Transcription of The External Environment
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The External Environment
The External EnvironmentThe Broad EnvironmentSocio-cultural ForcesGlobal Economic ForcesGlobal technological ForcesGlobal Political/Legal ForcesThe Task EnvironmentCompetitive ForcesExternal Stakeholders and Environmental UncertaintyPartnering with External StakeholdersStrategic GroupsKey Points SummaryEnd Notes2 CHAPTERJust like the steel and auto in-dustries during earlierdecades, the music industry isunder siege. In recent years,the technological , economic,legal, and competitive forceshave conspired to alter adecades-old business traditional music recordingand production companies inthe $40 billion music industryare being forced to evolvefrom selling products to simplyproviding a CDs each cost about$.50 to make, but retail for$ or more. The $ price covers the cost ofproduction, marketing, distribu-tion, royalties to the artists, andpercentages for the record com-panies and the retailers. In amajor settlement with recordcompanies, the Federal TradeCommission recently concludedthat consumers may have over-paid more than $450 million forCDs in the past three years.
and its task environment, are global socio-cultural, economic, technological, and political/legal forces. Socio-cultural Forces A few of the major socio-cultural issues currently facing the United States are shown in Exhibit 2.1. Analysis of societal trends is …
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