Porter's 5 Forces

Question 1

bargain meaning?

Answer 1

to deal; agrement

Question 2

Porter’s 5 forces?

Answer 2

1. threat of new entrants to the market
2. the bargaining power of suppliers
3. the bargaining power of customers
4. threat of substitude products entering the market + changes in technology
5. degree of existing competitive rivalry!!!

Question 3

What is the meaning of SUBSTITUDE PRODUCTS?

Answer 3

a product that can be used in place of another. zamenitel’ tipo

Question 4

What is the problem with using Porter’s 5 forces?

Answer 4

it is not easy/simple to obtain all required information about THREATs that exist and market situation.

Question 5

Which competitive advantages are included in Porter’s Generic Strategies are used?

Answer 5

1. Cost Leadership
2. Differentiation
3. Focus or niche

Question 6

MBO - ?

Answer 6

Management by Objectives

Question 6

The ADVANTAGES of MBO?

Answer 6

1. improved motivation of employee
2. interaction and involvement of both managers and employees
3. organisation should work towards the same goal
4. if objectives are set by employees, they are more likely to be accepted and done.

Question 7

The DISADVANTAGES of MBO?

Answer 7

1. the business is likely to be concentrated more on goals rather than on a concise and achievable plan
2. MBO needs to consider a whole organisation.
3. meeting the targets at any cost may result in poor outputs.