...What is force field Analysis? Force field analysis is a management technique developed by Kurt Lewin, a pioneer in the field of social sciences, for diagnosing situations. It will be useful when looking at the variables involved in planning and implementing a change program and will undoubtedly be of use in team building projects, when attempting to overcome resistance to change. Kurt Lewin assumes that in any situation there are both driving and restraining forces that influence any change that may occur. Driving Forces: Driving forces are those forces affecting a situation that are pushing in a particular direction; they tend to initiate a change and keep it going. In terms of improving productivity in a work group, pressure from a supervisor, incentive earnings, and competition may be examples of driving forces. Restraining Forces: Restraining forces are forces acting to restrain or decrease the driving forces. Apathy, hostility, and poor maintenance of equipment may be examples of restraining forces against increased production. Equilibrium is reached when the sum of the driving forces equals the sum of the restraining forces. In our example, equilibrium represents the present level of productivity, as shown below. Steps involved in Force Field Analysis Step-1 : Prepare the statement of the problem or issues under study (note : make sure that the statement is indicative and provide clear understanding and perspective regarding the cause variables). Step-2...
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...Lewin’s Force Field Analysis Lewin’s force field analysis is a decision making tool used to look at the driving and restraining forces of the present or desired state of the business - usually . It looks at the forces in relation to whether it is helping or I will use this to assess whether using an app strategy will ultimately benefit Nintendo in increasing it’s market share. Nintendo should have used something such as this type of planning tool because it lays out the different forces that for and against that certain decision (change). However, Lewin’s force field analysis does have limitations, in terms of being subjective as to how each force is weighted. As I am an external party looking at the industry, what I may feel significant may not apply for the professionals in the industry. So to counteract this each restraining or driving force evidence from different sources to underpin the logic. Driving Forces...
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...Forcefield Analysis - Kurt Lewin’s model Sociologist Kurt Lewin developed a 'force field analysis' model (1951) which describes any current level of performance or being as a state of equilibrium between the driving forces that encourage upward movement and the restraining forces that discourage it. Essentially this means that a current equilibrium exists because the forces acting for change are balanced by the forces acting against change. The driving forces are (usually) positive, reasonable, logical, conscious and economic. The restraining forces are (usually) negative, emotional, illogical, unconscious and social/psychological. Both sets of forces are very real and need to be taken into account when dealing with change, or managing change, or reacting to change. Forcefield Analysis restraining forces (against change) current equilibrium driving forces (for change) Increasing the driving forces is not enough for change, as the restraining forces remain in place, and as long as they remain in place it becomes harder to use the driving forces. An analogy is when you push against a spring; the more you push, the harder it becomes and as soon as you stop pushing the spring reverts to its previous position (after having sprung past that point). Therefore unless both the driving and restraining forces are balanced a kind of yo-yo effect results; a change and then a reversion back, and then a change, and then a reversion...
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...five competitive forces that shape industry competition. * Explain how disruptive innovations, government policies, complementary products and services, and other factors affect how the competitive forces operate. * Identify the components of the value chain and explain its extended version. * Describe how information systems apply to competitive strategies for business. * Explain how information systems apply to strategy for nonprofit organizations and governments. * Explain why the role of information systems in organizations shifts depending on whether the systems are deployed to run, grow, or transform the business. * Solutions to Chapter Review Questions 1. What are the five competitive forces that shape industry competition? How are these forces interrelated? The five forces that influence industry competition are (1) threat of new entrants, (2) power of buyers, (3) power of suppliers, (4) threat of substitutes, and (5) rivalry among existing competitors. The five forces determine industry structure and how profitable companies in the industry will be. The five interrelated forces are “internal” to the industry. 2. How do disruptive innovations, government policies, complementary products and services, and environmental events affect how the competitive forces operate? Disruptive innovations, government policies, complimentary products and services, and environmental are “external” forces that affect how the five forces operate. For example...
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...with the presentation of the company’s mission and vision. This explanation is intended to introduce readers in the environment of this company. The values of the company are also presented. It is important to identify these values in order to determine the strategic options that the company should address. The paper continues with the Environmental Analysis. This section describes the microenvironment and the macro environment, with the most important components. The internal and external environments are also address. In this case the most important components of the company’s environment are represented by the economic, social, and technological environment, but also the company’s customers, employees, managers, suppliers, owners, the government, and the community. These factors, their importance and characteristics are also addressed. The SWOT Analysis is another important section of the strategic plan. Its importance relies on the identification and discussion of the company’s strengths, weaknesses, but also of the opportunities and threats that the company must take into consideration. The Five Forces Analysis helps understand the industry in which this company develops its activity. Therefore, readers can learn about the competition, power of buyers, power of suppliers, threat of substitutes, and market entry barriers in the restaurant industry. The paper continues with the Strategic Direction section. In this case, readers are presented the strategy that...
