1 - John Launder

Terms in this set (64)

The I/O (Industrial Organization) Model adopts an external perspective to explain that forces outside of the organization represent the dominate influences on a firm's strategic actions.

The general environment is composed of dimensions in the broader society that influence an industry and the firms within it.

The industry environment is the set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms.

The demographic segment is concerned with a population's size, age structure, geographic distribution, ethnic mix, and income distribution
The economic environment refers to the nature and direction of the economy in which a firm competes or may compete.

The political/legal segment is the 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.

The sociocultural segment is concerned with a society's attitudes and cultural values.
The technological segment includes the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes, and materials.

The 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.

The sustainable physical environment segment refers to 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.