confronted with the question of how the fit concept in strategic management is an appropriate idea or not for companies in the 21st century. After a short introduction about strategy which is defined by Michael E. Porter (1980)‚ we will describe some basic concepts. Cited by Porter (1985‚ 1996) and Thomson/Strickland (1998)‚ we find out that operational effectiveness is a helpful tool‚ but not enough for gaining competitive advantage. Strategies must be developed and it must match the organization
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Executive Summary The North American Industry Classification System (NAICS) code for the Coca-Cola Company is 3121 (U.S. Census Bureau‚ 2012). This NAICS code is used to identify Soft Drink Manufacturing. However‚ the icon Coca-Cola is not in this industry alone. The data of 2002 identifies 2‚908 competitors in this category (U.S. Census Bureau‚ 2002). This NAICS code encompasses establishments primarily engaged in manufacturing soft drinks and artificially carbonated waters. Although
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Profound understanding of the competitive environment is critical ingredient of a successful strategy. It helps the industry to uncover opportunities and threats‚ provides information about the nature of competition‚ reveals options for collaboration‚ and helps us design more effective strategies. Two types of environment - Business or general or macro environment -Industry environment The business environment of the firm consist of all the external influences that affects its decision
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competes on exactly the same products and services. The companies that we have selected are the closes in their business model‚ that each is involve in manufacturing television‚ audio equipment‚ mobile phones‚ cameras‚ and computers. We will use the porter five-factor model to analyze the industry and also focusing on the companies that we have selected. These industries have low threat of entry as has an exceptional barrier to entry that will preserve profitability. The manufacturing of these consumer
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control. These include all political events like tax policies‚ employment laws‚ trade reforms‚trade restrictions‚ political stability‚ environmental regulations‚ tariffs etc. The factors that should be taken into account when checking for the political forces that can affect the industry are: a. Political stability: The incumbent government must be stable which is true in India. b. International Stability: There is also international stability
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5 Forces Model 1. Threat of New Entrants.( LOW) a. The average person can’t come along and start up a bank‚ but there are services‚ such as internet bill payment‚ on which entrepreneurs can capitalize. Banks are fearful of being squeezed out of the payments business‚ because it is a good source of fee-based revenue. b. Another trend that poses a threat is companies offering other financial services. What would it take for an insurance company to start offering mortgage and loan services? Not
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Goal‚ viewed 3 March 2013‚ <http://www.businessdictionary.com/definition/goal.html>. Investopedia‚ 2013‚ Porter’s 5 forces‚ viewed 3 March 2013‚ <http://www.investopedia.com/terms/p/porter.asp#axzz2MgPuHMCf>. Investopedia‚ 2013‚ Competitive Advantages‚ viewed 3 March 2013‚ <http://www.investopedia.com/terms/c/competitive_advantage.asp#axzz2MgPuHMCf>. Mind Tools‚ 2013‚ Porter’s Five Forces‚ viewed 3 March 2013‚ <http://www.mindtools.com/pages/article/newTMC_08.htm>. OIRA‚ 2013‚ Defining Goals and Objectives
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the right trade-offs -Strategy rests on unique activities WINNER if you have a strategy that fits the environment -A cogent configuration of activities‚ incentives‚ systems that supports successful positions and makes the right trade-offs Porter: Firms can ONLY achieve sustainable competitive advantage if they have BOTH operations effectiveness and superior strategy. Strategic Activities Map: Picture map that identifies key activities of a firm (their tradeoffs and the investments that
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HEB has implemented Scanner Based Payment system in its all of its stores. Use of SBP produced reduction in transportation costs for HEB suppliers and reduction in inventory level for HEB. POS method increased accuracy and speed of checkout. POS also offer customer convenience and accuracy. SBP formed high level of trust between suppliers and HEB. HEB has installed Unix Mini-computers‚ which were linked to POS and then linked to HQ. Exchange of information regarding sales‚ orders and personel between
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Client-server computing is a method of distributed computing where one program (a client) makes a request to be fulfilled by another program (a server). 10. Porters value chain model: primary and secondary activities. 11. Value Chain: is the “set of activities through which a product or service is created and delivered to customers.” [1] There are five primary components of the value chain and four supporting components. The primary components are: Inbound logistics—getting needed
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