Wednesday, 2 October 2013

Third Lecture =)




 Lovely Tuesday.. ^^

                    

In the name of Allah, the beneficent and the merciful...
It's cold and rainy on that day.. =_=
But, all of us were full of passion to follow the lecture ^^

              On that windy day, we were studying the third chapter of the subject about evaluating the company's external environment. It was a brief chapter as it's gave us clear understanding about the real situation in business life. We were revising some of the thing we learn before which is PESTEL analysis. It is quite interesting to understand more about the business through six principal including of Politics, Economics, Socials, Technology, Environment, and Legal and Regulatory factors. This analysis is important to their management department as they made the decision for the firms. The decision they made must base on the strategically relevant issue for their company long-term objectives, strategy and business model.

Then, we learn about 5 vital competitive forces in a business. The 5 forces are developed by Michael E. Potter. It consists of the business rivals, supplier, new entrants, buyer and substitute.

                      
                                       


      We also learned about the the Most Common Drivers of Industry Change which state 12 main factors below:

1)     Changes in the long-term industry growth rate
2)    Increasing globalization
3)    Emerging new internet capabilities and applications
4)    Changes in who buys the product and how they use it
5)    Technological change and manufacturing process innovation
6)    Product  and marketing innovation
7)    Entry or exit major firms
8)    Diffusion of technical know-how across companies and countries
9)    Changes in cost and efficiency
10)  Reductions in uncertainty and business risk
11)   Regulatory influences and government policy changes
12)  Changing societal concerns, attitudes and lifestyles


For the Framework for Competitor Analysis by Michael Porter points four indicators of rivals in term of strategic moves and counter-moves. It is shown above:

                       


Key Success Factors (KSFs)

           Next, we learned about the industry key success factors (KSFs) in business life. It could be define as those competitive factors that most affect industry's ability to survive and prosper in marketplace. It is vital to identify the product attribute in the community.  


   The example gave to us is Nestle whom is originally came from Switzerland. In fact, it was new thing to me..  @_@ 
   The key success for the Nestle Company in Malaysia is they were contributing to the society as it was an approachable way to target the market. Other than that, the company also focused on the health products as their promotion is mentioning about the important of the nutrition foods.
   Last but not least, the HALAL products totally the main key success factors of Nestle in Malaysia as this is an Islamic Country with the majority of Muslim people. 



                  At the end of the class, we got the clear picture of what is company's external environment. =) That's all for today... Wslm...  ^_^

 

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