BU481 Study Guide - Final Guide: Switching Barriers, Vertical Integration, Product Differentiation
Document Summary
Performance matrix: classifies operating performance & org health as roughly positive/negative, asks 3 questions: Balanced score card: asks 4 basic questions: Direction (vision/mission/values: vision = future where are we going , mission statement = present who are we and what we do , values = basic beliefs that govern indv & group bhvr in organization. Porters 5 forces (to test profitability: collective strength of forces determines ultimate profit potential of an industry, industry is ideal when: Can keep this threat low through: economies of scale, product differentiation, capital requirements, cost advantages (e. g. learning, experience, access to distribution channels, government policy. Influencing factors of supplier bargaining power: concentration relative to industry competitors. High concentration: high bargaining power: switching costs (high=supplier power, importance of industry to supplier. More important = less power: possibility of integration forward. Influencing factors of buyer bargaining power: concentration large vs. small volumes. Large volumes of standardized product = high bargaining power: level of product standardization.
