Beruflich Dokumente
Kultur Dokumente
By
Dr. Raafat Youssef
Exam hint
The new assessment is exam only (there is no
longer an assignment option).
b. Common objectives
The Internal
Political Environment Customers Economic
legal forces
Suppliers Production,
forces
Finance, R & D
Personnel
Other
stakeholders Competitors
Social
Cultural
forces Intermediaries
Technological
forces
Micro-environment:
The factors that the organization will have an
influence over
Macro-environment:
The factors that will have an impact on the
organization but the organization can not control
Ways of classifying organizations
1-Size : small & large
2-Legal status :
Sole trader
partnership
limited
public limited
3-Ownership :
private
public
co-operatives
Ways of classifying organizations
4-Profit : profit oriented & non profit oriented
Def of SME:
Organizations with less than 250 employees
Advantages of small companies
1-Less bureaucracy quick response to
customers
1-Large resources
2-Economy of scale
2- informal:
Social group who interact with each other
without a designed manner from the
organization
Formal Informal
Formal constitution Spontaneous
Planned division of Loose structure
responsibility
Defined communication Flexibility
channels
Controlled by power No control
Authority, responsibility,
accountability & delegation
Authority
-It is the right to do something
Responsibility
-It is the formal obligation to do something
Accountability
-The individual duty to inform his superior how he
has fulfilled his responsibilities
Delegation
-It is the process in which a superior gives a
subordinate the authority to carry out a given
aspect of his own task
Legal status
1- Sole traders
2- Partnership
3- Limited companies
Strengths:
1-Unlimited liability
Strengths:
1-Unlimited liability
- Limited liability
1-Limited liability
4-High resources
Limited companies
Limitations:
1-Greater formalities
3-Less flexible
1-Economy of scale
3-More efficient
2-Bureaucratic culture
2-Customer orientation
Advantages of Franchises:
1-Easier to raise capital as using known name
2-Avoid administrative set up costs
3-Avoid initial marketing costs
4-Can use franchisor’s marketing resources
Non commercial organizations
1- Trade unions
1. Trusted by users
2. Dedicated staff
3. No conflict between profit and social objectives
4. Answer social needs
Non commercial organizations
Limitations:
Informal economy:
-Garment workers working from their homes
-Domestic labor such as childcare and cooking
-Do it yourself activities like gardening ,
maintenance and repair
Economy
An economy is made up of three parts:
Internal reasons:
1- Type of organization
2- Resources available
3- Major shareholders
External reasons:
1- Competitor activity
2- Customer needs
Types:
1- Internal economy of scale
2- External economy of scale
Internal economy of scale
-Technical
-Commercial (marketing)
-Financial
Organizations (6/99)
A-Using a representative explain the strengths and
weaknesses of one of the followings
1-A voluntary sector organization
2-A private sector organization (10 marks)
-Purpose
-Strategy
-Value
-Policies
Mission
Our Mission
By connecting people, we help fulfill a
fundamental human need for social
connections and contact. Nokia builds bridges
between people – both when they are far apart
and face-to-face – and also bridges the gap
between people and the information they need
Mission Statement Examples
Microsoft: “Help people & businesses throughout
the world realize their full potential.”
