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Analysis Assignment Help is a solution of Porter’s ‘Five Forces’ Analysis Assignment Help that describes about Porter’s five forces analysis is a tool that helps to identify weakness and strengths of the business industry through its five competitive forces.

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Analysis Assignment Help | Financial Statement Analysis Assignment HelpPorter’s five forces analysis is a tool that helps to identify weakness and strengths of the business industry through its five competitive forces. The following diagram gives an idea about the Porter’s Five Force Model –

(Foodtech-portal.eu 2016)

As per the opinion of Tookes (2008), five forces model of Porter’s the significant five components are:

  • Competition in the Industry: In the recent times competition has become huge in each and every industry and hence the companies are making relevant efforts in order to possess competitive advantage over the other firms so as to sustain in the market for long and to achieve success as well.
  • Potential of New Entrants into an Industry: It is mostly low for the large companies having economies of scale and has been able to sustain in the market for long. However it is high for the new companies or the companies which have not been able to crave its position in the market for long.
  • Power of Suppliers: It mostly relates to the power of the suppliers in influencing the price rates products offered by the companies. It is mostly high if the number of suppliers is few and hence has the capability of altering the price rates of the raw materials.
  • Power of Customers: It also refers to the impact of the customers on the pricing decisions of the products. It is high when the number of alternatives available in the market is very high which in turn provides the opportunity to the customers to choose from the available options. Hence the decisions lay completely on them regarding the purchase of the product and especially those commodities which are not considered to be necessities for the customers.
  • Threat of Substitutes: Due to the significant increase in competition within the world of business in the recent time the probable threat of the substitutes is also a matter of concern for the companies as they can hamper the sales of the products drastically.

Mendelow’s stakeholder analysis

The stakeholder analysis is mostly done for the purpose of business administration, project management and for conflict resolutions as well. It can broadly defined as an effective process of identifying the people or the individuals who play a crucial role in the decisions making policies of the company are also affected by the overcome of the policies or decisions accordingly.  Stakeholder analysis is mostly done once in an year in order to analyze the attitudes of the stakeholders or the shareholders of the company. It is also commonly known as ‘Mendelow’s Power Grid Matrix’.

The diagram provided below shows the model of Mendelow’s stakeholder analysis –

(knowledgegrab.com 2016)

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Key Players: This category of stakeholders is extremely important for the smooth function of the company as they have the capability of influencing the operations of the company significantly. They are also considered to be the major drivers to the change as they can influence the decisions as well as the strategies of the company and can stop them if they are convinced by the same.

  • Keep Satisfied: It is indeed very crucial for the company to keep such stakeholders satisfied as they can gain power and influence the operations of the company by joining the stakeholders belonging to the category D.
  • Keep Informed: Such stakeholders are involved in the decision making policies of the company but they lack the power to influence the same. However the management team of the company requires providing justification regarding the strategies adopted by the company to such stakeholders. Thus, such stakeholders are important for the company as they can gain sufficient power by combining or joining the category C or D.
  • Minimal Effort: They are mostly easy to convince and lack the power to influence the decisions of the company.

Porters 4 corners analysis

This model was developed by Michael Porter and is considered to be a predictive tool which proves to be helpful in determining the probable course of actions of the competitors of the concerned company. It is mostly known for highlighting those factors which acts as motivating factors for the competitors.

The following diagram provides an insight regarding the concept of Porter’s Four Corner Analysis:

(youtube.com 2011)

Moreover the above model also proves to be helpful in determining the value system, assumptions, mind set as well as the internal culture of the competitors which ultimately helps the concerned to company to identify the probable actions of its competitors in the future and hence the company can frame its future strategies accordingly. The drivers and the management assumptions are considered to be the motivating factors of the competitors whereas the current strategies as well as the capabilities are considered to be the actions or the probable actions taken by the competitors.

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