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Company Sustainability

Company Sustainability. PEST Analysis, Porter’s 5 Forces and Sustainability Strategies. Margarita Antonova. Volunteer Trainer @ Telerik Academy. academy.telerik.com. Business System Analyst. Telerik Corporation. IT. Developers. Business. Product. Table of Contents. PEST LE Analysis

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Company Sustainability

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  1. Company Sustainability PEST Analysis, Porter’s 5 Forces and Sustainability Strategies Margarita Antonova Volunteer Trainer @ Telerik Academy academy.telerik.com Business System Analyst Telerik Corporation IT Developers Business Product

  2. Table of Contents • PESTLEAnalysis • Porter’s 5 Forces • Growth Strategies • Contingency Strategies

  3. Sustainability Questions Are we making a profit?How do we continue to sell at a profit?

  4. PESTLE Analysis Analysis of the external environment and more specifically the Political, Economic, Social, Technological, Legal and Environmental factors.

  5. PESTLE Questions • What is the political situation of the country and how can it affect the industry? • What are the prevalent economic factors? • How much importance does culture has in the market and what are its determinants? • What technological innovations are likely to pop up and affect the market structure? • Are there any current legislations that regulate the industry or can there be any change in the legislations for the industry? • Intellectual property rights for software • What are the environmental concerns for the industry?

  6. Porter’s 5 Forces Model Framework for industry analysis and business strategy development that helps determine the competitive intensity and attractiveness of a market.

  7. Porter’s 5 Forces

  8. Porter’s 5 Forces • Threat of new entries/competition – can new businesses be easily started in you industry/sector • What’s the threat of new businesses starting in this sector? • How easy is it to start up in this business? • What are the rules and regulations? • What finance would be needed to start-up? • Are there barriers to entry which give you greater power?

  9. Porter’s 5 Forces • Threat of substitute products or services - increases the likelihood of customers switching to alternatives • How easy is it to find an alternative to this product or service? • Can it be outsourced? Or automated? • There new markets targeting similar needs?

  10. Porter’s 5 Forces • Bargaining power of customers (buyers) – the ability of buyers to drive prices down caused by their number in the market, importance to the organization, and cost of switching • How powerful are the buyers? • How many are there? • Can the buyers get costs down? • Do they have the power to dictate terms?

  11. Porter’s 5 Forces • Bargaining power of suppliers – the ability of suppliers to drive prices up caused by their number, relative size and strength, uniqueness of their product or service, and cost of switching • Examine how many suppliers are in the market? • Are there a few who control prices? • Or many so prices are lower? • Do your suppliers hold the power? • How easy is it to switch, what’s the cost?

  12. Porter’s 5 Forces • Intensity of competitive rivalry – the main driver is the number and capability of competitors in the market; many competitors, offering undifferentiated products and services reduce market’s attractiveness • What’s the level of competition in this sector? • Is it a commodity market?

  13. Sustainability Strategies Planning for longevity.

  14. Growth Strategies • Growth strategies: • Organic growth • Research and development – the cradle of innovation and staying in the business • Cost-Benefit Analysis • Outside sources: • Mergers – combining companies • Acquisitions – acquiring companies • Strategic alliances – independent organizations that pursue the same goals together

  15. Growth Strategies • Contingency Strategies • Definition – a risk management strategy that aims to minimize the impact of a foreseeable events and to plan for how the business will resume normal operations after such events • Types: • Preparing for predictable and quantifiable crises • Preparing for unexpected and unwelcome events

  16. Software CompanyTypical Structure http://academy.telerik.com/student-courses/...

  17. The Project – Business Plan • Define Environment • Describe Industry • PESTLE • Porter’s 5 Forces Analysis

  18. Free Trainings @ Telerik Academy • Business Skills for Developers @ Telerik Academy • http://academy.telerik.com/student-courses/soft-skills-and-business-skills/business-skills-for-developers/about • Telerik Software Academy • academy.telerik.com • Telerik Academy @ Facebook • facebook.com/TelerikAcademy • Telerik Software Academy Forums • forums.academy.telerik.com

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