- Public relations
- Generalized mission
Criteria of good mission statement
-Brief & easy to understand
-Clear
“A PC with windows
software on every
desk”
Vision
It is the future state of the organization
- Realistic - Unrealistic
-Classification
Primary versus secondary
S --------- Specific
M--------- Measurable
A --------- Achievable
R --------- Relevant
T --------- Timed
Objectives
- Profit and profit maximization
- Survival
- Market share
- ROI , ROCE
- EPS
- Growth
- Quality
- Added value
Profitability
-Profit = revenue – cost
2-Cost reduction
3-Innovative products
Survival ( Drucker)
-This is the basic drive in all businesses
-Japanese people accept cuts in their salaries
- Survival:
To survive provide the market with economic product
To survive you have to innovate
To survive your business must be profitable
To survive you have to predict the market social climate
Growth
EPS
Earning per share
Influences on objectives
Internal External
- Senior management -Key stakeholder
- Resources -Competitive environment
- Key shareholder -Change in government
- Past successes -Technology
- The degree of risk
System approach to organizations
- It is a complex consisting of many
interdependent parts
- Types
Closed
Semi-closed
Open
Stakeholder
-People with interest in the activities of the
organization
- Types
=Internal
=External
=Connected
System reaction to environmental
changes
-Scenario thinking
Marketing & business orientation
1- Functional (production) orientation
2- Sales orientation
3- Marketing orientation
Virtual organization
-Connection between different employees located at
different locations
-Acceptance
-Indifference
-Passive resistance
-Active resistance
Coping with change
1. Environmental intelligence
2. Forecasting change
4. Marketing change
=Product price
=Other products prices
=Income
=Tastes , fashion
=Customer expectations
Substitutes versus complements
-Price
-Production cost
-Changes in technology
-Natural factors
-Prices of other goods
Data , information & knowledge
- Data classification
Primary data Secondary data
Data collected for Data already exist
specific purpose
2- Non governmental:
-Professional institutions
-Libraries
-Year books
-Trade journals
-Market research journals
Ideal data
Criteria
-Recent
-Complete
-Documented
-Credible
-Relevant
-Cost effective
Field research techniques
1-Observation
2-Experimentation
3-Survey
Sources of data about micro-
environment
Internal
-Sales reports ,customer complaints ,minutes of
meetings ,newsletters & intranet
External
-Internet ,published data ,governmental statistics
,exhibitions , newspapers & trade journals
Market intelligence
(Environmental auditing)
-It is a way of analyzing & auditing the market
-Sources
=Academic journals
=Conferences & exhibitions
=Newspapers
=Sales force feedback
=Monitoring competitors
Competitor intelligence system
Data sources:
-Customers
-Suppliers
-Competitors former employees
-Mystery shopping
Session 5
Stakeholders
Stakeholders
-Classification:
Internal
Connected (SSCC)
External
Stakeholder mapping (Mendelow)
A B
(taxpayer) (local residents)
C D
(government) (quality assessors)
Implications of stakeholder mapping
1-Stakeholder power & interest must be recognized
& put in consideration
- If dissatisfied
=Limit or withdraw credit facilities
=Change the interest rate
Suppliers
-They look for
=Regular supply schedule
=Timely payment
-Unsatisfied supplier
=low quality products
=reduce priority
=supply competitors
=Forward integration
Distributors
-Dissatisfied distributor
=Stock competing products
=Delay payment
=Backward integration
Consumers
-Pay money for value
-The main customer needs are QSP
-Customer value equation
-Factors limiting the customer bargaining power
=limited knowledge , limited competition
=binding contract
=innovation
Customers
-They look for ???????????
-Unsatisfied customer
=reduce purchase
=go to the competition
=complaining
=press for legislation
Microsoft believes in leading the market by
following the customer
External stakeholders
1-Government
Government bodies are interested in the activities
of commercial organizations :
3-Professional bodies
4-Pressure groups
Some definitions
Capitalism (free market economy)
-It is the economic system predominated by
supply & demand and not by the state
Remuneration
-It is paying for effort
Redress
-Compensation for loss or injury
Stakeholders
For an organization of your choice
A-identify the main stakeholders of that
organization and briefly explain their significance
(12 marks)
-Characteristics :
=Defend certain interests
=Exert pressure for their own purposes
=Influence government decisions
=No political participation
Pressure Groups
Can be categorised as sectional (interest) or
promotion/cause
Have specific common interests or attitudes
Exert pressure on people, organizations or
government for their own specific purpose
Seek to influence the context of government
decisions
Do not seek election and are not political
parties
Exercise pressure to secure favorable
decisions and prevent undesirable ones
Pressure group classification
Interest Promotional (issue)
-Section of society -Promote certain issue
-Example: -Example:
Royal college of physicians Animal rights
Other classification
1-Insider groups
2- Outsider groups
4-Direct action
Reactions of businesses towards pressure groups
1-Ignorance
2-Neotiation
Threat
of new
Entrants
Power Power
of of
Suppliers Customers
The threat of new entrant
-They will bring extra-capacity
