ptimal quality serviceThe mission statement and objectives help the business define its environmental needs. Managers know which parts of the environment to monitor. In this way, they can understand whether their business achieve its objectives or not. In our case the management of Salomon should monitor:-the market share of competitors-the strategies of current competitors as well as the entry of new ones-new or changing distribution channels for selling ski equipmentIn general, the company has to monitor both macro (economic, technological, social) and microenvironment (customers, competitors, suppliers) factors that affect its business.The company has to identify these environmental factors and set up an intelligence system in order to recognize major trends and important developments. Then for each trend managers should detect opportunities and threats for the company. Opportunities should be classified according to their attractiveness and success probability. The latter depends on whether its business strengths match the requirement for operating in the target market and exceed those of its competitors. The company has to generate the greatest customer value in order to achieve competitive advantage. Opportunities for Salomon are shown on the following opportunity matrix: Success probability HighLow High12 Attractiveness Low34 1.company develops radically different ski2.company develops much lower cost ski3.company develops ski with new design4.company develops bizarre color skiLooking at the figure above, the best opportunity for Salomon is in the cell 1, and management should prepare plans to pursue this opportunity. The opportunity in cell 4 is not important to be considered. Cell 2,3 should be monitored in case they improve their attractiveness and success probability. In order to prepare complete opportunities and threats analysis of the external environment the followi...
