...Appraoches to strategy 1 Rational approach, strategy 1 Ansoff 1 Processual approach 1 Loigcal incrementalism 1 planning vs crafting 1 crafting vs planning 1 Rational approach vs processual 1 evolutionary approach 1 Systemic approach 1 Startegic thinking 1 Strategic thinks vs planning 1 Startegic planning vs thinking 1 thinking vs planning 1 planning vs thinking 1 Fit vs stretch 1 Stretch vs fit 1 Levels of strategy 1 strategy level 1 Corporate strategy 1 Business strategy 1 functional strategy 1 global context of business 1 globalisation drivers 1 Competitive forces 1 technological forces 1 social forces 1 political forces 1 Globalisation challenges 1 Competition 1 distribution 1 macro-economic 1 socio-economic 1 financial 1 legal 1 Physical 1 Political 1 sociocultural 1 labour 1 technological forces 1 Globalisation benefits 1 costs benefits 1 timing benefits 1 learning benefits 1 arbitrage benefits 1 Role of accountant in strategy development 1 accountant role in startegic development 1 Comments 19 art of planning and conducting a war; "strategy is the art of using battles to win wars 19 19 19 insivible hand 19 Adam smith Strategy evolution 19 Strategy evolution 20 20 Operational...
Words: 2428 - Pages: 10
...1. INTRODUCTION 1.1 Synopsis The following report examines the UK estate agency industry (residential sales at a local market level) between two time periods (the recent boom and subsequent recession that followed). Porters 5 Forces framework has been used to evaluate the changes in industry attractiveness. The analysis draws on industry specific information and makes reference to strategic management theory where appropriate. The discussion alludes to the capabilities of a chosen company within this industry and how it fairs as a competitive player. Finally, a critical evaluation of the framework in reference to the industry is pursued to support a discussion around alternative frameworks and their contribution to a more wholesome analysis. 1.2 Industry context The estate agency industry in the UK expanded considerably between the years of 1997-2006 with the average house price rising in value from £60,638 (1996) to £201,081 (2007), a rise of 232%[i], but witnessed a change of fate mainly due to the economic downturn post 2007. The expansion of such a lucrative market was due mainly to the buoyant activity of buying/selling of property/land for a higher realised value than what it was worth previously, an increase in disposable incomes and generous lending offerings by mortgage lenders. However as the UK economy slipped into decline, the industry stagnated. The role of the estate agent is to act on behalf of a client in marketing residential property and undertake related...
Words: 2235 - Pages: 9
... 1. BERTHA MARERE 2. CELESTA KAGWI 3. ERASTO NZOTA 4. MARIA KALUSE 5. AZIZA ABDULRALMAN 6. AGNESS KILINDO 7. JOHN SIULAPWA 8. HENRY MFUMU 9. PAUL HUMBI 10. WAKIBARA NGETA DATE OF SUBMISSION: FRIDAY 16/11/2013. TABLE OF CONTENTS 1.0. INTRODUCTION. 1 1.1. The Mobile phone Industry of Tanzania 1 2.0 .PORTER’S FIVE FORCES FRAMEWORK MODEL, PFFF 1 2.1. Degree of rivalry among existing firms. 2 2.2. Threat of substitute Products or Service. 3 2.3. Threats of new entrants 4 2.4 Bargaining power of buyers/Customers. 5 2.5. Bargaining power of Suppliers 5 2.6. Mapping the Porter’s Five Forces Model in the Mobile Industry in TANZANIA. 5 3.0. CONCLUSION. 7 4.0.REFERENCE 8 ABSTRACT The Mobile Phone industry of Tanzania has been growing very slowly in terms of the number of firms in the industry during the last two decades. The growth rate in terms of the number of customers has been very fast. Number of things ishappening within the industry after its liberalization. The aspect of competition is now crucial for the operators who are within the Mobile Phone industry. Porter’s Five Forces Framework is one of the strategic models used to assess the attractiveness of the industry (being service or manufacturing). This model is defined by the five key forces which are; Rivalry among the existing firms, Threat of new entrants,Threat of substitutes, Bargaining power of suppliers and...
