The paper "Industry and Business Strategy in Which the Company Operates in for Competitive Forces" is a wonderful example of an assignment on management. Question 1: Write the common departments in an organization Accounting department: The department is responsible for recording, measuring, and recounting financial information that is provided quantitatively from within the department. The accounting department also involves auditing personalities for accountability. Human resource department: This department is mainly involved with the management of the organization’ s human resources through the implementation of appropriate policies and procedures that ensure effective employee management.
The human resource department establishes human resource needs, acquires human resources, and maintains them. It involves employee appraisal for monitoring employee performance. Sales department: most organizations have a sales department separate from other departments. It mainly deals with selling of organization goods or services to customers with the goal of maximizing the organization’ s revenues through increased customer sales. Marketing department: organization department in charge of sales promotion of organization goods or services. The department is obligated to offer support to the sales department by increasing the number of products sold through awareness, sensitization, and promotion. Information technology (IT) department: Some organizations refer to it as management information systems (MIS) department.
It involves the application of information systems to solve business problems in the organization. Information systems comprise of procedures or policies, technologies, and people. Finance department: This department is concerned with vital matters in finance that affect the operations of the organization. The financial department observes laws, regulations, and social responsibilities while seeking to increase company value through efficient financial management. Production department: Also referred to as the operations management department. It is concerned with managing organization procedures and systems that are involved in transforming resources. Question 2: What are the porter’ s five force model and three generic models? Porter’ s five forces model is a framework analyzing the industry and business strategy in which the company operates in for competitive forces.
The model identifies open opportunities for a company to increase its profitability in the industry. Porter identifies those aspects surrounding the company, also referred to as micro-environment, which affects a company’ s potential to effectively serve its clients and increase its profits. Three forces identified by porter arise from the horizontal competition: the threat of a substitute product or service that are likely to steal customers, new market entrants who are likely to take up potential investment capital and threat of established rivals who are likely to be pitted against each other and the company by knowledgeable customers with an intention to force down prices. Two forces from the vertical competition include the supplier’ s bargaining power and customers’ bargaining power.
Suppliers who are influential will easily suppress profits by charging high prices on supplies while competition can cause customers to shift demand. Porter’ s three generic models illustrate ways of attaining a business competitive advantage through three general strategies.
These include broad cost leadership, focused or segmentation strategy, and broad differentiation or strategy which include demand and supply dimensions. Porter’ s broad strategies imply a larger market segment and his focused or segmentation strategy involves a specifically targeted market with differentiation or cost leadership. Porter suggests that applying one strategy is enough, however, a case of combination or multiple strategies can only be done with product differentiation strategy and market segmentation strategy.