Slide 1Americans are Fat and Binge DrinkSlide 3AnnouncementsGlobal Competitiveness Ranking1998 RankingsGlobal Competitiveness Ranking 2002Slide 82004 RankingSlide 10Major PointsConclusionsChapter 2 SummaryThe First of Three Perspectives: The Business EnvironmentImportant Factors to Understand the BCE of a CompanyCompetitiveness: A DefinitionSummary of Competitive ModelHow Does a Company Gain Competitive Advantage?The Diamond of National AdvantageThe Competitive Advantage of NationsSlide 21Clusters are PrevalentDisagreementPossible Exam QuestionsSlide 25Slide 26Slide 27Slide 28Slide 29Slide 30Slide 31Slide 32Porter Value ChainSlide 34Slide 35Chapter 3Slide 37Slide 38Porter Competitive ModelSlide 40Why Do You Care?Slide 42Slide 43Basic Objective of the SBUSlide 45DefinitionsRivalry Likelihood?A Buyer Has Power If:A Supplier Has Power If:Possible Barriers to EntrySubstitute ThreatsSlide 52Slide 53Slide 54Slide 55Slide 56Slide 57Slide 58Slide 59Slide 60Porter Competitive Model TipsSlide 62Computer IndustrySlide 64Slide 65Slide 66The Computer (IT/IS?) Industry as seen by IBM in 2002Slide 68Slide 69Slide 70Slide 71Slide 72Slide 73Slide 74What is a PC?PC Industry SegmentChange Relative to Selling PCsPC Industry ChangeThe Future Computer IndustrySlide 80Slide 81Retail Industry Value ChainValue Chain Things to RememberSlide 84Slide 85Slide 86What’s Happening?!What’s Happening?!Apple announced all-time record quarterly earnings.Intel exceeded earnings expectations for the quarter.2004 holiday sales were the best since 1999.Wal-Mart on the offensive against critics regarding employment practices and impact on communities.Americans are Fat and Binge Drink Americans are Fat and Binge Drink 2001 StudyWe are a society that is somewhat taken with excesses.More than one in five people are obese.100,000 Americans die a year because of alcohol abuse.Half of adult Americans do not drink at all.300,000 U.S. adults die from causes related to obesity.An On-going Issue with An On-going Issue with NewspapersNewspapersThe function of the press is to inform but its role is to The function of the press is to inform but its role is to make money.make money.Investigative reporting wins Pulitzer Prices but costs a lot of money.AnnouncementsAnnouncementsFirst ISM Toastmasters meeting a week from today at noon in new Engineering Building room 280. Sign up today and make sure your email address is legible.Complete list of student presentations are on the course web page.Global Competitiveness RankingGlobal Competitiveness RankingCriteria:1. Quality of national business environment.2. The set of institutions, market structures and economic policies supportive of high level of prosperity. 3. Company operations and strategy ranking.Michael Porter, Institute for Strategy and Competitiveness, Harvard Business SchoolWorld Economic Forum web page.1998 Rankings1998 Rankings1. Singapore2. Hong Kong3. US4. UK5. Canada6. Taiwan7. Netherlands8. Switzerland9. Norway10. Luxembourg11. Ireland12. Japan13. New Zealand14. Australia 15. Finland 16. Denmark 17. Malaysia 18. Chile 19. Korea20. Austria Source: World Economic ForumGlobal Competitiveness RankingGlobal Competitiveness Ranking200220021. US (2)2. Finland (1)3. UK (7)4. Germany (4)5. Switzerland (5)6. Sweden (6)7. Netherlands (3)8. Denmark (8)9. Singapore (10)10. Canada (11)11. Japan (15)12. Austria (13) 13. Belgium (14)14. Australia (9)15. France (12)16. Taiwan (21)17. Iceland (16)18. Israel (17)19. Hong Kong (18)20. Ireland (22)21. Norway (19)22. New Zealand (20)23. Korea (26)24. Italy (24)25. Spain (23)26. Malaysia (37) 27. Slovenia (32) 28. Hungary (27)29. South Africa (25)30. Estonia (28)Global Competitiveness RankingGlobal Competitiveness Ranking33. Brazil (30)37. India (36)38. China (47)48. Poland (42) 55. Mexico (52)61. Philippines (53)58. Russia (58)60. Vietnam (62)79. Bolivia (75)80. Haiti2004 Ranking2004 RankingCountry Country 2004 rank 2004 score 2003 rank2004 rank 2004 score 2003 rank Finland Finland 1 1 5.95 5.95 11 United States United States 2 2 5.82 5.82 22 Sweden Sweden 3 3 5.72 5.72 33 Taiwan Taiwan 4 4 5.69 5.69 55 Denmark Denmark 555.66 5.66 44 Norway Norway 6 6 5.56 5.56 99 Singapore Singapore 7 7 5.56 5.56 66 Switzerland Switzerland 8 8 5.49 5.49 77 Japan Japan 9 9 5.48 5.48 1111 Iceland Iceland 10 10 5.44 5.44 88United Kingdom 11 5.30 15Netherlands 12 5.30 12Germany 13 5.28 13Australia 14 5.25 10Canada 15 5.23 16New Zealand 18 5.18 14France 27 4.92 26Korea 29 4.90 18China 46 4.29 44Italy 47 4.27 41Mexico 48 4.17 47India 55 4.07 56Brazil 57 4.05 54Poland 60 3.98 45Indonesia 69 3.72 72Russian Federation 70 3.68 70Philippines 76 3.51 66Vietnam 77 3.47 60Kenya 78 3.45 83Chad 104 2.50 101Country 2004 rank 2004 score 2003 rankMajor PointsMajor PointsIt is no longer possible for a country to insulate itself from the rest of the world.Within the current industrialized world there is a narrowing of the gap between it and third world countries. The accelerated pace of change is what disturbs the pessimists, because they can see it happening.It took Britain 60 years to double its output, the US 50 years but developing countries are doubling output every 12 years. China has actually doubled its GDP in seven years.In many respects the developing world is unknown economic and financial territory.ConclusionsConclusions• The diamond of national advantage makes sense as a means of understanding global economic success.• Domestic success does prepare companies to compete globally.• Major European and an increasing number of Asian countries are capable of competing on a global basis.• The global marketplace is only going to get tougher based on more, tougher competitors.• The diamond can help to anticipate and understand new competitors.Chapter 2 SummaryChapter 2 SummaryBusiness
View Full Document
Unlocking...