General Environmental Trends:

Different Industries, Different Effects

Environmental
Trend
Positive effect on

Limited effect
on
Negative effect
on Compe11ve/ Task environment
SOCIO-CULTURAL
Aging population Medical services Schools
Steel
More working Convenience and Home baking
women Foods Plastics Supplies
industries
Growing health Exercise Red meat
consciousness equipment products
TECHNOLOGICAL
Internet Online retailers Agriculture Physical stores
ECONOMIC
Declining interest Property Prescription Banks
rates drugs

Economic Bankruptcy law Grocery stores Most

downturn Job agencies Toilet paper industries
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The questions you ask yourself as a manager

(Exis1ng) Compe1tors
organizaGons that produce (Exis1ng) Compe1tors
Suppliers are individuals and goods and services similar to a 1.How intense is the rivalry
companies that provide an parGcular goods and services. 1. What is the bargaining power amongst exisGng compeGtors?
organizaGon with the input of our suppliers?
CompeGtors 2. What is the current trend? Poten1al compe1tors
resources (e.g. raw materials, Poten1al compe1tors are CompeGtors
nance, labor) that it needs to organizaGons that are not Global outsourcing 1.What is the likelihood for
produce goods and services presently in the task threats of new entrants?
environment but could enter if 2.How high are the barriers to
they choose. entry?


An organizaGons An organizaGons
Buyers Suppliers Buyers

Suppliers task environment task environment

Customers are individuals and 1. What are current trends?

Subs1tutes are new tech/ SubsGtutes groups that buy the goods and SubsGtutes 2. What is the bargaining
services that an organizaGon What is the likelihood that some power of our customers?
products that can replace the new tech/products will replace
current tech/products/services. produces
our current tech/products?

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