BUS 800 Lecture Notes - Lecture 1: Pest Analysis, Risk Aversion, Fixed Cost
Document Summary
The business environment of a firm consists of all the external. The core of the firm"s business environment is formed by its (cid:1) influences that affect its decisions and performance. (cid:1) (cid:1) and legal factors. (cid:1) (cid:1) relationships with three set of players: customers, suppliers, and competitors. Starting point for industry analysis is a simple question: what. What determines of industry profit: demand and the prerequisite for profit is the creation of value for the customer. The profits earned by the firms in an industry are thus determined by (cid:1) The value of the product to customers. The bargaining power of the producers relative to their suppliers. *industry analysis brings all three factors into a single analysis. Factors that determine the intensity of competition and levels of. 3 horizontal competition from substitutes, competition from (cid:1) framework. (cid:1) (cid:1) (cid:1) (cid:1) competition in different industries. (cid:1) entrants, and competition from estabilished rivals (cid:1) (cid:1) (cid:1)
