Description

Name _________________________

The external environment consists of three major parts. Complete an analysis for each of the three parts of the external environment for the College Textbook industry.

Part 1. Industry Analysis

Assign a value to rate the importance of each of the five forces to this industry on a 1 (not important) to 5 (very important) scale. Then assign a value to reflect the threat that each force poses as a threat to the industry. Multiply the importance rating in column 2 by the threat rating in column 3 to produce a weighted score in column 4 Add the weighted scores in column 4 to get a total weighted score. This score measures the industry’s attractiveness. Minimum score = 5 (not attractive) Maximum score = 125 (very attractive)
Column I Porter’s Five Forces (15 points)	Column 2 Importance (1-5) (1 = not important, … 5 = very important)	Column 3 Threat to Industry (1-5) (1 = Low, 3 = Medium, 5 = High)	Column 4 Weighted Score (5 points)





Total _____

Based on your analysis, how attractive is this industry? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Part 2. General Environment Analysis

Indicate how each of the following general environmental segment has affected the college textbook industry. Indicate whether the effect has created an opportunity or threat.

_____________________________ __ Opportunities __ Threats __ Neither