Chapter 3

Conclusion

This chapter explains several considerations for examining the external environment that executives must monitor to lead their organizations strategically. Executives must be aware of trends and changes in the general environment, as well as the condition of their specific industry, as elements of both have the potential to change considerably over time. While PESTEL analysis provides a useful framework to understand the general environment, Porter’s five forces analysis is helpful to make sense of an industry’s profit potential. Strategic groups are valuable for understanding close competitors that affect a firm more than other industry members. When executives carefully monitor their organization’s environment using these tools, they greatly increase the chances of their organization being successful.

 

Exercises

  1. In groups of four or five, use the PESTEL framework to identify elements from each factor of the general environment that could have a large effect on your future career.
  2. Use Porter’s five forces analysis to analyze an industry in which you might like to work in the future. Discuss the implications your results may have on the salary potential of jobs in that industry and how that could impact your career plans.

 

Attributions

Figure 3.1:
Subway world map1edit by Nomi887 (http://en.wikipedia.org/wiki/File:Subway_world_map1edit.png) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 3.2:
Tangshan earthquake by The National Oceanic and Atmospheric Administration (http://commons.wikimedia.org/wiki/File:Tangshan_earthquake.jpg) is in the Public Domain

Figure 3.3:
Money by Ervins Strauhmanis (https://www.flickr.com/photos/86530412@N02/8213432552/sizes/l) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Stock market quotes in newspaper by Andreas Polke (https://www.flickr.com/photos/andreas_poike/9761565422/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); Children reading on the couch by San José Library (https://www.flickr.com/photos/sanjoselibrary/2839834669/sizes/l) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (third); Sony Tablet S by Caesar Wong (http://commons.wikimedia.org/wiki/File:Sony_Tablet_S.jpg) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (fourth); Snohomish River 26715 by Walter Siegmund (http://commons.wikimedia.org/wiki/File:Snohomish_River_26715.JPG) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (fifth); 3D Judges Gavel by StockMonkeys (https://www.flickr.com/photos/86530412@N02/8213432552/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (sixth)

Figure 3.4:
Greenpark wind turbine arp by Blast (http://commons.wikimedia.org/wiki/File:Greenpark_wind_turbine_arp.jpg) is in the Public Domain (first); Abolish child slavery by Bain News Service photograph (http://en.wikipedia.org/wiki/File:Abolish_child_slavery.jpg) is in the Public Domain (second); Flag of Canada by E Pluribus Anthony (http://commons.wikimedia.org/wiki/File:Flag_of_Canada.svg) is in the Public Domain (third); Centre Block of the Canadian Parliament August 2005 by Michael Barera (http://commons.wikimedia.org/wiki/File:Centre_Block_of_the_Canadian_Parliament_August_2005.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fourth); pocketchange by Cheryl DeWolfe (https://www.flickr.com/photos/triviaqueen/4925033319/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fifth)

Figure 3.5:
housing by Ben Salter (https://www.flickr.com/photos/ben_salter/2374508372/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Lange-MigrantMother02 by Dorothea Lange (http://commons.wikimedia.org/wiki/File:Lange-MigrantMother02.jpg) is in the Public Domain (second); GDP by LendingMemo.com (https://www.flickr.com/photos/lendingmemo/11698567436/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); a Loonie by S. Rae (https://www.flickr.com/photos/35142635@N05/9277734556/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); Boutique de la rue des Frances Bourgeois 2010 by Francisco Gonzalez (http://commons.wikimedia.org/wiki/File:Boutique_de_la_rue_des_Francs_Bourgeois_2010.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (fifth)

Figure 3.6:
Cupcakes by Joel Olives (https://www.flickr.com/photos/jolives/5026805728/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Hunter and hunter’s rifle by Cano58 (http://commons.wikimedia.org/wiki/File:Hunter_and_hunter%27s_rifle.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (second); Family Photo by James Thompson (https://www.flickr.com/photos/jwthompson2/5072025908/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Bathroom scale by Magnus D (https://www.flickr.com/photos/magnus_d/4850859370/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); Hemline (skirt height) overview chart 1805-2005 by H. Churchyard (http://commons.wikimedia.org/wiki/File:Hemline_(skirt_height)_overview_chart_1805-2005.svg) is in the Public Domain (fifth); ray and my stuff, storage locker, dufferin by Anthony Easton (https://www.flickr.com/photos/pinkmoose/2924835017/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (sixth)

Figure 3.7:
We Can Do It! by J. Howard Miller (http://en.wikipedia.org/wiki/File:We_Can_Do_It!.jpg) is in the Public Domain

