Research questions:
1. how How do micro-environmental factors influence strategic decision-making in
2. Explain the different dimensions we can use to assess performance. Specifically, describe
what we mean by and how we measure.
3. To clarify the key concepts for our next session, please prepare to discuss the following:
"What are the distinct differences between the terms onsumer, Client and costumer? "
4. What are the tools that we use to analyse the environment (definition, and clear explanation
of each one)?
Answers :
1- Lets start with the key of micro-enviroment which is:
Suppliers: strategic decisions must account for supplier relationships, and suply chain
management because, they are a resources for the companies their pricing and
reliability influence directly production costs and prduct quality also delivery
timeliness. So they are an important side of the micro enviroment.
Customers : the company must decide which custemer segments to target so they can
understand more the customers needs and preferences closer, and working on pricing
strategies and marketing approaches.
Competitors : the company needs to analyze their competitors in the market sot hey
can know their weaknesses and strategies to make informed decisions to make our
place in the market. search about product innovation,and competitive advantage.
Stakeholders : is the employees, local communities and people, to reply to their
expectations, demands, and support. We must balance interestes woth the decisions
making.
So finally we can see that all this factors create constraits and opportunities that the
companies and their management must navigate. To have a powerful suppliers might
force the company to seek alternative sources or vertically integrate.
2- dimensions we can use to assess performance :
We can talk about 4important dimensions, financial performance which can measures monetary
outcomesand economic health. Theres some indicators like net profit margin,return on investment,
return on investement, and return equity, it show whether the company is generating adequate
returns for investors and sustaining financial viability.
Also operational performance, here we talk about productivity ratios (output per,employee,asset
turnover), quality metrics( defect rates,cusomer complaints), cycle time, and capacity.
Market performance and strategic performance, here we can talk about market share, customer
acquisition rates, band awareness, customer satisfaction scores. And innovation metrics, growth in
target markets, and finally strategic posotioning indicators.
Now, how we measure this dimension, based on specific key performance indicators, KPIs like
select relevant KPIs, collect data about financial situation production systems for operational data,
costomer surveys for market data…
Calculate the metrics, compare and interpret, track trends and take actions.
3- What are the distinct differences between the terms consumer, Client and costumer ?
Market
consumer: the end-user Client: relationship-based Costumer: is the person
who actually uses or interaction with the or entity that purchases a
consumes a product or service provider, we called product or service.
service. someone client when he xchange money for goods
Exemple :a sister buys a t- receives professional or services.
short for her brother, here services and often has an
the customer is the sister ongoing.
but the consumer is the
brother.
4- What are the tools that we use to analyse the environment (definition, and clear explanation
of each one) :
We will start with PESTEL ANALYSIS-one oft he important tools examines macro-
enviromental factors that englobe six
dimentions :political,economic,social,technologie,environment, and legal. All this dimentions
in this tool help to identify external opportunities and threats beyond the organization´s
control.
Political factors Government stability, Trade restrictions and tariffs,
Corruption levels, Foreign trade policies.
Economic factors GDP growth, Inflation and interest rates,
Unemployment levels, Stage of the business cycle, Cost
of living.
Social factors Cultural attitudes and norms, Lifestyle changes and
trends, Education levels, Health consciousness, Social
mobility.
Technological factors Research and Development (R&D) activity, Digital
transformation trends, Cybersecurity concerns,
Technology adoption rates.
Environemental factors Climate change and global warming, Water scarcity,
Pollution regulations, Sustainable resource availability.
Legal factors Consumer protection laws,Employment and labor laws,
Product safety standards, International trade laws.
Porter`s five forces : its a strategic framework developed by micheal porter, in 1979,this tool
is for analizes industry competitiveness , and also the competitivw internsity and
attractiveness of an industry through five forces ,this model helps prganizations to understand
their competitive position and develop effective strategies.
THREAT OF NEW ENTRANTS Capital Requirements, Economies of Scale,
Brand Loyalty and Switching Costs…
BARGAINING POWER OF SUPPLIERS Supplier Concentration, Uniqueness of
Product, Switching Costs ,Lack of Substitute
Inputs…
BARGAINING POWER OF BUYERS Buyer Concentration, Purchase Volume,
(Customers) Product Standardization…
THREAT OF SUBSTITUTE PRODUCTS Switching Costs, Buyer Propensity to
OR SERVICES Substitute, Perceived Level of
Differentiation…
RIVALRY AMONG EXISTING Industry Growth Rate, High Fixed Costs,
COMPETITORS High Exit Barriers…
Swot analysis : its a classic tool who evaluates four dimensions, Strengths (internal
capabilities and advantages), Weaknesses (internal limitations and disadvantages),
Opportunities (external favorable conditions). In this method we threats external challenges
and risks.
Value chain analysis :dividing the organization`s activities into primary activities like inbound
logistics, operations, outbound logistics, marketing and sales, service and also support
activities like firm infrastructure and human resourcs management, and technology.
It identifies where the company creates value and where improvements can be made.