MGT 4893 Lecture Notes - Lecture 4: Perfect Information, Vertical Integration, Switching Barriers
30 Jan 2017
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L as t week : porter"s 5 forces, firm"s external environment. O uts ide of the firm is the indus try & macro-environment. Mac ro-e nvironm ent - c omponents of the e xternal e nvironment: National & international e conomy (confidence in economy) E nerg y & natural e nvironment (energ y s upply & climate chang e) S ocial s tructure & d emog raphy (ag ing population) D riv ers of c hang e (in mac ro -env ironm ent) R eg ulations (climate chang e leg is lation) R es trictions for entry into indus try. No t e : g overnments have created monopolies for utility companies , provided that they inves t in the initial infras tructure: p erfec t c om petition. Identical p roducts (no way to trans form the product into a unique one)
