The Five Factor Model
THE FIVE –FACTOR MODEL
James Baron and David Kreps had given the Five-Factor model, which is based on Michael Porter’s Five Forces model of business analysis (Porter, 1980). These factors will influence the Competitive Intelligence system in any organization. These factors are External Environment, Workforce, Organizational Culture and Structure, Organizational Strategy, and Technology of Production and Organization of Work (Baron & Kreps, 1999). Lack of correspondence between any one of these factors can lead the firm’s CI practices to the failure.
Figure 15.1 The Five-Factor model. (Source: Adapted from Baron & Kreps [1999]).
External Environment
The External Environment component takes into consideration social, political, legal, and economic forces. Social forces are based on society’s widespread norms and acceptances and consider the social responsibilities of the firm. Political forces are those forces that are enforced and expected by both the corporation and the government. Legal forces concern the lawful responsibilities of the organization and the rights that its workers hold, both individually and as a group. Finally, economic forces relate to conditions in the local labor market including the degree of labor mobility and the competitive economic pressures the organization may face (Baron & Kreps, 1999). These forces influence CI endeavor to collectively address the concern of corporate ethics and the maintenance of ethical standards.
Social Forces
Employees misunderstanding can lead an effect on the organization, it is important that companies establish internal codes of conduct and outline ethical obligations. Unethical business practices can create undesired results in their employees such as confusion, misaligned judgment, and dissatisfaction. These employees may eventually leave the company or produce sub-optimal work. In both scenarios, the company will have wasted valuable resources.
Political and Legal Forces
CI
James Baron and David Kreps had given the Five-Factor model, which is based on Michael Porter’s Five Forces model of business analysis (Porter, 1980). These factors will influence the Competitive Intelligence system in any organization. These factors are External Environment, Workforce, Organizational Culture and Structure, Organizational Strategy, and Technology of Production and Organization of Work (Baron & Kreps, 1999). Lack of correspondence between any one of these factors can lead the firm’s CI practices to the failure.
Figure 15.1 The Five-Factor model. (Source: Adapted from Baron & Kreps [1999]).
External Environment
The External Environment component takes into consideration social, political, legal, and economic forces. Social forces are based on society’s widespread norms and acceptances and consider the social responsibilities of the firm. Political forces are those forces that are enforced and expected by both the corporation and the government. Legal forces concern the lawful responsibilities of the organization and the rights that its workers hold, both individually and as a group. Finally, economic forces relate to conditions in the local labor market including the degree of labor mobility and the competitive economic pressures the organization may face (Baron & Kreps, 1999). These forces influence CI endeavor to collectively address the concern of corporate ethics and the maintenance of ethical standards.
Social Forces
Employees misunderstanding can lead an effect on the organization, it is important that companies establish internal codes of conduct and outline ethical obligations. Unethical business practices can create undesired results in their employees such as confusion, misaligned judgment, and dissatisfaction. These employees may eventually leave the company or produce sub-optimal work. In both scenarios, the company will have wasted valuable resources.
Political and Legal Forces
CI