- They have to make an investment to break the
market
2-Differentiation
3-Focus (niching)
Cost leadership
-Price competition
-Entry barriers
-Walamrt
Differentiation
-Building competitive edge
-IBM
Focus
-Concentrate on one or more segment
-Perfect competition
Large number of firms
Each with very small market share
Homogenous product
Free information exchange
Free entry
Free exit
Concentrated industry
It is dominated by small number of large firms
which are able to influence the market as whole
-It arises where the largest 4 or 5 firms account for
perhaps 70%of the total sales of the market
Oligopoly
-The market is dominated by few suppliers
-One firm can not set price without considering
other competitors
-Collusion is an attractive option
-Oligopolists tend to avoid the use of price as a
competitive weapon
Strengths of a cartel
-Faster growth of the industry
-Maintaining quality standards
Examples:
OPEC ……….. Oil (Organization of the Petroleum Exporting Countries)
IATA …………..Airlines (international air transport association)
De Beers ……..Diamond
Regulation of competition
1-Competition act 1998(U.K)
-Definition of micro-environment
-Diagram
-Example
-Approaches: SWOT – 5 forces model
-Sources (internal and external)
Session 8
The Macro-environment
Macro-environment : PESTEL
P Political
E Economic
S Socio-cultural
T Technological
E Ecological
L Legal
Sources of environmental information
-They are either
1- External
or
2- Internal
Macro-environment frame:
Area Factors
Sociological demography-lifestyle-education-social class-
attitudes-reference groups
Legal Competition law – employment law –customer
protection law –environmental protection law –
contract law
Economic Business cycles –exchange rate –interest rate –
inflation rate –GNP trends
Political Taxation –pressure group –political orientation –
trade union strength
Technological Technological advances
4-Empty nesters
Social class
-Class A ---- upper middle class
-Class B ---- middle class
-Class C1 ---- lower middle
-Class C2----- skilled workers
-Class D ----- unskilled workers
-Class E ----- unemployed & pensions
BEHAVIOUR
ARTEFACTS Observable
RITUALS
VALUES &
BELIEFS Non
observable
Culture
1-Beliefs & values
-The way we feel anything
2-Customs
-e.g. division of labour in a household
3-Mores
-Customs with strong moral overtone e.g.
prostitution
4-conventions
-Norms regarding every day conduct e.g.
etiquette
Culture
5-Artefacts
-Physical tools e.g. dress codes , logo
6-Rituals
-Symbolic meaning e.g. greeting behaviors
7-Heros
- e.g. Bill Gates
Subcultures
Culture is subdivided into subcultures according to:
1-Social class
2-Ethnic group
3-Religion
4-Geography
5-Age
6-Sex
7-Work
Socio-cultural environment
During the 1994 soccer world cup both
McDonald’s and Coca-Cola made a mistake of
reprinting the Saudi Arabian flag (which includes
sacred words from the Koran ) on disposable
packaging used in promotions
Understanding culture
1-Marketers should adapt products
McDonald’s sells a
vegetarian Maharaja
Mac instead of Big Mac
in India
Lifestyle
-It is the pattern in which people live and spend
their time and money
-Healthy lifestyle
-Islamic movement
-Veilation
-Need for fast products
-Clothing has become more casual, especially at work
-Time spent watching television has declined
-Money rich time poor
-Coastal areas
Lifestyle
According to the University of Cambridge,
one lifestyle choice that could add 11 years to
the life expectancy of thousands of people
involves giving up smoking while eating five
portions of fruit and vegetables a day and
taking moderate daily exercise. Every bit of
positive activity has a measurable impact on
health so even McDonald’s is making a
contribution following its new emphasis on
‘healthy eating’. Sales are up between seven
and nine per cent in the United States and
Europe as a result of its new strategy,
although it still sells eight double
cheeseburgers for every salad.
Reference groups
Conformity:
- GDP= C+I+G+X
Savings (S)
Households
Income (Y)
(C) Consumption
Firms
Economic objectives
Advantages of growth:
+ Raises the standard of living
+ Economic welfare
Disadvantages of growth:
+ Faster use of resources
+ Pollution
Unemployment
Types:
1- Frictional
2- Seasonal
3- Structural
4- Technological
5- Cyclic
Unemployment
Results of unemployment
-Loss of output
-Loss of human capital (skills)
-Increase inequality in the income distribution
-Social impacts
Hyperinflation
-A rise in the price level of a thousand or a million
percent a year
Types (causes) of inflation
4-Expectational inflation
Results of inflation
1- Fall of value of money
2- Uncertainty about future prices
3- Redistribution of income wealth
4- Consumers will be price sensitive
5- Taxation rises
6- Frequent price changes
e.g continuous adjustment to packaging----
customer upset
7- Price war
Control of inflation
1-Demand pull inflation
-Higher taxation ---- cuts consumer spending
-Higher interest rates
2-Cost push inflation
-Deregulate labor market
-Encourage greater productivity
-Control over wages & prices
3-Import cost push inflation
-Reduce quantities or price of imports
4-Expectational inflation
-Clear policies
Stages of the Business Cycle
Activity
level Upper turning point
Boom
Trend line
Recovery Downturn
Recession Recession
Lower turning
point
0 Time
General Economic Conditions
Business cycle: fluctuations in the economy
that follow the general pattern of prosperity,
recession, depression and recovery.
