Balancing theory with practice, this fully updated fourth edition of John A. Parnell's acclaimed text continues to provide detailed, accessible coverage of the strategic management field. Concise, easy to understand chapters address concepts sequentially, from external and internal analysis to strategy formulation, strategy execution, and strategic control. To help readers build their analytic skills as they master course concepts, Parnell aligns each chapter's key concepts with 25 case analysis steps, rather than relegating case analysis to a chapter at the end of the book. Current examples and high interest real-time cases, largely drawn from The Wall Street Journal and Financial Times, illustrate the key role of strategic management in the United States and around the world. Ideal for the capstone strategic management course, Strategic Management is appropriate for a range of undergraduate and graduate courses.
Chapter 3: The External Environment: Political-Legal and Economic Forces
The External Environment: Political-Legal and Economic Forces
- Analysis of the External Environment
- Political-Legal Forces
- Global Considerations
- Economic Forces
- Gross Domestic Product
- Inflation Rates
- Interest Rates
- Exchange Rates
- Ecological Influences
- Key Terms
- Review Questions and Exercises
- Practice Quiz
- Student Study Site
After the industry has been clearly defined and its potential profitability assessed, forces outside the industry should be considered. Constant changes in these external forces can present numerous challenges to strategic managers. It is important to understand how these forces collectively influence the industry in which a firm competes before strategic plans are developed. Although a number of individual companies are discussed, this chapter continues with an industrial organization (IO) perspective by emphasizing effects on entire industries, not just firms.
Analysis of the External Environment
Organizations and industries exist ...