What is industry structure view of strategy?
Porter’s industry structure view of strategy is based on the industry as the unit of analysis with the relative bargaining power of the players and barriers to entry into the industry as primary sources of supernormal profit.
What is industry structure in strategic management?
Industry structure is defined as the basic, underlying characteristics that shape the competitive strategy for a group of firms producing products that are close substitutes for each other (Porter, 1980).
What are the views of strategy?
Strategy may be viewed as the rationale that governs the organization’s choices among its alternatives. Traditionally, strategy has been viewed as simply a result of the planning process. A company’s goals are set in motion, an its intended strategy is undertaken to achieve them.
What is included in industry structure?
The industry structure has five components as Figure 6.9 indicates—competitors, potential competitors, substitute products, customers, and suppliers. Each plays a role in determining the intensity of competition in explaining why some industries are historically more profitable than others.
How do you structure an industry analysis?
- Step 1: Give a brief overview of the industry.
- Step 2: Review trends and growth patterns that have existed within the industry.
- Step 3: Identify factors that influence the industry.
- Step 4: Using data gathered through research, the industry forecast anticipated growth.
What’s the role of the board in strategic planning?
Specifically, there is a widely shared belief that strategy formulation is fundamentally a management responsibility and that the role of the board should be confined to making sure that an appropriate strategic planning process is in place and the actual development—and approval—of strategy is left to the CEO.
How does a board of directors influence strategy?
Through a combination of independent sessions and two formal discussions with the CEO, the board established a much stronger foundation for a subsequent dialogue with management about strategy.
Is the Board of a young company Strategic?
The board of a young company usually needs to wrestle with different strategic issues than the board of a long-established company, and the board of a company in a young and chaotic industry generally needs to operate differently than the board of a company in a mature industry.
How can I make my board more strategic?
Sign up for a free account: Comment on articles and get access to many more articles. Clarity of thought about the strategy context, strategy content, the strategy process as well as the strategic outcomes need to be laid bare for the board to be effective in executing its agency. It is really an excelente article.