Business 475 - INTEGRATED BUSINESS TOPICS Class 2: INTERNAL AND EXTERNAL ENVIRONMENT

1. Welcome

3. Agenda

4. Agenda
Review of class 1

5. Agenda
Review of class 1
Ethics & social responsibility

6. Agenda
Review of class 1
Ethics & social responsibility
Novastan exercise

7. Agenda
Review of class 1
Ethics & social responsibility
Novastan exercise
Advertising video

8. Agenda
Review of class 1
Ethics & social responsibility
Novastan exercise
Advertising video
Internal analysis (value chain, SWOTT)

9. Agenda
Review of class 1
Ethics & social responsibility
Novastan exercise
Advertising video
Internal analysis (value chain, SWOTT)
SWOTT Assignment / exercise

10. Agenda
Review of class 1
Ethics & social responsibility
Novastan exercise
Advertising video
Internal analysis (value chain, SWOTT)
SWOTT Assignment / exercise
External analysis (Porter 5 forces)

11. Agenda
Review of class 1
Ethics & social responsibility
Novastan exercise
Advertising video
Internal analysis (value chain, SWOTT)
SWOTT Assignment / exercise
External analysis (Porter 5 forces)
Exercise: using the 5 forces

12. Agenda
Review of class 1
Ethics & social responsibility
Novastan exercise
Advertising video
Internal analysis (value chain, SWOTT)
SWOTT Assignment / exercise
External analysis (Porter 5 forces)
Exercise: using the 5 forces
Next week

13. Final exam hint: all questions taken from reading,
pegged to class objectives

14. Questions before we begin?

15. Concept Review

16. 1
Introduction to Strategic Management

17. 2
Internal and External Environment

18. Strategic Management

19. “A strategy delineates a
territory in which a
company seeks to be
unique.”
michael porter

20. technology
scale
we’re
CHEAP
sam walton logistics
bargaining

21. healthcare
CHANGE
close
gitmo
torture

22. tracking
we’re
FAST
training
hub & spoke
fred smith

23. Mission, Vision & Values
Statements

25. “I believe that this nation should
commit itself to achieving the goal,
before this decade is out, of landing a
man on the moon and returning him
safely to the earth”

26. Ethics & Social Responsibility

27. Economic We need to make money

28. Economic We need to make money
Legal Without breaking the law

29. Economic We need to make money
Legal Without breaking the law
Ethical ...or breaking our values

30. Economic We need to make money
Legal Without breaking the law
Ethical ...or breaking our values
Discretionary and maybe do some good stuff

31. What are business ethics?

32. Do business ethics vary by
country & culture?

33. Casablanca Cruise Lines

34. Casablanca Cruises
• Bought two used Ocean Liners
• Retrofitting for luxury playground
• Active seniors

35. A slight problem. . .
• Ships have Asbestos
• Must be removed
• Costs $100M in United States
• Costs $20M in Novastan
• You have to do it for less than $30M

36. Novastan Health Regulations
• Workers must have gloves, overalls, masks, boots
respirators
• U.S. there
are respirators, negative airflow control,
much more sophistication

37. Decision has been made
• Moving ahead with project
• Abiding by Novastani regulations
• plus a little more

38. Are they wearing the masks?
• Talking to on-site project manager
• Men are not wearing masks
• What do you do?

39. Disclosure
• Bleeding heart magazine
• Photos of Novastan job site
• No masks, 14 year old workers

40. What was the point of that?

41. Internal Analyses

42. Resource based view of the firm

43. Firms differ in fundamental ways because each
firm possesses a unique “bundle” of resources –
tangible and intangible assets and organizational
capabilities to make use of those assets

44. Tangible Assets Intangible Assets Organizational
Capabilities
Hampton Inn’s Budweiser’s brand Dell Computer’s
reservation system name customer service
Ford Motor’s cash Dell Computer’s Wal-mart’s purchasing
reserves reputation and inbound logistics
3M’s patents Nike’s advertising with Sony’s product
LeBron James development process
Georgia Pacific’s land Katie Couric as NBC’s Coke’s global
holdings “Today” host distribution
coordination

