Management Chapter 4

• Strategic Analysis: the process that firms use to study and understand the many different layers and aspects of their competitive environment
• PESTEL:

  Political

  Economical

  Socio-cultural

  Technological

  Environmental

  Legal
• Porters 5 forces:

  1. Industry rivalry
  2. Threat of new entrants
  3. Threat of substitutes
  4. Supplier power
  5. Buyer power
• Internal Environment: Resources, capabilities, the value chain
• VRIO:

  Value

  Rarity

  Imitation

  Organization
• Generic business-level strategies:

  1. Cost Leadership
  2. Differentiation
  3. Niche