Porter’s five forces Model: Assignment
Added on -2020-12-31
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THE MAIN THREESTRATEGY
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
INTRODUCTIONStrategic Models contains plan of action or design to improve process of entity. Manyorganisations use these models for meeting goals and operations of business. In this report it willcover three strategies which are input output model, Pestle analysis and Porter’s Five ForcesModel. Pestle Analysis is helpful for analysing impact of external factors on business. This toolis used when there is need to launch a new project. It includes Political, Economic issues andmany more. It also covers Porter’s five forces Model. This is a way from which this tool is usedfor understanding competitive business environment and recognising of potential profitability. MAIN BODY PESTLE Analysis It is a tool which is used for reviewing of various factors like Political, Economical,Technological and many more. This helps any type of business to take benefit of opportunitieswhich are present in market (Collie and et.al.,2016).Political Factor- this factor refers to how government is interfered in economy. In thisfactor involves changes made by government policies for trading, Internal and political issues.Some other factors are also discussed under this are foreign trade policies, labour laws, traderestrictions, tax policy and many more. It impacts on business and reaction on changes in currentand future regulations. This factor impact on business if any change in law which effect workingcriteria.Economical Factor - this refers to organisation has effect on business with profitabilityposition of entity. The factors included under this are economic growth, income level ofconsumer, interest rate, exchange rate, inflation rate and many more. It will affect business interms of profitability. Factors are also divided in two parts; macro and micro. Macro factors orissues which is not governable inside enterprise areas and Micro are controllable and impactbusiness in somewhat in small manner. Like if inflation rate goes high which affects business inevery aspect. All income level consumer will not able to buy product due to increase in prices. Itis affecting on its profitability position of business. Social Factor - it refers to common impression and attitude of people. This factor includes changes in age, gender, attitude, education level, population growth, health conscious. All these factors affect business directly. This is due to marketers who understands demand of 1
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