Figure 3.8:
Popcorn by Alan Cleaver (https://www.flickr.com/photos/alancleaver/3618369967/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Television by Wikiwoohoo (http://commons.wikimedia.org/wiki/File:Television.png) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (second); Atari 2600 Wood 4Sw Set by Evan-Amos (http://commons.wikimedia.org/wiki/File:Atari-2600-Wood-4Sw-Set.jpg) is in the Public Domain (third); MSI 865PE Neo2-P Motherboard by ProjectManhattan (http://commons.wikimedia.org/wiki/File:MSI_865PE_Neo2-P_motherboard.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fourth); 3PAR SAN in the server room by Alexis Lê-Quôc (http://commons.wikimedia.org/wiki/File:3PAR_SAN_in_the_server_room.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fifth)

Figure 3.9:
Evolution (34 365) by Evolution (http://en.wikipedia.org/wiki/File:Osborne_Executive_with_iPhone_in_2009.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en)

Figure 3.10:
Landfill face by Ashley Felton (http://commons.wikimedia.org/wiki/File:Landfill_face.JPG) is in the Public Domain (first); MD Climate Change Summit by Maryland GovPics (https://www.flickr.com/photos/mdgovpics/9368364513/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); recycling by John Lambert Pearson (https://www.flickr.com/photos/orphanjones/427193721/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); City cut out by Cowboydave 1 (http://commons.wikimedia.org/wiki/File:City_cut_out.jpg) is in the Public Domain (fourth); Organic Produce by Alanthebox (http://commons.wikimedia.org/wiki/File:Organic_Produce.jpg) is used under CC-0 license (http://creativecommons.org/publicdomain/zero/1.0/deed.en) (fifth)

Figure 3.11:
Re-computer by Jakub Jankiewicz (http://commons.wikimedia.org/wiki/File:Re-computer.png) used under CC-0 license (http://creativecommons.org/publicdomain/zero/1.0/deed.en) (first); Competition and Antitrust Law by LexisNexis Canada (http://store.lexisnexis.ca/store/images/bstore/ca/product/165x165_MU_Facey_CompAntiTrust4eStu.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (second); Not Wheelchair Accessible by Carlos Martinez (https://www.flickr.com/photos/kumanday/276903089/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Hard hat 20111111 by Batholith (http://commons.wikimedia.org/wiki/File:Hard_hat_20111111.jpg) is in the Public Domain (fourth); Nutrition facts for the Mega Kat (https://www.flickr.com/photos/doctabu/133321459/) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (fifth)

Figure 3.12:
Pestle and Mortar by Gisela Francisco (https://www.flickr.com/photos/gifrancis/1406171063/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 3.13:
Electric car charging Amsterdam by Ludovic Hirlimann (http://commons.wikimedia.org/wiki/File:Electric_car_charging_Amsterdam.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/2.0/deed.en) (top); Mazda Mazda3 2014 by Karlis Dambrans (https://www.flickr.com/photos/janitors/14249083093/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (left); 2011 Ford F-150 crew cab — NHTSA 2 by US National Highway Traffic Safety Administration (http://commons.wikimedia.org/wiki/File:2011_Ford_F-150_crew_cab_–_NHTSA_2.jpg) is in the Public Domain (middle); Car dealership in Rockville Maryland Jeep by Christopher Ziemnowicz (http://commons.wikimedia.org/wiki/File:Car_dealership_in_Rockville_Maryland_Jeep.jpg) is in the Public Domain (right); Airbus A380 blue sky by Axwel (http://commons.wikimedia.org/wiki/File:Airbus_A380_blue_sky.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (bottom)

Figure 3.14:
Porters five forces by Grahams Child (http://commons.wikimedia.org/wiki/File:Porters_five_forces.PNG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 3.16:
Shrine 93rd circus 2014 by Paula Lively (https://www.flickr.com/photos/29621494@N02/12896632343/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Rolled oats by Hankwang (http://commons.wikimedia.org/wiki/File:Rolled_oats.jpg) is in the Public Domain (second); Airbus A380 blue sky by Axwel (http://commons.wikimedia.org/wiki/File:Airbus_A380_blue_sky.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (third); Sugar White by Donovan Govan (http://commons.wikimedia.org/wiki/File:Sugar_White.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fourth); Harry the K’s Restaurant Menu Board, Citizens Bank Park by Go Phightins! (http://commons.wikimedia.org/wiki/File:Harry_the_K%27s_Restaurant_Menu_Board,_Citizens_Bank_Park.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fifth); Encyclopedia Beliana 1 by Pepo13 (http://commons.wikimedia.org/wiki/File:Encyclopaedia_Beliana_1.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (sixth); Volvo bobtail semi-truck (LandSpan) by Fourthords (http://commons.wikimedia.org/wiki/File:Volvo_bobtail_semi-truck_(LandSpan).jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (seventh); Callcentre by Petiatil (http://commons.wikimedia.org/wiki/File:Callcentre.jpg) is in the Public Domain (eighth)

