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    1.3 Factors That Shape A Company Strategy

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    rajeshwari
    Factors that shape a company's strategy include societal, political, and regulatory considerations; competitive conditions in the industry; opportunities and threats in the external environment; internal resources and capabilities; personal values of managers; and shared company culture. Environmental scanning involves systematically monitoring the external environment to identify opportunities and threats through various approaches such as regular data collection, ad-hoc surveys, and using secondary sources of information.

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    1.3 Factors That Shape A Company Strategy

    Uploaded by

    rajeshwari
    915 views1 page
    Factors that shape a company's strategy include societal, political, and regulatory considerations; competitive conditions in the industry; opportunities and threats in the external environment; internal resources and capabilities; personal values of managers; and shared company culture. Environmental scanning involves systematically monitoring the external environment to identify opportunities and threats through various approaches such as regular data collection, ad-hoc surveys, and using secondary sources of information.

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    1.3 factors that shape a company strategy

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    Factors that shape a company's strategy include societal, political, and regulatory considerations; competitive conditions in the industry; opportunities and threats in the external environment; internal resources and capabilities; personal values of managers; and shared company culture. Environmental scanning involves systematically monitoring the external environment to identify opportunities and threats through various approaches such as regular data collection, ad-hoc surveys, and using secondary sources of information.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    915 views1 page

    1.3 Factors That Shape A Company Strategy

    Uploaded by

    rajeshwari
    Factors that shape a company's strategy include societal, political, and regulatory considerations; competitive conditions in the industry; opportunities and threats in the external environment; internal resources and capabilities; personal values of managers; and shared company culture. Environmental scanning involves systematically monitoring the external environment to identify opportunities and threats through various approaches such as regular data collection, ad-hoc surveys, and using secondary sources of information.

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    © All Rights Reserved
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    of 1

    Factors that shape a company’s strategy:

    Societal, political regulatory and citizenship considerations: All organizations operate within a society.
    Hence, social expectations, values, and ethical considerations play a vital role in shaping a strategy. Moreover,
    economic, societal, political, regulatory, and citizenship factors limit the strategic actions a company can or
    should take.

    Competitive conditions and overall industry attractiveness: A company’s strategy should be tailored to fit
    industry and competitive conditions. Various competitive conditions like price, product quality, performance
    features; service, warranties, and so on play a vital role in shaping a strategy.

    The company’s market opportunities and external threats: A good strategy aims at capturing a company’s
    best growth opportunities. It also aims at defending against external threats to its well-being and future
    performance.

    Company resource, strength, competencies, and competitive capabilities: One of the most crucial strategy-
    shaping considerations is whether a company has or can acquire the resources, competencies, and capabilities
    needed to execute a strategy proficiently.

    The personal ambitions, businesses philosophy, and ethical beliefs of managers:  Various studies indicate
    that manager’s ambitions, values, business philosophies, attitude toward risk, and ethical beliefs have an
    important influence on strategy.

    The influence of shared values and company culture for strategy: A company’s policies, practices,
    traditions, philosophical beliefs, and ways of -doing things come together to create a distinctive culture. Culture
    can dominate the kinds of strategic moves a company considers or rejects.
    Environmental scanning:
    The process by which organizations monitor their relevant environment to identify opportunities and threats
    affecting their business is known as environmental scanning’
    Environmental analysis is the process by which strategist monitor the environmental factors to determine
    opportunities for and threats to their firms.
    Approaches to environmental scanning:
     Systematic approach: This approach demands a systematic collection of information for scanning an
    environment. Different types of information related to market, competitors, customers, regulations, etc.
    may have a direct impact on the organization’s business. So these are required to be closely monitored
    regularly to determine relevant facts and figures. This type of approach is best suitable for strategic
    management activities and operational tasks.
     Ad-hoc basis approach: In this approach, organizations conduct special surveys on an ad-hoc basis
    related to certain environmental issues. These studies or surveys may be considered while initiating
    new projects or to update current strategies.
     Secondary information approach: This approach consists of the use of processed form information
    which is collected from different internal and external environment i.e. government agencies,
    educational institutes, etc. So, in this approach, information is obtained from secondary resources.

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