Question

What are the five forces of Porter's model? What are the specific elements that should be assessed under each of Porter's five forces? What is the difference between the company you are evaluating, the country industry and the global industry? What is the purpose of the Competitor Profile Matrix? What are different key success factors that a company would consider? What is the purpose of completing a partial SWOT (OT)? From where did the factors of the EFE matrix derive

Answer 1

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths. Five Forces analysis is frequently used to identify an industry's structure to determine corporate strategy. Porter's model can be applied to any segment of the economy to understand the level of competition within the industry and enhance a company's long-term profitability. The Five Forces model is named after Harvard Business School professor, Michael E. Porter

Porter's five forces are:

1. Competition in the industry

2. Potential of new entrants into the industry

3. Power of suppliers

4. Power of customers

5. Threat of substitute products

The number and power of a company's competitive rivals, potential new market entrants, suppliers, customers, and substitute products influence a company's profitability.

Difference

Country industry operate mostly or completely within their own country. They may import supplies or export products, but these activities normally represent a comparatively small share of total business activity. Country industry are typically governed by country securities laws. Their financial reports are normally constructed according to generally accepted accounting principles (GAAP).

Global firms have significant investments and profit centers in many countries, with no single center of dominance. Governance rules for global firms are generally determined by the laws of the official domicile of the parent company. Some global firms create financial statements according to GAAP for country investors, but more commonly, primary parent-company reports adhere to IFRS.

the purpose of competitors profile matrix

The profile matrix identifies a firm's key competitors and compares them using industry's critical success factors. The analysis also reveals company's relative strengths and weaknesses against its competitors. As a result, a company can easily identify the areas it should improve and the areas it should protect

The different key factors that a company would consider

• Strategic Focus (Leadership, Management, Planning)
• People (Personnel, Staff, Learning, Development)
• Operations (Processes, Work)
• Marketing (Customer Relations, Sales, Responsiveness)
• Finances (Assets, Facilities, Equipment)

Purpose of completing partial swot

We can say that the purpose of SWOT analysis is to study the internal and external environments of a company, through the identification and analysis of the strengths and weaknesses of the organization, and the opportunities and threats to which it is exposed.

Part of the purpose of SWOT analysis is to also assertively identify factors that influence the functioning of the organization providing very useful information in the strategic planning process.

You can divide SWOT analysis into two parts: the internal environment where strengths and weaknesses are identified, and the analysis of the external environment, where threats and opportunities are determined.