ADMS 1000 Study Guide - Midterm Guide: Lululemon Athletica, Horizontal Integration, Organizational Culture

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Shahab Modirmassihai

Document Summary

The plans made or the actions taken in an effort to help an organization obtain its intended purposes. Industry: a group of organizations that share similar resource requirements, including raw materials, labour, technology, and customers. Five-forces model: a prescriptive model developed by michael porter that allows for systematic assessment of the industry environment. The five forces include the threats of new entrants, the bargaining power of suppliers, the bargaining power of the buyers, the threats of substitutes, and rivalry among existing firms. Clearly, if you wanted to manufacture cars or planes, you would need millions if not billions of dollars to buy raw materials, build assembly lines, and so on. Thus, the threat of new entrants is reduced as the level of required capital increases: switching costs: the costs, monetary and psychological, associated with changing from one supplier to another from a buyer"s perspective.