topic 3: Evaluating a Company's External Environment

today i'll continue with the next topic, which is quite hard but in a POSITIVE way we can call it as INTERESTING! (  i cant believe that i say this, hard = interesting?  )

let's start!

 this mind map shows the components include in macro-environment but there is another principal which is..

each of the components has the chance to affects the firms.

now, I'm going to explain briefly about the 

5 PORTER FORCES

This five forces is about the five important party which seriously hold the competitive pressures on companies within an industry.

now I'm gonna share some knowledge about the concept of industry driving forces.

DRIVING FORCES is the most powerful of the change agents. this is because they have the biggest  influences in reshaping the industry landscape and altering competitive conditions. Driving forces analysis has three steps:

1. identify what the driving forces are
2. assess whether the drivers of change are, on the whole, acting to make the industry more or less attractive 
3. determine what strategy  changes are needed to prepare for the impacts of the driving forces

to identify an industry's driving forces we have to check the categories

• changes in an industry's long term growth rate
• increasing globalization
• emerging new internet capabilities and applications 
• changes in who buys the product and how they use it
• technological change and manufacturing process innovation
• product and marketing innovation 
• entry and exit of major firms 
•  diffusion of technological know-how across companies and countries 
•  changes in cost and efficiency 
• reductions in uncertainty and business risk
• regulatory influences and government policy changes
• changing societal concerns, attitudes, and lifestyles

but there are so many drivers of industry change but these categories are the common drivers in industry.