Prosperity: A period during which
unemployment is low and total income is
relatively high.
Recession: A period during which
unemployment rises and total buying power
declines.
Depression: A period during which
unemployment is extremely high, wages are
very low, total disposable income is at a
minimum and consumers lack confidence in
the economy.
Recovery: The stage of the business cycle
in which the economy moves from
depression or recession to prosperity.
Economic policies
1-Fiscal policies
2-Monetary policies
4-Physical policies
5-Trade policies
Fiscal policy
1-Taxation
-Direct taxes
-Indirect taxes
2-Government expenditures
-Government purchases – goods , services ,
construction of roads
Methods
-Training to improve jobs
-Stimulation of innovation
-Privatization
International environment
-Comparative advantage
-Methods
Trade blocs
-Group of countries which come together to make
trade easier within each of them
-Interest rates
-Exchange rate
-Regulation (Legislation)
2-Market failure:
The state ensures healthy competition to prevent market
failure
Political party
It is an organization whose members
-Have some shared values or interests
-Have a vision about the best way to run the society
-Work as a team to ensure that they achieve control
over policy making
-They aim to take over the whole government
+Deregulation:
It is the removal of rules and requirements restricting
competition
Political framework
Political systems are:
Totalarianism (Autocracy) – Democracy
Totalarianism Democracy
Single leader Universal suffrage
One ruling party Periodic free elections
Official ideology rules Freedom of speech/media
Opposition parties repressed Open political competition
Power is concentrated Power spread throughout
society
Minorities persecuted Pressure groups free to
lobby between elections
Impact of Legislation
Contract
Patents
Consumer Credit Data Protection
Company Law
BUSINESS Trademarks
Environmental
Protection
Trade descriptions
Consumer lobby
It is individuals or groups who exert their social
,economic and moral pressures on organizations with
a view of changing their behaviors in ways favourable
to the consumer
Objectives of Consumer lobby
Trademark:
Words, symbols, name or mark attached to a
brand name
Copyright :
Protection of the authors ,artists from being
deprived of their rewards by unauthorized
copying of their works
Quasi law (voluntary code of conduct)
-It is a statement of standards of practice set by
group of organizations
-The codes do not have the force of law
-They help raising the industry standards
-They offer quicker and cheaper means to resolve
disputes
-The organizations are willing to follow it why????
Impacts of legislation on business
Negative impacts
-Extra-cost : training staff , reporting
-Insurance cost
Impacts of legislation on business
Positive impacts
-Correct market failure through regulation of
competition
Pricing issues:
Price discrimination( place, person & time)
Active collusion among suppliers to fix prices.