45. Core competencies

46. Value Chain Analysis

50. SWOT(T) Analysis

51. SWOT
Strengths Weaknesses
Opportunities Threats

52. SWOT Analysis Numerous environmental opportunities
Cell 3: Cell 1:
Supports a Supports an
turnaround-oriented aggressive
Critical strategy strategy
Substantial Internal
Internal
Strengths
Weaknesses Cell 4: Cell 2:
Supports a defensive Supports a
strategy diversification
strategy
Major environmental threats

53. SWOTT Exercise
Develop two slides (or use white board)
Slide 1: Company description
Slide II: SWOT chart
Slide III: SWOT analysis

54. External environment

56. Social Economic Technology Competitive Regulatory

59. TECHNOLOGICAL OBSOLESCENCE

60. TECHNOLOGICAL OBSOLESCENCE

61. RE GU LATORY FORCES

62. RE GU LATORY FORCES

63. RE GU LATORY FORCES

64. What are entry barriers?

65. 5 Forces framewor k

66. Globalization

70. Exercise: Patagonia

71. Read: Strategy in Action:
It’s Not Easy Being Green: Patagonia Exhibit
Chapter 3, figure 3-6
Group 1: External environment
Group 1I: Internal environment

72. Assignments

74. Week 3
Individual Assignment: SWOTT Analysis Paper and Table 5

75. Week 3
Individual Assignment: SWOTT Analysis Paper and Table 5
Learning Team Assignment: Considerations of a Strategic Plan List 2
Learning Team Assignment: Functional Area Interrelationships 10

76. Walmart, Part I

77. Questions
• How could rubbermaid have reacted faster?
• Could they survive in the U.S.?
• Which stakeholders love Walmart, which hate it?

78. Walmart, Part II - Globalization

79. Questions
• What drove Walmart’s globalization?
• “Walmart and China are a joint venture”
• good, bad or indifferent?

80. Walmart, Part III

81. Concept Review

93. October / November 2009
Marketing 571
Chapter one
“There is no perfect pickle”
Lorem ipsum dolor sit amet, magnis a metus quibusdam dui
donec, a porttitor vestibulum turpis, erat et vivamus ac neque dis
cras. Phasellus est mollis distinctio, ridiculus elit dolor quis
ipsum. Cum dis nam, rhoncus ut curabitur arcu integer eget, erat
tempus vel nonummy amet curabitur. Phasellus felis ridiculus
tellus et, in pede, mauris magna porttitor ullamcorper, odit
venenatis, arcu ultrices. Suspendisse elementum pretium odio.
Plor, et ullamcorper nisl nec ut cum, integer quisque massa
ultricies risus adipiscing morbi, proin vestibulum aliquam sociis
blandit donec cras, mus quam suspendisse in quis.
Penatibus dolor platea, nunc sit auctor mauris, a bibendum
rutrum orci non sit volutpat, sit placerat nulla arcu turpis nostra
arcu. Libero sed sit mollis blandit. Faucibus dolor vel sapien
sagittis pellentesque fermentum, a amet Malcolm Gladwell
1 2

94. October / November 2009
Marketing 571
Chapter two
“The reptile brain”
Lorem ipsum dolor sit amet, magnis a metus quibusdam dui
donec, a , erat et vivamus acurpis, erat et vivamus ac neque dis
cras. Phasellus est mollis distinctio, ridiculus elit dolor quis
ipsum. Cum dis nam, rhoncus ut curabitur arcu integer eget, erat
tempus vel nonummy amet curabitur. Phasellus felis ridiculus
tellus et, in pede, mauris magna reptile brain, odit venenatis,
arcu ultrices. Suspendisse elementum pretium odio.
Plor, et ullamcorper nisl nec ut cum, integer quisque massa
ultricies risus adipiscing morbi, proin vestibulum aliquam sociis
blandit donec cras, mus quam suspendisse in quis.
Penatibus dolor platea, nunc sit auctor mauris, a bibendum
rutrum orci non sit volutpat, sit p
Clotaire Rapaille
13 14

