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
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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