Words: 2552 - Pages: 11
...What is Federalism? Strayer University Debra Gordon To fulfill the requirements for POL110 Professor August 10, 2014 Abstract Federalism is an ideal structure of government for a nation whose citizens are divided by specific values or interests such as culture, distance or resources. In fact, federalism is a governmental system with different levels that are supreme or largely sovereign in different areas. In this essay, the main idea of federalism is described. In addition, advantages and disadvantages of federalism are identified throughout the essay. Moreover, the problems of government of a nation divided by culture, distance or resources are discussed. It is concluded that federal systems ought to distribute a balance of power between the general and constituent governments in order to fulfill different level requirements. Provide three (3) examples of how federalism has evolved from its origin to the American political system in place today. Federalism refers to the form of government that unites separate political entities or states within a single national system. However, federalism has a principle which allows each political entity or state to retain its independence. There are a number of countries that adopt the idea of federalism to form their government. A state that follows the federal system is known as federation. In fact, a federation is a political union of several states, by which effect is given to a certain state or stage of political thought...
Words: 3947 - Pages: 16
...The Five Forces Framework and Competitive Strategy In this framework due to Michael Porter there are two high-level stages in the creation of competitive strategy, each stage corresponding to a high-level determinant of profitability mentioned in the previous section. The first stage is the assessment of the attractiveness of the industry in which a given company is embedded based on a structural analysis of the industry. In this stage, called the five forces framework, five forces that influence industry attractiveness are identified, as well as the factors (e.g., number of competitors, size of competitors, capital requirements) that determine the intensity of each force and therefore the cumulative intensity of the five forces. The purpose of the five forces framework is to relate the degree (or intensity) of competition in a given industry, as qualitatively measured by the combined strength (or intensity) of five forces, to the attractiveness of the industry, defined as its ability to sustain profitability. Based on the structural analysis, a particular company may be in a very attractive industry (e.g., pharmaceuticals) or in an unattractive industry (e.g., steel). However, though a firm exists in an unattractive industry, it can still be highly profitable by choosing the proper competitive position within the industry, for example, e.g., a mini-mill such as Nucor in the steel industry in the nineteen-eighties. The second stage of strategy creation addresses the competitive...
Words: 679 - Pages: 3
...Article review - the 5 forces that shape strategy The article “The five forces that shape strategy” is written by Michael E. Porter. The article focuses on the “awareness of the five forces” (Porter, 78), the writer believes that it “can help a company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack” (Porter, 78). His objective is to provide the readers with a more in depth perspective of the framework of the “five forces”. In this article, Porter emphasizes on the framework of five forces namely: rivalry among existing competitors, threat of new entrants, threat of substitute products or services, bargaining power of buyers, and bargaining power of suppliers. We can refer the first there are as external sources, and the other two as internal sources. We can also think of the external and internal sources as micro and macro environments. The framework of the five forces collects massive different factors and put them into one simple model. Porter uses this framework as his base when analyzing an industry’s basic competitive situation. I think that Porter tries to tell the readers that of one wants to propose a feasible strategy, one should first confirm and analyze these five forces. Porter also addressed that each profession or each enterprise more or less must has to deal with the threat which the above each forces constitutes. According to the article “a company strategist who understands...
Words: 475 - Pages: 2
...ITERNATIONAL BUSINESS AND STRATEGY ANALYSIS, TESCO By Basheer Mohamad Hassan Alkhatib Student Number:@00406850 This Assignement is submitted for Professor Dr. Alistair Benson Salford University August, 3rd, 2014 Contents 1. Introduction 2 2. Analysis of the International Market 2 2.1 PEST Analysis: Tesco in Brazil 2 2.2 Market Specific Issues 4 3. Industry Analysis: Brazil 4 3.1 Competitive Rivalry in the industry 5 3.2 Bargaining Power of Suppliers 5 3.3 Bargaining Power of Customers 5 3.4 Threat of New Entrants 5 3.5 Threat of Substitutes 6 4 Company Analysis: Tesco 6 4.1 Resource Based View: Tesco 6 4.2 SWOT Analysis: Tesco 8 5. CAGE Analysis 9 6. Conclusion 11 7. References 12 1.Introduction Tesco Plc is the second largest retailer in the world and currently operates in over 6000 stores worldwide (Tesco Annual Report, 2014: n.p). This report analyses Tesco as an organisation and proposes a potential market for international expansion. The aim of this report is to analyse the international market’s environment and then indicate a potential strategy for Tesco to enter the market. The report initially works towards the analysis of the new market’s macro environment to understand key aspects linked with the proposed business market. This is followed by an internal analysis of Tesco and an overall external analysis of the retail industry in the new market. A strategic approach to enter the new international market is then presented...