95. October / November 2009
Marketing 571
Chapter three
“Be Remarkable”
Lorem ipsum dolor sit amet, magnis a metus quibusdam dui
donec, a , erat et vivamus acurpis, erat et vivamus ac neque dis
cras. Phasellus est mollis distinctio, ridiculus elit dolor quis
ipsum. Cum dis nam, rhoncus ut curabitur arcu integer eget, erat
tempus vel nonummy amet curabitur. Phasellus felis ridiculus
tellus et, in pede, mauris magna reptile brain, odit venenatis,
arcu ultrices. Suspendisse elementum pretium odio.
Plor, et ullamcorper nisl nec ut cum, integer quisque massa
ultricies risus adipiscing morbi, proin vestibulum aliquam sociis
blandit donec cras, mus quam suspendisse in quis.
Penatibus dolor platea, nunc sit auctor mauris, a bibendum
rutrum orci non sit volutpat, sit p
Seth Godin
25 26

96. October / November 2009
Marketing 571
Chapter four
“The Long Tail”
Lorem ipsum dolor sit amet, magnis a metus quibusdam dui
donec, a , erat et vivamus acurpis, erat et vivamus ac neque dis
cras. Phasellus est mollis distinctio, ridiculus elit dolor quis
ipsum. Cum dis nam, rhoncus ut curabitur arcu integer eget, erat
tempus vel nonummy amet curabitur. Phasellus felis ridiculus
tellus et, in pede, mauris magna reptile brain, odit venenatis,
arcu ultrices. Suspendisse elementum pretium odio.
Plor, et ullamcorper nisl nec ut cum, integer quisque massa
ultricies risus adipiscing morbi, proin vestibulum aliquam sociis
blandit donec cras, mus quam suspendisse in quis.
Penatibus dolor platea, nunc sit auctor mauris, a bibendum
rutrum orci non sit volutpat, sit p
Chris Anderson
38 39

97. October / November 2009
Marketing 571
Chapter five
“Advertising is wasteful”
Lorem ipsum dolor sit amet, magnis a metus quibusdam dui
donec, a , erat et vivamus acurpis, erat et vivamus ac neque dis
cras. Phasellus est mollis distinctio, ridiculus elit dolor quis
ipsum. Cum dis nam, rhoncus ut curabitur arcu integer eget, erat
tempus vel nonummy amet curabitur. Phasellus felis ridiculus
tellus et, in pede, mauris magna reptile brain, odit venenatis,
arcu ultrices. Suspendisse elementum pretium odio.
Plor, et ullamcorper nisl nec ut cum, integer quisque massa
ultricies risus adipiscing morbi, proin vestibulum aliquam sociis
blandit donec cras, mus quam suspendisse in quis.
Penatibus dolor platea, nunc sit auctor mauris, a bibendum
rutrum orci non sit volutpat, sit p
John Wanamaker
49 50

98. October / November 2009
Marketing 571
Chapter six
“Mmmm….Donuts”
Lorem ipsum dolor sit amet, magnis a metus quibusdam dui
donec, a , erat et vivamus acurpis, erat et vivamus ac neque dis
cras. Phasellus est mollis distinctio, ridiculus elit dolor quis
ipsum. Cum dis nam, rhoncus ut curabitur arcu integer eget, erat
tempus vel nonummy amet curabitur. Phasellus felis ridiculus
tellus et, in pede, mauris magna reptile brain, odit venenatis,
arcu ultrices. Suspendisse elementum pretium odio.
Plor, et ullamcorper nisl nec ut cum, integer quisque massa
ultricies risus adipiscing morbi, proin vestibulum aliquam sociis
blandit donec cras, mus quam suspendisse in quis.
Penatibus dolor platea, nunc sit auctor mauris, a bibendum
rutrum orci non sit volutpat, sit p
Homer Simpson
60 61

99. October / November 2009
Marketing 571
Chapter six
“Mmmm….Donuts”
Lorem ipsum dolor sit amet, magnis a metus quibusdam dui
donec, a , erat et vivamus acurpis, erat et vivamus ac neque dis
cras. Phasellus est mollis distinctio, ridiculus elit dolor quis
ipsum. Cum dis nam, rhoncus ut curabitur arcu integer eget, erat
tempus vel nonummy amet curabitur. Phasellus felis ridiculus
tellus et, in pede, mauris magna reptile brain, odit venenatis,
arcu ultrices. Suspendisse elementum pretium odio.
Plor, et ullamcorper nisl nec ut cum, integer quisque massa
ultricies risus adipiscing morbi, proin vestibulum aliquam sociis
blandit donec cras, mus quam suspendisse in quis.
Penatibus dolor platea, nunc sit auctor mauris, a bibendum
rutrum orci non sit volutpat, sit p
Homer Simpson
60 61