Predatory pricing (established suppliers utilise their cash reserves
& economies of scale to sell at prices the newcomer cannot
match & still make a profit)
Social cost ,private cost
Private cost
-It measures the cost to the firm of the resources it uses to
produce a good
Social cost
-It measures the cost to society as a whole of the resources
that a firm uses
Private benefit
-It measures the benefit obtained directly by a supplier or a
consumer
Social benefit
-It measures the total benefit obtained both directly by a
supplier or a consumer & indirectly to other suppliers or
consumers
+ Externality: It is the difference between the private &social
cost or benefits arising from an activity
Public goods e.g. defence or justice
-It is a good whose benefits can not be restricted to particular
customers
-Consumption of a good is non rivalrous meaning that
consumption by one person does not deprive others of the
good
Merit goods e.g. education
-They are considered to be worth providing in greater volume
than would be purchased in a free market because higher
consumption is in the long term public interest
Demerit goods e.g. Tobacco
Governments want to see less consumption of certain demerit
goods
Pollution strategies
Green tax:
It is the tax paid by organizations to compensate the society for
pollution produced
Government fees:
Fee paid by firms charging for waste disposed materials
Government regulations:
Tradable permits:
The government issues pollution permits to each company for
a certain price
Every company will try to reduce its pollution to decrease cost
paid to permits
Advantages of green marketing
1-It became a major marketing tool
4-Lack of visibility
5-Timescale
Impact of car industry on the environment
1-Ecological environment
-Global warming
-Pollution
-Effect on certain animal species
-Depletion of natural resources
2-Social environment
-Motor car increases the level of division within society with
car owners having more life opportunities open than non
car owners
-Shopping is difficult for non car owners
Impact of car industry on the environment
3-Economic
-New car sales account for a significant proportion of GDP
4-Political
-Car supporters link cars to social freedom of choice
Session 13
Technical environment
Technology
-Apparatus : Tools & machines
Marketer role
-To convince customers with the new technology
-Enhancing rapid adoption of the technology
-Use the proper marketing mix
The effect of technology on the marketing mix
Product
-CAD
Price
-Customers may pay more for a new innovation
Place
-E –commerce
-EPOS
Promotion
-Databases
-Internet & intranet
-Extranet
Developments in technology
1. Internet, intranet & extranet
2. EDI = Electronic data interchange
3. Web site – E mail - voice mail
4. Call centers- V. Rep (virtual rep )
5. WAP = Wireless application protocol
6. EPOS=Electronic point of sale – RFID (Radio-frequency identification)
7. EFTPOS =Electronic fund transfer at the point of sale
8. Databases
9. Internet fridge
10. Toilet
11. Mobile communications
12. PDA = Personal digital assistant
13. Digital TV
14. Video-conferences
EPOS & EFTPOS
EPOS
-Large retails
-Barcodes
- e.g. P&G
EFTPOS
-Used for electronic transfer of funds at the point of
sale
-Plastic cards
EDI=Electronic data interchange
-It is a form of computer to computer data
interchange and so another form of electronic
mail
-It will save resources like paper
Difficulties of EDI
-Expensive
-2 specific computers
-Time differences
Internet
Current uses of the net
-Dissemination of information
-Product development through test marketing
-Transaction processing
-Relationship enhancement between stakeholder
-Recruitment
-Entertainment
Website
-A site is a collection of web pages providing information
Features of effective website
-Speedily downloading
-Rapid response
-Continuous updating
-24 hours
-Attractive
-Easy visiting
-Interactive & easily customized
-Good use of sound & vision media
-Links to related sites
Drawbacks of website
-Some websites are not personalized
-Navigation of site being difficult
-Too much loading time
-Lack of focus on developing customer relations
-Lack of website address on products
Intranet
-Internal internet
-It is used to link company departments ,
employees and databases
-Resources
-No space occupying like bulky paper documents
-Easy update
Extranet
-External internet
-External link with suppliers , customers….etc
-It is similar to EDI with some differences
Commercial use of the internet
Marketing
-Product awareness
-Prices comparison
Sales
-E-commerce
Distribution
-used to get certain products directly into people’s home
Problems of the internet
1-Cost
2-Weak infrastructure
3-Security issues
4-Viruses
E-mail = Electronic mail
-Substitute for letters or faxes
-Sender has a documentary evidence
-No disturbance to the receiver
-Password
Voice mail
-System that enables caller’s message to be
recorded at the recipients voice mail box
-It requires only a telephone
Fax
-Recent changes to fax machines
-Pc with fax modem
Computer telephony integration CTI
- CTI are systems used to gather information about
callers such as their telephone number &
customer account number or demographic
information
(5 marks)
Technology & Porter 5 force model
New entrant
-IT increases entry costs
Bargaining power of suppliers
-Supplier power may be eroded
Bargaining power of customers
-IT increases customer power
Substitutes
