1. (a) Give examples of how political-legal forces and technological forces have presented an opportunity or a threat to a particular industry or business organization.
Political –legal forces are the most important factor in both opportunity and threat on an industry. Hence, both political legal forced and technological forces are a key factor in determining the mechanics of an industry. First of all, political legal factors determine the entry and exit barriers. Thus, if they were favorable; an increasing number of companies would set up in such industry and vice versa. For example, Pakistan’s manufacturing industry, if the political and legal factors are favorable, more industries will want to set up in Pakistan. Moreover, technological forces are those influences that developments in technology have on consumers, business and society in general. From an industrial point of view there are both advantages and disadvantages. For example, due to a rise in technology, more and more robots and machines are there to replace actual labor. For instance, in the manufacturing industry many machines now are replacing employees; hence, these replacements have resulted in negative technological forces such as increased unemployment. Nonetheless, technological forces have also brought upon to such industries better management information systems, and improved communication.
(b) What is the difference between core competence and distinctive competence of an organization? What is the competitive power of resource strength? Competency is defined as the ability of a firm to conduct an activity well. It is built and developed by firms consciously through experience and learning. It resides in people in the firm and not in physical assets. -Core competency: is an activity central to a firm’s profitability and competitiveness that is performed well by the firm. Core competencies create and maintain firm’s ability to meet the critical success factors of particular...
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