3 Different management environments: 1. Micro Environment: Is whereby management has complete control in this environment. 2. Market/Task Environment: (aka industry environment) Management has some control and the environment surrounding the organisation. 3. Macro Environment: Management doesn't have complete control in this environment due to external forces beyond their control.
Porters Five Forces
1. Threats of Entry: = Are barriers put in place to ensure that no new competitors may enter the market very easily or at all.such as 1.establish economies of scale2. high capital requirements3.differentiated products 4. limited access of distribution 5. protection of government laws.
Powerful Suppliers: > They can dominate the competition as they can change the price willingly and when they are with competitors. Powerful Buyers: >They are your customers and have the most power in as they can change prices, play competitors off with each other. Substitute Products: > they serve as the limit profitabilty of an industry as they impose a price ceiling.
Jockeying for Position: > Is the intense rivalry amongst competitors within the same industry. >It can be done by price cuts, aggressive marketing, product innovation etc.