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...NDUSTRY ANALYSIS Industry analysis is a tool that facilitates a company's understanding of its position relative to other companies that produce similar products or services. Understanding the forces at work in the overall industry is an important component of effective strategic planning. Industry analysis enables small business owners to identify the threats and opportunities facing their businesses, and to focus their resources on developing unique capabilities that could lead to a competitive advantage. "Many small business owners and executives consider themselves at worst victims, and at best observers of what goes on in their industry. They sometimes fail to perceive that understanding your industry directly impacts your ability to succeed. Understanding your industry and anticipating its future trends and directions gives you the knowledge you need to react and control your portion of that industry," Kenneth J. Cook wrote in his bookThe AMA Complete Guide to Strategic Planning for Small Business."However, your analysis of this is significant only in a relative sense. Since both you and your competitors are in the same industry, the key is in finding the differing abilities between you and the competition in dealing with the industry forces that impact you. If you can identify abilities you have that are superior to competitors, you can use that ability to establish a competitive advantage." An industry analysis consists of three major elements: the underlying forces...
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...Title: The Fall of IBM Date: September 20, 2013 I. Executive Summary The purpose of this case study analysis is to analyze the situation of IBM in the 1990s, to come up with possible mutually exclusive alternatives for IBM’s management and ultimately, to recommend a possible strategy to regain back IBM’s throne in the industry. The problem of the case study is all about the survival of IBM in a much more competitive market ever encountered by the company. And also, overcoming new challenges brought about IBM’s new management and the dynamic technological environment. The methods of analysis used for this case study are the Porter’s Five Forces Model and the ANSOFF matrix analysis. Brief explanations were provided in each of the methods used for analysis. After analyzing the case study, the following three mutually exclusive alternative course of action were developed: 1. Decentralize Management; 2. Invest heavily on research and development and; 3. Partner with suppliers From the alternatives, I recommend that IBM should partner with its suppliers. Collaboration with suppliers will increase business flexibility and executive level business decision support. This will surely bring the most benefit for the company among the other alternatives course of action. The suppliers play a great role in the industry and having strong connections with them can help the company survive and even excel in the industry. Outline and Implementation: ...
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...Porter’s Competitive Forces Model Question: Why was allocated model developed? In the 1970’s, there was a change in market place of the industries. The industries were transforming from local sellers to global sellers. At that time the industries needed to know and strengthen their competitive position in order to survive in the market place. Competition was increasing because of the change in market place. Earlier, industries used to sell their products to the local buyers only. But lately, they had started selling their products globally. Thus, due to this change in the buyer community there was a need for industries to protect themselves against competition from other industries and achieve competitive advantage. (Kippenberger, 1996) Competitive advantage is like achieving a better place than competitors. The industries can achieve competitive advantage by proper formulation and analysis of their strategies. Michael Porter (1979) developed five forces model for strategy analysis and formulation. These forces analyze the opportunities available and threats to the industries. Thus the analysis helps the managers gain a better understanding of the strategies that are useful for industries to achieve their goals. (Kippenberger, 1996) Question: What is the model? Porter’s Competitive Forces Model is for strategy analysis. The model represents five major external forces that can affect a company’s profitability and competitive advantage. Threats of entry, Powerful...
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...Porter's 5 Forces Analysis • Threat of New Entrants. Because the biotech industry is filled with lots of small companies trying to hit the jackpot, the barriers to enter this industry are enough to scare away all but the serious companies. Biotech firms require huge amounts of funding to finance their large R&D budgets. Having ample cash is one of the biggest barriers, so when interest rates are low, or the equity markets are receptive to initial public offerings, the barriers are lower. Specialization also creates barriers. For instance, knowledge about cancer and heart disease is quite high, whereas a company focusing on something more obscure would likely have a low threat of new entrants because there are very few experts in this field. • Power of Suppliers. Biotech companies are unique because most of their value is driven by intellectual property. The nature of their business does not force them, unlike other industries, to rely on suppliers. Scientific tools, materials, computers and testing equipment is highly specialized, but the likelihood of these companies invading on their line of business is not very high. One snag is that marketing alliances have often proved to be problematic. Small biotech firms don't have the distribution capabilities to promote their new drugs, so they are forced to license their drugs to other suppliers. • Power of Buyers. The bargaining power of customers has different levels in the biotech arena. For example, a company that sells...
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...UMUC Haircuts Stage One Wesley Mantlo University Maryland University College Information Systems in Organizations (IFSM 300) UMUC Haircuts Stage One This report is based on gaining intellectual technology knowledge from a business standpoint. The Porters 5 Forces Analysis will be used as the beginning stage into this continuing project. UMUC Haircuts will be used as the background story to gain real world experience through creating solutions around Porters 5 Forces Analysis. This report is written in stages with gradual information given as is required. Stage II, minimally explains the forces, how they are relevant to the UMUC Haircuts, Impact and whether or not it will impact the strategy. Porters Five Forces are: Buyer Power, Supplier Power, Threat of Substitute Products or Services, Threat of New Entrants, and Rivalry among Existing Competitors. Buyer Power is the force that the buyer has on a product. UMUC Haircuts will want to bring in the most amounts of customers to gain the financial footstep in the Haircut industry. This is a positive impact and can affect the strategy. Supplier Power is big in the Haircut industry, especially as it pertains to personal hygiene. This is a positive impact and will affect the strategy. The threat of Substitutes in this industry is high with a neutral impact and does not affect the strategy. Generally, people who cut other peoples hair are personal friends or a fad and there is always months of opportunities where...