-IT may be the substitute
-IT adds value to the existing goods
Rivalry
-IT can be used to differentiate products
-IT can be used to support cost leadership
Technological diffusion process
Factors which determine if the rate is rapid or slow are
1-Profitability
2-Deterrence :consequences of not adapting the new
technology
3-Market structure : oligopoly
4-Characteristics of the new product
5-Enviromental acceptability
6-Scale of investment :the higher investment the
slower the diffusion
Session 14
Environmental challenges
Changes in the micro-environment
Social changes
-Rising standards of living
-Society’s attitude to business --- increased
tendency towards social responsibility
-Workforce: decline in blue collar & increase in
management proportion
Technological change & organizational activities
-Type of products sold e.g. computers , compact dishes
-The way in which products are made
-the way in which services are provided --- EPOS
-The way in which market is identified e.g. database
Changes in the employment pattern
1. Flexible working hours
2. Increased use of part timers
3. Increase in temps
4. Home working
5. Self employment
6. Knowledge workers
Home working (Tele-working)
Advantages to the organization
-Cost saving
-The concept itself attracts a large pool of applicants
-No need to pay sick & holiday pay
- B2C
- C2B
- C2C
- P2P
Problems of E-commerce
1. Difficult management of E-commerce
2. Lack of trust
3. Fear of privacy invasion
4. Fear of the abuse of credit cards
Single European market
It leads to :
1. Removal of physical barriers
2. Creation of technical standards
3. Absence of governmental discrimination
4. Increased use of tele- communication
5. Free financial services in any country
6. Free movement of the capital
7. Unified matters for consumer protection
Single European market
Obstacles
-Company taxation
-Differences in infrastructure
European monetary union (EMU)
Monetary union:
Economic union
-It is unrestricted common market for trade with
some economic policy coordination between
different regions in the union
EMU
It leads to :
1. Common currency
1. Economy of scale
2. Saturation of national markets
3. Counteract seasonal national variation
4. Economic cooperation
5. Elimination of physical elements
6. Some organizations e.g. WTO
7. Economic convergence
8. Intense competition in the local markets
9. Extension of product life cycle
Strategies to enter the global market
-Export
-Licensing
-Joint – ventures
-Direct investment
Session 15
Marketing information system
Data
Information
Knowledge
Marketing research
It is the systematic gathering , recording
and analysis of data about problems
relating to the marketing of goods and
services
Marketing research
1-Market
2-Product
3-Price
4-Promotion
5-Distrutition
Research process
DODCAR
2-Secondary:
-Existing data at the organization
-Published information
-Bought in market research information
-internet
Internet
-Go directly to the site
-Directory or portal
-Search engines
Primary versus secondary data
- Advantages
- Disadvantages
Customer databases
-It is a manual or computerized source of data
relevant to marketing decision making about an
organization’s customers
Int.
Marketing Marketing
Ext. Ext.
Intelligence Research
System Decision System
Making
Ext.
Analytical Marketing
Decision Support System
Marketing information system
1-Internal records
2-Marketing intelligence system
3-Marketing research system
4-Analytical marketing systems
Session 16
Information system & change
Scenario & forecasts (3/2003)
Scenario is a view of the future based on a
group of determinants
Executive User’s
Opinion Expectation Test Market Regression
Naive Trend
Sales Force Build-to-
Composite Order
Moving Exponential
Average Smoothing
SALES FORECASTING
METHODS
Two categories of sales forecasting methods exist:
• Survey methods
are qualitative and include executive opinion, sales
force composite, and customer’s intention surveys.
• Mathematical methods
are test markets, market factors, naïve models,
trend analysis, and correlation analysis.
SURVEY FORECASTING METHODS
A-Executive forecasting:
A qualitative sales –forecasting method done by an
individual
B-Delphi Method
Administering a series of questionnaires to panels of
experts.
2-Sales Force Composite
1-Test markets
3-Regression analysis
Test markets
-Test markets are a popular method of measuring consumer
acceptance of new products
1 200
2 250
3 300 750
4 350 900 300
5 450 1100 ( 3) = 366.6
6 ?
Period 6 Forecast =
366.6
Exponential Smoothing
Next Year’s Sales = a (This Year’s Sales) + (1-a) (This Year’s Forecast)
- A is weighting factor and is selected arbitrary usually between 0.1 to 0.5 not less
than zero and not more than 1
Regression Analysis
0 Sales
0
Population Population
(A) (B)
GUIDE TO FORECASTING
FORCASTING MATHEMATICAL COMPUTER
METHOD TIME SPAN SOPHISTICATION NEED ACCURACY
Delphi Method Medium to long Minimal Not essential Limited; good in dynamic
conditions
Sales Force Short to medium Minimal Not essential Accurate under dynamic
Composite conditions
User’s Expectations Short to medium Minimal Not essential Limited
-It should be
Periodic
Comprehensive
Systematic
SWOT
Strengths
Weaknesses
Opportunities
Threats
Impact analysis(12/2003)
-It is used to analyze the effect of future
environmental factors on the business
-Types
1-Competitor analysis
2-Business impact analysis
3-Trend impact analysis
4-Cross analysis