ADMS 1000 Chapter 5: Reading 4 - Business Strategy

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Eytan Lasry

Document Summary

Reading 4 - chapter 5 - business strategy. Strategy is defined as 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. E. g. , air canada, westjet, and porter airlines operate in the airline industry where these three airline carriers share similar: Five-forces model: a prescriptive model developed by michael porter (1980) that allows for the systematic assessment of the industry environment. The relationships between these 5 forces and incumbent firms (already in the market) determine the attractiveness of the industry environment, which helps us to make strategic decisions about: Find a position in the industry where we can best defend ourselves against competition. The five forces: threat of new entrants: New entrants consist of new startups and diversification of existing firms in other industries.