Explore BrainMass

Explore BrainMass

    Strategic Management.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. Remote Environment - Factors in the remote environment help inform decision making. Which are most important among the economic, technological, social and demographic, political and ecological segments? What competitive forces shape industry environmental dynamics? What do characteristics of enterprise competitive position, customer profile analysis, and human resource availability, reveal about the operating environment?

    3. Innovators are observers; they watch the world carefully. How important is observation skill for organizations that are focused creating new markets with growth innovation?

    4. Explain why anticipating customer needs can be challenging in an aerospace manufacturing industry? How can these organizations meet their customer needs?

    © BrainMass Inc. brainmass.com June 4, 2020, 5:13 am ad1c9bdddf
    https://brainmass.com/business/strategic-planning/strategic-management-606803

    Solution Preview

    The response addresses the query is posted in 1221 words with references

    //The remote environment includes social, political, technological ,economic and ecological environment that helps in decision making and are considered as the external environment, therefore, are uncontrollable. In the following discussion, certain effects and characteristics of these forces that help in shaping the business environment are discussed.//
    Remote Environment
    The factors that shape the business decisions are economic, technological, social, demographic, political and ecological. All these help in decision making of a business.
    The competitive forces of the environment are shaped by the five factors known as Porter's five force model (Riley, 2015).
    Threat of New Entry: Industry is also threatened by the new entry as when a new entrant will enter the market, it will be able to capture a good market share if its products are innovative and there is no entry barrier.
    Bargaining Power of Suppliers: If the firm's suppliers have a good bargaining power, they will be able to sell their raw materials and products at a competitive price (Riley, 2015).
    Bargaining Power of Customers: The profit margin of the industry will be reduced if the customers are able to put pressure to bring the price down or increase the quality of the product being sold.
    Threat of Substitute Products: If the substitutes offer the same satisfaction level to the customers and the customers are willing to switch over to the substitutes, due to its price or quality, it will bring down the profits of the industry.
    Competitive Rivalry: If the competition is high in the industry, it will lead to price war and every competitor will try to bring its price down so as to meet customer requirement and intensive promotion and advertisement will be done to popularize the products (Riley, 2015).
    Operating environment includes both the internal and external environment, which includes competitive position, customer profile analysis, and human resource availability affects the operating environment to a ...

    Solution Summary

    The response addresses the query is posted in 1221 words with references

    $2.19

    ADVERTISEMENT