100. October / November 2009
Marketing 571
Chapter six
“Mmmm….Donuts”
Lorem ipsum dolor sit amet, magnis a metus quibusdam dui
donec, a , erat et vivamus acurpis, erat et vivamus ac neque dis
cras. Phasellus relations
public est mollis distinctio, ridiculus elit dolor quis
ipsum. Cum dis nam, rhoncus ut curabitur arcu integer eget, erat
tempus vel nonummy amet curabitur. Phasellus felis ridiculus
tellus et, in pede, mauris magna reptile brain, odit venenatis,
arcu ultrices. Suspendisse elementum pretium odio.
Plor, et ullamcorper nisl nec ut cum, integer quisque massa
ultricies risus adipiscing morbi, proin vestibulum aliquam sociis
blandit donec cras, mus quam suspendisse in quis.
Penatibus dolor platea, nunc sit auctor mauris, a bibendum
rutrum orci non sit volutpat, sit p
Homer Simpson
60 61

101. October / November 2009
Marketing 571
Chapter six
“Mmmm….Donuts”
Lorem ipsum dolor sit amet, magnis a metus quibusdam dui
donec, a , erat et vivamus acurpis, erat et vivamus ac neque dis
cras. Phasellus relations
public est mollis distinctio, ridiculus elit dolor quis
ipsum. Cum dis nam, rhoncus ut curabitur arcu integer eget, erat
tempus vel nonummy amet curabitur. Phasellus felis ridiculus
tellus et, in pede, mauris magna reptile brain, odit venenatis,
arcu ultrices. Suspendisse elementum pretium odio.
Plor, et ullamcorper nisl nec ut cum, integer quisque massa
ethics
ultricies risus adipiscing morbi, proin vestibulum aliquam sociis
blandit donec cras, mus quam suspendisse in quis.
Penatibus dolor platea, nunc sit auctor mauris, a bibendum
rutrum orci non sit volutpat, sit p
Homer Simpson
60 61

102. Organizational structure,
culture, and purpose

103. The basic corporate structure
Board & CEO

104. The basic corporate structure
Board & CEO
Human
R&D Finance Marketing Operations
Resources

105. The centralized multi-business structure
Board & CEO
R&D
Finance
Marketing
Operations
Human
Resources

106. The centralized multi-business structure
Board & CEO
R&D Business Unit Business Unit Business Unit Business Unit
Finance
Marketing
Operations
Human
Resources

107. The de-centralized multi-business structure
Board & CEO
Business Unit Business Unit Business Unit Business Unit Business Unit
R&D R&D R&D R&D R&D
Finance Finance Finance Finance Finance
Marketing Marketing Marketing Marketing Marketing
Operations Operations Operations Operations Operations
Human Human Human Human Human
Resources Resources Resources Resources Resources

108. Centralized v. De-centralized

109. Agency theory

110. Stakeholders

111. Assignments

113. Week 2
Individual Assignment: Conceptualizing a Business 5
Write a 1,050-1,400-word paper in which you explain the
importance of your selected business’ vision, mission, and
values in determining your strategic direction.

114. Week 2
Individual Assignment: Conceptualizing a Business 5
Individual Assignment: Value Alignment 10
Select an existing organization with which you are familiar
that is different than the one you used for the
“Conceptualizing a Business” paper.
• Write a 700-1,050-word paper in which you analyze the
individual values and the organization’s values as reflected
by the organizations plans and actions

115. Week 2
Individual Assignment: Conceptualizing a Business 5
Individual Assignment: Value Alignment 10
Learning Team Assignment: Business Selection Discussion 2
Discuss with your Learning Team your selected business
from the Week One assignment, Importance of Strategic
Planning and Management in the Business Environment
Paper. In this discussion, share your ideas about what your
business is and what you hope it will become.

116. Week 2
Individual Assignment: Conceptualizing a Business 5
Individual Assignment: Value Alignment 10
Learning Team Assignment: Business Selection Discussion 2
Business selection discussion
Use your forums
One thread per person/business
Contribute at least one post per person
Summarize your thread

117. Next Week

118. SWOTT Analysis
Environmental scanning