•Identify and describe the three major parts of the external environment. •Explain why it is important to study and understand the external environment. •Describe and discuss the four activities of the external environmental analysis process. •Identify and describe the six segments of the general environment. •Describe the expected changes that will occur with the ethnic mix of the United States work force and their potential effect on the strategic posture of the firm. •Identify the five competitive forces and explain how they determine industry profit potential. •Describe the factors that raise the competitive nature of an industry’s rivalry. •What are high exit barriers and how do they affect the competition within an industry? •What do firms need to know about their competitors and what intelligence-gathering techniques can be used to obtain this information?
•Describe the importance of internal analysis to the strategic success of the firm. •Describe the various types of resources.
•Define capabilities and how they affect the firm’s strategic success. •Describe the four specific criteria that managers can use to decide which of their firm’s capabilities have the potential to create a sustainable competitive advantage. •Describe a value chain analysis.
•Why is it important to prevent core competencies from becoming core rigidities?
•Define strategy and business-level strategy.
•In analyzing a firm’s customers, discuss the classic three questions a firm must answer and the various characteristics of each. •Discuss how a cost leadership strategy can allow a firm to earn above-average returns in spite of strong competitive forces. •Describe a cost leadership strategy and its risks.
•Describe the risks of a differentiation strategy.
•Describe a focus strategy and its additional risks.
•Describe the advantages of integrating cost leadership and differentiation strategies. •What are the risks of an...