FORCE | NOTES | LEVEL | THREAT OF NEW ENTRANTS | -Inexistence of legal entry barriers;-High initial investments in the industry;-Existence of economies of scale;-Inexistence of switching costs for costumers. | MEDIUM | THREAT OF SUBSTITUTES | -There are no switching costs for costumers;-High interest in exotic products; | HIGH | BARGAINING POWER OF SUPPLIERS | -European packaging industry is highly concentrated;-There are no substitutes for the packaging input. | HIGH | BARGAINING POWER OF
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Global forces and the European Brewing industry –Case 1 Table of Contents Introduction……………………………………………………………2 PESTEL……………………………………………………………….2 Porter’s Five Forces…………………………………………………..4 Strengths & weakness of Companies………………………………..5 Impact of Trends on the Companies………………………………..7 Bibliography……………………………………………………………8. Introduction This case shows how global forces have impact on European brewing industry and how these companies are trying to overcome the obstacles. In spite
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2.1 FACTOR OF PRODUCTION According to Porter (2004)‚ factor conditions are factors of production such as labour‚ land‚ natural resource‚ capital and infrastructure. Moreover‚ a disadvantage might be an advantage. Local disadvantages in factors of production force to innovate to over come their problems. This innovation often results in a national comparative advantage. The big number of population in China provides retailers with a huge and cheap labour power. Furthermore‚ according to Day (1996)
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competitors are 1) Burger King‚ 2) McDonald’s and 3) Whataburger. The first financial ratio calculated was the current ratio. The industry percentage is .93‚ McDonald’s current ratio is 1.14 and Sonic is 1.72. Both companies have ability to pay back their short-term liabilities with their short-term assets. Debt to Equity: McDonald’s: .75‚ Sonic (-172.3) and the industry: 1.00. Sonic’s short-term debt has gone up from 22.9 in 2007 to 57.5 in 2009 and the long term has gone down from 727.2 in 2007
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STRATEGY HUMMAN REURCE AND MANAGEMENT Human resource management is concord with the management of the employees of in organisation. What is human resource management? * HRM is he management process concerned with efficient and effective utilisation of the organisations employees through the development of policies procedure practices so that the objectives of the organisation are achieved in the long term. * SHRM therefore implies that the organisation must have the
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Michael five forces model Rivalry among competing Firms: this is usually the most powerful of the five competitive forces. The strategies pursued by one firm can be successful only to the extent that they provide competitive advantage over the strategies of other firms (Grobler 2009) Due to China’s incredibly high FDI rate‚ more and more companies are investing into Chinese businesses and strengthening them in both their domestic markets and also on the global front. With the ever increasing
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interest in the study of the forces that impact on an organisation‚ particularly those that can be harnessed to provide competitive advantage. The ideas and models which emerged during the period from 1979 to the mid-1980s (Porter‚ 1998) were based on the idea that competitive advantage came from the ability to earn a return on investment that was better than the average for the industry sector (Thurlby‚ 1998). As Porter’s 5 Forces analysis deals with factors outside an industry that influence the nature
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decision points since strategic moves don’t have a single possible pathway. For instance‚ a pharmaceutical firm might grow its global footprint by first broadening its product arenas then using this foundation to broaden its geographic market arenas. 5. ECONOMIC LOGIC The economic logic element
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Porter’s Five Forces Analysis Threat of New Entry There are many companies manufacturing and selling office products at an international level. New entrants can find it easy to enter and establish their position in the market by basing their strategy on low cost. The market offers growth opportunities to new entrants as well indicating low entry barriers for the firms wanting to enter into the area of office products. Therefore it can be stated that Staples Inc is operating in an industry where the
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Rachelle Motter Prof. Dolores Chew HIS-910 09 April 2010 The Motorcycle Diaries The film Motorcycle Diaries is the biography of the early life of the communist‚ revolutionary Ernesto Guevara‚ also known as Che Guevara situated in Buenos Aires in 1952. He was a medical student‚ who left Argentina on a road trip with his friend Alberto Granado‚ a biochemist‚ to get to discover the rest of Latin America on an old motorcycle. The motive of their journey of several months was the desire to
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