Figure 3.17:
Noel 2005 Pékin 031 muraille de chine Mutianyu by Ofol (http://commons.wikimedia.org/wiki/File:Noel_2005_P%C3%A9kin_031_muraille_de_chine_Mutianyu.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 3.18:
Chicago panera bread by Kmf164 (http://commons.wikimedia.org/wiki/File:Chicago_panera_bread.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 3.19:
Bacon Hegenburger by pointnshoot (http://commons.wikimedia.org/wiki/File:Bacon_Hegenburger.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (first); A surfeit, nay panoply, of meat by rjp (https://www.flickr.com/photos/zimpenfish/44279441/) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (second); Turkey Mailman by Eric (http://commons.wikimedia.org/wiki/File:Turkey_Mailman.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (third); Smith Premier Typewriter by Jon Sullivan (http://commons.wikimedia.org/wiki/File:Smith_Premier_Typewriter.jpg) is in the Public Domain (fourth); Alumínium házas Apple MacBook by Shelf (http://commons.wikimedia.org/wiki/File:Alum%C3%ADnium_h%C3%A1zas_Apple_MacBook.JPG) is in the Public Domain (fifth); CN Class M-3-d No 2141 (6840561316) by Peter Broster (http://commons.wikimedia.org/wiki/File:CN_Class_M-3-d_No_2141_(6840561316).jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (sixth); Europa flyer truck by Jonnie Nord (http://commons.wikimedia.org/wiki/File:Europa_flyer_truck.JPG) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (seventh); Satellite-dish cropped by ZeiP (http://commons.wikimedia.org/wiki/File:Satellite-dish_cropped.jpg) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (eighth); Harmony 659 by Henrychan2000 (http://commons.wikimedia.org/wiki/File:Harmony_659.jpg) is in the Public Domain (tenth)

Figure 3.20:
21st century version of votive candles by Marcus Winter (https://www.flickr.com/photos/ghazzog/2849359788/) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/)

Figure 3.21:
South Africa-Money-Old01 by NJR ZA (http://commons.wikimedia.org/wiki/File:South_Africa-Money-Old01.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (first); Diamond ring by Koshyk by Koshy Koshy (http://commons.wikimedia.org/wiki/File:Diamond_ring_by_Koshyk.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (second); Microchips by Zephyris (http://commons.wikimedia.org/wiki/File:Microchips.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (third); Acer Aspire 8920 Gemstone (almost) by Georgy by Georgy90 (http://commons.wikimedia.org/wiki/File:Acer_Aspire_8920_Gemstone_(almost)_by_Georgy.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fourth); Big Box by Huhu (http://commons.wikimedia.org/wiki/File:Big_Box.jpg) is in the Public Domain (fifth); Hertz car rental office Livonia Michigan by Dwight Burdette (http://commons.wikimedia.org/wiki/File:Hertz_car_rental_office_Livonia_Michigan.JPG) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (sixth)

Figure 3.22:
W.Va. TURNPIKE – THE ROAD HOME (7-05-06)=DURING THE RAIN AND FOG by TEABERRYEAGLE (http://commons.wikimedia.org/wiki/File:W.Va._TURNPIKE_-_THE_ROAD_HOME_(7-05-06)%3DDURING_THE_RAIN_AND_FOG.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 3.24:
Frustrated man at a desk (cropped) by LaurMG (http://commons.wikimedia.org/wiki/File:Frustrated_man_at_a_desk_(cropped).jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 3.25:
Chef Geovanis by Chef Giovanis (http://commons.wikimedia.org/wiki/File:Chef_Geovanis.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (top); Arby’s turkey bacon sub by ChildofMidnight (http://commons.wikimedia.org/wiki/File:Arby%27s_turkey_bacon_sub.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (middle left); Swiss Chalet quarter chicken by Tabercil (http://commons.wikimedia.org/wiki/File:Swiss_Chalet_quarter_chicken.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (middle right); CFC fried chicken Bandung by Midori (http://commons.wikimedia.org/wiki/File:CFC_fried_chicken_Bandung.JPG) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (bottom left); Burger King Whopper Combo by Newsflash (http://commons.wikimedia.org/wiki/File:Burger_King_Whopper_Combo.jpg) is in the Public Domain (bottom centre); Crispy Waffle’s Crispy Waffle – Arnold Gatilao by Arnold Gatilao (http://commons.wikimedia.org/wiki/File:Crispy_Waffle%27s_Crispy_Waffle_-_Arnold_Gatilao..jpg) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (bottom right)

License

Icon for the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License

Conclusion by Janice Edwards is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

Share This Book