(5 Forces, Balanced Scorecard, Value Chain)
Description:
Any enterprise that operates in today’s ‘Flat World’ needs to characterize, identify and assess the forces that shape their organizations so that a successful direction can be established. There are two categories of pressure on an enterprise. Those two can best be described by the five competitive forces and the environmental forces that shape the landscape that surrounds the enterprise. Assessing the competitive and environmental pressures using these two categories provides an enterprise with an answer for the direction it might take. It is not enough to know what is going on with competitors but you must have the larger picture of the surrounding business environment. Add to that the scenarios that expose approaches, the decisions needed and alternatives in facing the competitive challenges in the market and you have a plan for success.
Not all the forces will have equal impact. Coupled with the environmental forces such as economic, social, legislative, market and technology an enterprise could suddenly find itself under considerable stress. These environmental forces impact all the competitors but may impact each of them differently and to different degrees.
Global competition from all sizes of organizations demands that an enterprise identify as many of the threats and opportunities as possible in setting their direction. Regional competition on top of the global competition increases the pressure on organizations today.
This course explains the 5 forces idea and provides a means of assessing competition along the five forces dimensions. The course also connects the concept to environmental scanning for a more complete understanding of impact on the business. Successful analysis along with scenario planning reduces the uncertainty most enterprises face in competing in today’s global business scene.
