Examine and discuss the evolving role of the CFO. What significa.docx - Examine and discuss the evolving role of the CFO What significant changes have

Examine and discuss the evolving role of the CFO. What significa.docx

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Examine and discuss the evolving role of the CFO. What significant changes have occurred in recent years? What changes do you see evolving in the next 10 years? Support each of your observations with credible references. (I've attached a document including links of this week's readings) Prepare analysis of the selected company's competitive strategy using Porter's 5 factor model. What are the competitive strengths of the company? What are the competitive weaknesses? It is recommended that you acquire the SWOT report for the company. (I've attached the SWOT for the company of American Express - please see attached. I also attached the Porter's 5 Factor Model as well.) What are the most important things that you learned from the study of this week’s readings and assignments? Remember to always include appropriate references. (I've attached a document including links of this week's readings)
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porter.xls Porters Industry Analysis MICHAEL PORTER'S APPROACH TO INDUSTRY ANALYSIS Source: Hunger, J. David and Thomas L. Wheelen, Essentials of Strategic Management, Upper Saddle River, NJ: Prentice-Hall (2003) Future 1: Forces Driving Industry Competition Source: Porter, Michael, Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press (1980) Potential Entrants Relative Power of Unions and Govern- ments, etc. Threat of New Entrants
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Other Stake- holders Industry Competitors Buyers Rivalry Among Existing Firms Bargaining Power of Buyers Suppliers Bargaining Power of Suppliers Threat of Substitute Products Substitutes Porter says that a corporation is most concerned with the intensity of competition within its industry. Basic competitive forces depicted in Figure 1, determine the intensity level. The collective strength of these forces determines the ultimate profit potential in the industry, where
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profit potential is measured in terms of long-run return on invested capital. The stronger each of these forces is, the more companies are limited in their ability to raise prices and earn greater profits. Porter mentions five factors - Other stakeholders is added to this analysis to reflect the power that governments, local communities, and other groups wield over industry activities. A strong force can be regarded as a threat because it is likely to reduce profits; a weak force can be viewed as an opportunity because it may allow the company to earn grater profits. WHAT IS THE THREAT OF NEW ENTRANTS? New entrants are newcomers to an existing industry. They usually bring new capacity, a desire to gain market share and substantial resources. Typically, they are threats to existing firms.
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The threat of entry depends on the presence of entry barriers and the reaction from competitors. A barrier is an obstruction that makes new entry difficult - some typical barriers are: 1. Economies of scale (scale gives existing firms advantage over new rivals).
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  • Fall '16
  • Christopher L. Litten, MA, Ph.D.

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