Porter's Five Forces, Value Chain, Balanced Score Car

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Critically evaluation of Porter's five forces, Value Chain Analysis, Balanced Scored Card

Given the demands of today's competitive and dynamic environment, it is quite challenging to understand strategic issues facing organizations and develop the capability for long term organizational success. This report aims to present a critically analysis of three frameworks across organizations: Porter's Five Forces, Value Chain and Balanced Scorecard. Such critical evaluation includes identifying the benefits and limitations of three frameworks and considering some implementation issues within organizations.

As powerful strategic management tools, Porter's Five Forces, Value Chain and Balanced Scorecard frameworks are linked and interacted each
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The five forces analysis helps in identifying and determining the attractiveness of an industry, the source of competition. And because Porter's five forces reveal insights on profitability, it can inform important decision decisions about whether to leave or enter industries or sectors. Moreover, the model can be used to compare the impact of competitive forces on the own organization with their impact on competitors. Competitors may have different options to react to changes in competitive forces from their different resources and competences (Pearce and Robinson, P.92). This may influence the structure of the whole industry.

The five forces framework can be used to gain insight into the forces at the work in the business environment of a strategic business unit which need particular attention in the development of strategy. Porter's five forces framework is of great importance in developing strategic options to improve relative performance in the industry or influence relative position in industry. (Johnson and Scholes,P.119).Because strategic choices need to take account of the external environment especially pay attention on Porter's Five Forces in which the organization operates: competitive advantage may be eroded as substitute products due to technology changes or as new competitors enter market.( Porter, 2001) For example: a leading manufacturer of vacuum tube with strong position in the electronic

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