Words: 3130 - Pages: 13
...PORTER’S FIVE FORCES MODEL Porter’s five forces is a framework developed by economist Michael E. Porter to analyze level of competition within an industry and business strategy development. Further, it determines the probability and attractiveness of a market or market segment. In 1979, Porter was an associate professor at Harvard Business School, the Porter’s framework maintains that the attractiveness of a market segment is determined by five competitive forces namely: 1. Threats of potential new entrants 2. Bargaining power of buyers 3. Bargaining power of suppliers 4. Threats of substitute products 5. Rivalry among competitors 1. Threats of potential new entrants The threat of new entrants is usually based on the market entry barriers, which can be said to provide obstacles for newcomers to gain a foothold in any given industry. These barriers can take many different forms. Briefly, it can be said that entry barriers exist whenever it is difficult or not economically feasible for an outsider to copy or imitate the existing player’s competitive capabilities. Common forms of entry barriers are depicted below: * Economies of scale * Capital requirement of entry * Access to supplies and distribution channels * Customer or supplier loyalty * Lack of experience in industry * Legal restrains such as trade barriers 2. Bargaining Power Of Buyers Important determinants of buyer power are the size and the concentration...
Words: 525 - Pages: 3
...Strategy 1 2 3 4 5 6 7 8 9 Course Overview and Strategy Concept Economics of Strategy Shareholder Value External Environment Internal Environment Competitive Positioning Diversification Mergers & Acquisitions Global Strategy Business Strategy Corporate Strategy Strategy Process 10 Organizational Structure and Control 11 Strategic Leadership © 2007 Prof. Dr. Bernd Venohr 2 Agenda Introduction to Strategy 4 External Environment - General environment analysis - Industry analysis - Summary and Outlook next Session © 2007 Prof. Dr. Bernd Venohr 3 Where are we today? Introduction to Strategy 1 Course Overview Strategy Concept 2 Economics of Strategy 3 Business Strategy 4 External Environment Shareholder Value Corporate Strategy 7 8 Diversification Global Strategy 5 Internal Environment 6 Competitive Positioning Mergers & Acquisitions 9 Strategy Process 10 Organizational Structure and Control 11 Leadership © 2007 Prof. Dr. Bernd Venohr Strategic 4 General purpose of external analysis Identify Opportunities: conditions that may help firm achieve strategic competitiveness Threats: hinders or constrains firm’s pursuit of strategic competitiveness Two types of environment Macro environment Micro environment (industry) Source: Robert M. Grant, Contemporary Strategy Analysis: Concepts, Techniques, Applications (5th edition, Blackwell, 2004) © 2007 Prof. Dr. Bernd Venohr 5 General environment...
Words: 5592 - Pages: 23
... technology processes and value adding activities materials supplier channels and distribution channels Markets • A market is defined in terms of shared: – – – – – products or services customers customer needs distribution channels Competitors Why the distinction between industry and market? • Businesses develop core competences within an industry which are then deployed in markets to satisfy customer demands – An industry can serve more than one market – A market can be served by more than one industry Analysis of the competitive environment • This involves assessing: – the extent of globalisation in the industry and market ‐ Yip’s globalisation driver framework – the nature and extent of competition ‐ Porter’s five forces or the resource‐based framework – strategic groups The network of business environments national macro business environment national industry national market The firm global industry global market global macro business environment Yip’s globalisation drivers • Analyse which aspects of industries and markets are global and which are local • Industry...
Words: 1527 - Pages: 7
...Competitive Forces Strategic Planning : an Overview We are here! (adapted from Johnson, Scholes, & Whittington, 2008) Ext. Environment: PESTEL Porter’s ‘diamond’/ 5 Forces Convergence Strategic Group Analysis Life Cycle Analysis Market Segmentation SWOT (0T) Business Level Strategies Strategic choices Strategy in Action Stakeholder expectations & purposes Internal environment: Resource audit Strategic Capability Value Chain/Networks Marketing ‘Mix’ Benchmarking CSF’s SWOT (SW) Culture Strategic Position STAGE 1 Innovation Organising Corporate Level Strategies Resourcing Managing Change STAGE 2 Evaluation Int. Strategies Interaction creates potential for: • Environment-led ‘fit’ or Resource-led ‘stretch’ • Competitive Advantage STAGE 3 Processes Practice The External Environment of Organisations n In this Topic (Topic 2) and in Topic 3 we will consider how to approach the issue of analysing the external environment of organisations in detail from a strategic management and planning perspective This will involve using the environmental scanning analysis tool introduced in Topic 1 It will be recalled in this regard that environmental scanning is a strategic activity in organisations and should be treated as such by management n n Analysing the External Environment The External Environment MacroEnvironment • • • • PESTEL Porter’s Diamond Key drivers Scenarios Industry/Sector/Task • • Porter’s 5 Forces Convergence ...
