GSM Lecture 5

Management > Global Strategic Management > Conditions

Conditions

To create an effective corporate strategy it is essential to gain a full understanding of the external environment at the local, national and international level.

At local/town level is it necessary to be aware of other factors such as competition, prices of things, health regulations and taxes.

National level involves the awareness of factors such as the minimum wage, rules about smoking and alcohol regulations.

International level includes knowledge about import regulations, the price of coffee and the WTO

All of the above issues need to be considered in terms of regulations, political issues, competition and the marketplace

It is also necessary to understand the following conditions:

Local and international demand conditions
Local and international technological conditions
The nature of competition with rival firms
The impact of government and regulatory policy

Macroenvironment and microenvironment

Porter's 5 Forces

Five Forces explained

Five Forces continued