External Analysis

Question 1

Explain Porters Diamond

Answer 1

Porters Diamond analyses what advantages a country has for a particular industry

1) Factor conditions (factors of production)
2) Demand conditions (demanding local consumers eg. starbucks)
3) Related and supporting industries (knowledge sharing or easy access to components)
4) Strategy structure and rivalry - high competition in domestic economy / structure japan flat innovation.

Question 2

What is important when discussing Porters Diamond / what should the conclusion state

Answer 2

Must compare to other companies outside of the particular country. ‘How has this country helped the company compete globally’
Which factor has contributed the most.

Question 3

Explain TARA

Answer 3

Transfer ‘third party’
Avoidance ‘don’t take part’
Reduction ‘continue with activity but mitigate risk
Acceptance - tolerate losses that arise (if small)

Question 4

What are mitigating controls when it comes to risk explain part

Answer 4

Part of reduction 
Preventative controls
Corrective controls 
Directive controls 
Detective controls

Question 5

What to access when asked about risk

Answer 5

Identify the risk
What is the impact of the risk
What is the likelihood of the risk
What can be done to reduce risk