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...systems (MIS) and describe the three important organizational resources within it – people, information, and information technology. 2. Describe how to use break-even analysis to assess the financial impact of information technology. 3. Describe how to use Porter’s Five Forces Model to evaluate the relative attractiveness of and competitive pressures in an industry. 4. Compare and contrast Porter’s three generic strategies and the run-grow-transform framework as approaches to the development of business strategy. CHAPTER SUMMARY This chapter serves two primary purposes. First the chapter introduces your students to the broad notion of management information systems within an organization and the three key resources on which MIS focuses – people, information, and information technology. Second, the chapter jumps right into the process of appropriately selecting which technologies to use based on the industry in which your organization operates, the identified business strategies for competing in that industry, and how to assess the impact of technology. The primary sections of this chapter include: 1. MIS Resource #1: Information 2. MIS Resource #2: People 3. MIS Resource #3: Information Technology 4. Financial Impact of IT: Break-Even Analysis 5. Industry Impact of IT: Porter’s Five Forces Model 6. Strategy Impact of IT: Porter (Again)...
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...PORTERS FIVE FORCES Porter's Five Forces is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. Porter referred to these forces as the micro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. The five forces of porter’s five forces model are as follows: 1. The threat of the entry of new competitors 2. The threat of substitute products or services 3. The bargaining power of customers (buyers) 4. The bargaining power of suppliers 5. The intensity of competitive rivalry 1. The threat of the entry of new competitors Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. The new entrants face barriers to entry. They need to overcome them to compete successfully. Some of the barriers are capital requirement, customer loyalty, experience, etc. Specialized technology, production and distribution require high capital costs which acts as one of the barrier. The high customer’s loyalty and experience of the established firms also...
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...STRATEGIC ASSET. WITHOUT INFORMATION, AN ORGANIZATION SIMPLY COULD NOT OPERATE. THIS CHAPTER INTRODUCES STUDENTS TO SEVERAL CORE BUSINESS STRATEGIES THAT FOCUS ON USING INFORMATION TO GAIN A COMPETITIVE ADVANTAGE, INCLUDING: • The core drivers of the information age • Data, information, business intelligence, knowledge • Systems thinking • Competitive advantages • Porter’s Five Forces model • Porter’s three generic strategies • Value chain analysis Many of these concepts and strategies will be new to your students. Be sure to explain to your students that this chapter offers an introduction to these concepts and they will gain a solid understanding of the details of these concepts as they continue reading the text. SECTION 1.1 – BUSINESS DRIVEN MIS Competing in the Information Age The Challenge: Departmental Companies The Solution: Management Information Systems SECTION 1.2 – BUSINESS STRATEGY Identifying Competitive Advantages The Five Forces Model – Evaluating Industry Attractiveness The Three Generic Strategies – Choosing a Business Focus Value Chain Analysis – Executing Business Strategies | | |SECTION 1.1 | |BUSINESS DRIVEN MIS ...
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...QUESTION: Choose an industry in which you would like to compete. Use the five forces method of analysis to explain why you find that industry attractive. Porter’s Five Forces Method Industry: Car service industry Introduction Michael Porter is a professor at Harvard Business School and is a leading authority on competitive strategy and international competitiveness. 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. Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation. These are: 1. Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are. In the car service industry, for company owned players the bargaining power of suppliers is less as it can get constant supply of spare parts including OEM parts (Vehicle manufacturer’s brand) and OES parts (reputed brands of component manufacturer’s either domestic or international, supplying to vehicle manufactures or aftermarket)....
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...Mekayla Lowe Business Case Analysis Apple dominates the tablet market with the iPad. Our client could potentially obtain newer technology, including some potential breakthrough features but so do Apple's other competitors. Thus, bringing a new tablet to market will take 12-18 months, during which Apple could release a new tablet and the competitive environment could also shift. Our client could buy analyst reports, field a survey, conduct focus groups, or even use a concept testing service to evaluate their tablet's chances. But the high potential for the market to shift makes this difficult. To truly understand whether and how to enter the market, they need to simulate how consumers would react to their product introduction based on different market scenarios. The client could maximize their chances of success by building a forecasting model that takes into account consumers' preferences for different brands and product features, as well as consumers’ informed opinions on what products they would prefer in different market scenarios. While their main objective is to decide whether to release their tablet, they really have three goals: * Understand which product features are most important to consumers * Quantify their potential market share and profit opportunity based on the current market * Understand the impact on potential market share and profit opportunity of Apple introducing a new tablet device A standard discrete choice study by using the strategy...
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