4 Functions of Management and Porter 5 Forces Flashcards
What are the 4 functions of management (PLOC)
Planning, Leadership, organization, and control
Porters 5 forces? (BBTTC)
- Buying power of consumer
- Buying power of supplier
- Threat of new entry
- Threat of substitute products
- Competitive rival
What does porters forces determine?
whether a company will be “attractive or unattractive” and if they should enter a market
What must be scored to be deemed attractive?
3+
What does SWOT Mean?
S- strengths
W- weaknesses
O- oppurunitys
T- Threats
What are strengths and weakness considered in SWOT?
Internal factors
what does planning look at?
what are your planning tools? how do you plan successfully
use the 5 areas of success
use 6 QWL
What does organizing look at?
Know how? having tools?
What does control look at?
Looking back at past data and results and using it to do things better in the future
What does buying power of consumer look like?
Do consumers have influence on the price? who has the power? can consumers negotiate?
Eg. price match, car dealership
What does buying power of supplier look like?
Do we have more power than suppliers? Will they pay to be on our shelf?
Eg. Suppliers negotiate to be on targets shelf as they know they will do well
What is threat of new entry?
New competitors: do you have the infrastructure and money? do you have the knowledge and new tools?
Barriers to entering a market. If you want to open a business, is there a cost factor for entering the market? Are there regulations that make it more difficult (in another part of the rule)? Are more competitors going to enter? Will everyone enter because it is an easy market?
Eg. Walmart setting up in small towns before target, now target can’t set up as there would not be enough people
What is threat of substitute products?
Can you buy a product that fulfills the same needs elsewhere?
