【正文】 fctive strategic analysis.B. Ability of making a decisive judgement, which is needed when making strategic selection.C. Ability of prehesive planning, which is needed when formulating a strategic plan. D. Ability of thougthful practicing, which is needed when implementing the strategy.E. Ability of flexibility and adaptiveness, which is needed when facing a constantly changing enviornment in which a business organization may frequently encounter. Chapter 2 external analysis in strategic analysisObjectives: a framework of external analysis.B. identify key factors in EAC. outline a general process of analysing each of the key factor . D. make a preliminary conclusion of EA Introduction of EA a general definition of strategic analysis In SM, SA refers to a systematic and prehensive analysis on the external and internal factors, which will affect business operation of a BO. So SA include two parts of analysis, one is EA, and the other is IA. the aim or function of SA Before making strategic decisions for a BO, srategist should carefully analyzing some essential factors that will affect the effectiveness of these decisions. As an old Chinese saying said: without knowing your enemy and yourself, you can never win a war. The first strategic decision needed to be made for a BO is the mission and vision, which identify the main business scope and long term goals for a BO. Before making this decisions, strategists should know the long term profitibility of the selected business. Basically, the long term profitibility of an business are mainly determined by two factors. One is the average profitibility of the whole industry, and the other one is the earning capacity of the individual BO. Therefore SA mainly focus on analyzing these two factors, among them, EA focus on industry analysis, and IA focus on enterprise analysis. methods used in EA Besides some basic principles in SM, we will also study some methodologies used in SM. In EA, there are some basic methods, which we will illustrate in detail in our later discussion. Here we will make a brief introduction about some of these methods.The first method is the method of key factors. This method is used in selecting factors, which will affect the long term profitibility of a certain industry. Since there are so many factors which can affect the profitibility of an industry, that we can put all of these factors into our consideration. What we can do is to select some key factors that have significant affact on the profitibility of an industry. In Chinese philosophy, this method is called catching the major contradictions and major aspects of the major contradiction. The other method is trend analysis. As we said before in chapter 1, prediction about future events can not be made so precisely as some economic reports. But we still can make a basic prediction that could tell us the general trend of future events. the model of EA The model here refer to the framework used in the EA, which are different in different SM theory. Five force modelA. force from petitorsB. force from new entrantsC. force from substitute productsD. froce from buyersE. force from supplyers outline of industry analysisA. total demandB. total supplyC. petition situationD. supply chain situationE. other related factors analysis on general demand the theory of market mechanism: total supply and total demand decide market price, and market price affect total supply and total demand, and thus affect allocation of resources in the market. the aim of analysis on general demand From the basic theory of market mechanism, we can know that total demand is one of the two factors, which decide market price. In a market economy, all business activities are aimed to satisfy a certain kind of demand, and to some extent, the profitibility of a industry are largely determind by the total demand in this industry. By analysing the current total demand and the general trend in a relatively longer period, we can get a basic conclusion on the profitibility of an industry. some major indicators used to analysize general demandA. current total demand for a product = per captia consumption of a product * quantity of total population B. Future demand for a product = per captia demand for a product in future * total population in futureC. the annual growth rate of total demand = (future demand – current) / growing years basic conclusion on total demand: four stages in product’s life cycle A. introduction stage B. growth stage C. maturity stage D. decline stage A. Main characteristics of introduction stage: high growth ratehigh profit margin********stars B. Main characteristics of growing stage high growth ratemedium or low profit margin********cash cowsC. Main characteristics of stable stage:medium or low growth ratemedium or low profit margin********dogsD. Main characteristics of decling stage:negative growth ratelow profit margin********questions Analysis on general supply aims of general supply ananlysis from theory of market mechanism we have known that, in addition to general demand, general supply is another determinant factor which will affect market price. Actually, it is the relationship between total demand and total supply that finally determine the market price. Just because in most cases, general demand usually is the initial factor that will change the equillibrium price, we put it in the first place in our discussion. In this section, will turn our focus on total supply analysis, and discuss how it will affact market price and thus profitibility in a certain industry. indicators used in general supply analysisA. overall capacity of general supply relative to general demand: reflect current capacity(1) undercapacity(2) dueca