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External Environment and Business Level Strategy

1 - While performing an external environmental analysis how important is it to use all four components and why? Explain your reasoning.

2 - In this week's lesson you learned that the industry environment has a more direct effect on a firm's strategic competitiveness and above-average returns than the general environment. Explain why this is so and discuss ways in which companies can stay abreast of changes that occur in their industry.

3 - Explain the analysis a company must make prior to developing a successful business-level strategy.

4 - Identify one type of business-level strategy and explain how you would use it to increase Above-Average returns in the dairy industry.
See links below:

http://www.dairyfoods.com/

http://www.usda.gov/

Solution Preview

1 - While performing an external environmental analysis how important is it to use all four components and why? Explain your reasoning.
When performing an external environmental analysis it is very important to use all four components. If any component is left out an important factor may be ignored or looked over. For example, if a firm considers the technological factors, political factors, and social factors but does not adequately consider economic factors it may miss its sales forecasts because of weak economy and consequently poor demand. Similarly, if the business ignores the social factors then the business may miss out an important opportunity in the environment.

2 - In this week's lesson you learned that the industry environment has a more direct effect on a firm's strategic competitiveness and above-average returns than the general environment. Explain why this is so and discuss ways in which companies can stay abreast of changes that occur in their industry.
The industry environment has a more direct effect on the ...

Solution Summary

The response provides you a structured explanation of how firms develop strategic competitiveness and earn above average returns . It also gives you the relevant references.

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