Unit 2A_ Business Strategy Presentation

Unit 2A_ Business Strategy Presentation - ACCT 4115 UNIT...

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ACCT 4115 UNIT 2A: Business Strategy Analysis Notes and Narration by Jo Lynne Koehn, University of Central Missouri
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The Importance of Strategy Analysis Strategy drives the actions of an organization. Studying a firm’s strategy provides: An understanding of what drives risks, profitability, and competitive advantages A basis for future performance to be forecasted An idea of how to measure the success of a firm’s actions
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Porter’s 5 Forces: Industry Structure and Profitability
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Competitive Force 1: Rivalry Among Existing Firms Higher degrees of competitio n among firms: Push prices towards the marginal cost of production. Make non-price dimensions of products or services more important. Determinants of the intensity of competition among firms: Industry growth rate . Concentration and balance o f competitors.
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Rivalry Among Existing Firms , continued Determinants of the intensity of competition among firms: Degree of differentiation
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Unit 2A_ Business Strategy Presentation - ACCT 4115 UNIT...

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