Words: 2197 - Pages: 9
...Competitive Forces ITM 524 - Foundations of Information Technology Management Module 2 – Case 1 Trident University International January 4, 2016 Value Chain and Competitive Forces The value that an organization creates and acquires is referred to as the profit margin. This means that the more value the organization creates the more profitable the it has a chance of becoming. In order for an organization to remain profitable, they must develop a competitive strategy. Michael Porter developed the concept of the “value chain,” which is a “set of activities that an organization carries out to create value for its customers (Porter's Value Chain, 2015).” The Five Forces The five forces model was developed by Michael E. Porter to help organizations evaluate the quality of a particular industry’s competitiveness and develop business strategies accordingly. The five forces are supplier power, buyer power, competitive rivalry, threat of substitution, and threat of new entry (Porter, 2008). Supplier Power With supplier power an organization determines how easy it is for suppliers to drive up prices. This is determined by the number of suppliers of each key input, the exclusivity of their product or service, their strength and control over the business, the cost of transferring from one to another, and etc. The scarcer the supplier choices an organization has, and the more the need for suppliers' help, the more powerful the suppliers become (Porter’s Five Forces, 2015)...
Words: 684 - Pages: 3
...Poters 5 Forces Application on Automobile Industry Topic: Apply the Porter's five forces model on Automobile Industry and analyse the attractiveness of the Industry for Investment purpose Evolution of Porter's Five Forces Model Five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. Michael Porter is a professor at Harvard Business School andis a leading authority on competitive strategy and international competitiveness. Michael Porter was born in Ann Arbor, Michigan. Five forces uses concepts developing, Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the industry profitability. An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition". Introduction Five Forces Model by Michael Porter Five Forces model of Michael Porter is a very elaborate concept for evaluating company's competitive position. Michael Porter provided a framework that models an industry and therefore implicitly alsobusinesses asbeing influenced by five forces.Michael Porter's Five Forces model is often used in strategic planning. Porter's competitive fiveforces model is probably one of the mostcommonly used business strategy tools and has proven...
Words: 293 - Pages: 2
...Dell Inc. is a global computer technology company that manufactures and sells PC, tablets, workstations and displays. Dell practices “Direct Business Model” that involves selling products directly to customers without intermediaries. Developed by founder and current CEO Michel Dell, this business strategy has proved to be highly effective in terms of gaining significant cost advantage in competition. Post navigation← PreviousNext → Dell Porter’s Five Forces Analysis Posted on September 1, 2015 by John Dudovskiy Porter’s Five Forces analytical framework developed by Michael Porter (1979)[1]represents five individual forces that shape the overall extent of competition in the industry. These forces are represented below: Porter’s Five Forces Threat of new entrants to consumer electronics industry is not significant due to cost and financial, knowledge and technological barriers. However, it is important to note that new businesses may overcome these barriers if they are able to introduce new products to the market based on innovative concepts. Large players such as Dell, Apple, HP, Samsung and Acer derive extensive benefits from the economies of scale and this fact represents an additional entry barrier to the consumer electronics industry. Bargaining power of buyers is immense due to the abundancy of offer and little differentiation amongst products. Moreover, there are usually no additional costs for Dell customers to switch to the competition and the majority...
Words: 903 - Pages: 4
...Porter’s 5 Forces model – Porter’s Strategic Group Analysis – Hypercompetition The General Environment • The external environment facing the organization consists of: • General environment • Competitive environment • The changes that occur in the general environment transcend organizations and industries • The competitive environment consists of the industry and markets in which an organization competes Some Interactions Between Businesses & Their Environment Customers Shareholders & Creditors National & Local Governments Media Suppliers Competitors Business Support Groups Wholesalers Public Opinion The Organisation Foreign Governments Social Activist Groups Local Communities Employees Adapted from K Davis & W C Frederick “Business and Society: Management, Public Policy, Ethics”, 5th Edition, McGraw-Hill, 1984 The General Environment • The figure shows the relationship between the organization and its external environment • Other things being equal, it is the competitive environment that has the greatest impact on the organization Figure 2.1 The General Environment • PEST analysis is useful for scanning the general environment • PEST is political, economic, social, and technological factors • PEST analysis can be used to identify weak signals that may point to a discontinuity shaping the environment • PEST provides a link between the general and competitive environment • Weak signals in the general environment can become forces for change...
Words: 1562 - Pages: 7
