Nowadays :: Business and Management Studies

NowadaysNowadays, analysing disputation is crucial for managers in order tounderstand the environment in which the transaction evolves, itscompetitors (their goals, plans etc) as well as implement strategiesand position their companies. They tramp accustom a wide variety oftechniques, each having its strengths and weaknesses. According toPrescott and Grant (1988), to postulate the appropriate techniques,managers have to know the diametric techniques available, how they argonrelated to each former(a), the focus and scope of the area and theconstraints limiting the extent of analysis. To analyse contestationefficiently, they have to combine some of the different techniquesavailable as they both have a special aim. However, there arelimitations that managers have to direct into consideration in order toprovide a clear and rough-and-ready work.This essay outlines and evaluates the main weaknesses whenunderstanding the business environment. They vary by nature. They cancome fro m the interpretation of the managers and from the modelsthemselves. However, they are in relation to each other, integrity flawleading to another one.When analysing competition, the starting point is to precisely limitthe intentness the firm belongs to and its boundaries. Managers mayfocus on the market of their company, narrow their definition ofthe industry. They then forget or less consider other segments thatcan change quickly and have impact on the hale industry. According toZahra and Chaples( 1993) an effective definition of industryboundaries requires consideration of four interrelated issues domain(where does the industry begin and end), customer group (sector to beserved and their specific needs), customer functions (customer needand specific patterns) and critical technology (production, marketingand administrative system). Each point enables to define thecompetition more and more precisely. In addition to these issues,managers have to take time into consideration. R eviewing theirbusiness definition, the shape of the industry and the market overthe time is crucial as industries change. Prahalad (1995) states thatmany industries are undergoing massive transformation. Deregulation,global excess capacity, global competition, mergers and acquisitions,changing customer expectations, scientific discontinuities arechanging industries, creating new industries and opening up new and with child(p) growth markets for existing businesses. For instance, chemicalcompanies enter the pharmaceutic industry by making alliances withyoung biotechnology companies, not considered as a nemesis by thepharmaceutical companies. This change in the industry led thepharmaceutical companies to redefine the industry and its boundariesas well as their strategy.Managers need to be vigilant in identifying its competitors. A pooridentification leads to a persecute positioning and a possible long timeresponse to the different actions coming from those undetected rivals.This i dentification is dependent on the managers perceptions and how