A Successful Strategic Management System

The task instruction is: Analyze Company G’s competitive environment utilizing Porter’s Five Forces Model of competitive forces. While headings below may provide some guidance for how to organize the paper, please refer to the recommended text (index topic: “Porter’s 5 forces model”), the learning community, and recommended web sites. As you will see from the reading, Porter’s 5-forces is a way to examine threats to a company’s success – which was competition imposes.

In talking strategy for any company, Porter’s Five Forces Model is likely to come up. It has served as a strategic planning guideline for years. If a company is just starting out, they would have to analyze the model and apply it to themselves from every aspect. If a company is well established, the model can serve as points that need to constantly be revisited. In going global, the tool becomes invaluable. It still only serves as a guideline, but it delivers significant points that have to be examined in a different culture of diverse laws and governmental controls. The following paragraphs will describe Porter’s Five Forces Model, describe how it can assist in going global, and examine possible limitations

In 1979 in Harvard Business Review was published article “How competitive Forces Shape Strategy” by Michael Porter who is nowadays recognized as specialist in competitive strategic planning and economic development. This leads to a development of five forces tool which described in his book “Competitive Strategy: Techniques for Analyzing Industries and Competitors” in 1980. In mid 90s to five forces tool was added sixth force. This model became powerful tool and helps manages to understand insights and outside perspectives of the company. That is undisputable fact that Michael’s five forces have made a huge impact on the strategic planning and identifying main factors that are driving competition. The only thing that makes to doubt in this

The dominant theoretical perspective on strategic management is the Five Forces Model or framework associated with the work of Michael Porter. Michael Porter was introduced The Five Forces Model (FFM) and the model are widely used as frame work to observe business strategy development and level of competition within an industry. The FFM consist of 5 fundamental of competitive forces. The five forces are the entry of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, the rivalry among the existing players

Employ the tools and techniques of strategic analysis, including frameworks such as industry structure, Porter’s five forces model, value chain analysis, portfolio analysis, and e-business models to business simulation analysis and to one’s own organization.

Michael Porter 's five forces model is in light of the comprehension that a corporate philosophy should meet the opportunities and dangers in the affiliation 's external surroundings. Especially, forceful strategy should base on a cognizance of industry structures and the way they change.

Porter identifies five forces that shape every industry and which determine the intensity and direction of competition and therefore the profitability of an industry. The objective of strategic planning is to modify these competitive forces such that the organization’s position is improved. Management can then decide, based on the information given by the Five Forces model, how to influence or to exploit industry characteristics.

Portfolio analysis is a technique, similar in some respects to capital budgeting but usually at the business rather than project level, used to examine the relative value of the various businesses, subsidiaries, or other units within a company, and to determine if a balanced "mix" has been achieved. This helps corporate-level planners reach a better understanding of the competitive position of the overall portfolio of businesses, to suggest strategic alternatives for the businesses, to understand the value of acquiring new businesses, and, overall, to develop priorities for resource allocation. Often, this is done through use of portfolio matrices, a set of graphic displays that help managers visualize the portfolio along two dimensions: usually an external dimension related to the overall attractiveness of the industry, and an internal one that relates to the strength of the business within that industry.

The Five Forces Strategy model was first introduced in the Harvard Business Review in 1979 in an article “How Competitive Forces Shape Strategy” authored by Michael Porter. Dr. Porter is the Bishop William Lawrence University Professor at Harvard University, based at Harvard Business School in Boston. In 2008, Michael Porter presented an updated and extended version of the original article in the Harvard Business Review named “The Five Competitive Forces That Shape Strategy. The latest version offers a deeper view on how the model should be used and it’s implications for strategy

This paper extends the REA framework to include broader definitions of the model terms and encompass the balanced scorecard’s learning and growth perspective information requirements. The balanced scorecard includes financial and nonfinancial measures from which performance is compared to as part of a strategic management system. The REA framework focuses on economic activity (very close to the traditional accounting view) whereas the balanced scorecard goes beyond economic information to include external information not directly tied to economic events and strategic initiatives. By extending the REA framework financial (traditional accounting information) and nonfinancial information (included in the balanced scorecard) can be tightly integrated. The extended conceptual model furthers the REA ontology and its applications.

Nowadays, organizations is facing rapid change to the business environment where it becomes more complex than it were before. Indeed, these situation means that businesses need to find strategy to analyzing the implications of these changes and modifying the organizations reaction itself towards these situation. The strategies that the organization will apply also require gaining a complete understanding of the external environment of the organization. While understanding the macro-environment of the business is important, organization also need to have great understanding of the competitors and the impact they will bring to the organization (Dobbs, 2014). In 1979, Michael E. Porter, a Harvard Business School student introduced five key forces that determined the essential appeal of a business sector in a long run (Schachter, 2012). Porter’s Five Forces is a framework that analyzes and identifies strategy of an industry, and also determines the weakness and strength of an industry, where the activities of the competitors also involved. Porter’s Five Forces is cover understanding strategy of bargaining power of supplier, bargaining power of buyer, competitive rivalry, threat of substitution, and lastly threat of new entry. In addition, by having good understanding where the power rely on, businesses may take advantage by gaining strength or improve the weakness and evade taking wrong decision. Porter’s Five Forces will help organizations to define the market properly and

In today 's dynamic and competitive business environment, survival, growth and profitability are the essence goals of all industries. Nowadays, Porter 's Five Forces model is currently being adopted as the powerful management tool of choice by many organizations. The essence of this model is that it can help senior managers to make right decision and build and sustain competitive advantages in the organization level. This document presents the overview approach of Porter¡¦s five forces framework across organizations. And critically evaluation of porter¡¦s five forces model mainly focused on identifying the benefits and limitations of it and exploring some perceived issues or problems regarding implementation. Finally the

Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company 's top management on behalf of owners, based on assessment of the internal and external environments in which the organization competes. It can be told as "the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. Strategies are established to set direction, focus effort, define or clarify the organization, and provide consistency or guidance in response to the environment.

The organisation needs to be more than just competitive here-and-now. The competition for industry leadership is just as crucial to firms as is the competition for developing the right competencies in the right time. Thus, strategic management is also about integrating time horizons and activities related to all three kinds of competition. This often means finding those issues that should be kept invariant for the time being and adjusting other activities and issues accordingly.

Michael Porter’s five forces model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should be based on an understanding of industry structures and the way they change.