Name: Nour Alaa Abdeen

ID: 71729

Subject: BUS404

Dr.Amal

Summer 2022
1-Define strategic management and draw a diagram for the Comprehensive
Strategic-Management Model. Why has strategic management become so
important to today's corporations?

- The management of an organization's resources to accomplish its goals and objectives is

known as strategic management. It include establishing goals, assessing the external and
internal environments of the firm, reviewing tactics, and ensuring that management
implements the strategies across the entire organization.

- Because the strategic management involves:

* The ability to recognize the interaction between customer requirements, customer
demand, competitors and their products, and its own society and its ability to meet
customer needs.
* The ability to identify the need for change: change in societies occur today in many
more directions than before.
* The ability to imagine change strategies: the determination of the strategy is both an
intellectual process, one of obtaining the accession process, and a creative process.
* The ability to use the tools of change: knowledge of components of strategic
management and some knowledge of traditional attitudes towards strategy problems are
an excellent aid to good management.
* The ability to put the strategies used: any mental effort and creativity you put into
designing a strategy will only be a huge waste of time if your ideas are not implemented .

2- Discuss the six segments of the general environment:

1.The Political / Legal segment:

    Organizations and interest groups battle for attention, funding, and a voice in
governing the body of rules and regulations governing interactions between nations in the
political/legal segment. In other words, this section focuses on how businesses and other
organizations try to influence the government and how the government influences them
in response. 

2. The Demographic segment: 

       The population or societal traits that make up the larger environment are of interest
to the demographic group. Size, age, structure, geographic dispersion, ethnic diversity,
and income distribution are all noteworthy characteristics.

   3. The Economic segment:

       The economic environment in which a corporation currently competes or may

compete in the future is described in the Economic segment. Important characteristics
include interest and inflation rates, trade and budget deficits and surpluses, savings and
investment rates for individuals and businesses, and gross domestic product.

   4. The Technological segment:

       The organizations and activities involved in generating new information and

transforming it into novel outputs, products, processes, or materials make up the technical
section.

   5. The Sociocultural segment:

       The attitudes and cultural values of a society are the focus of the sociocultural sector.
   6. The Global segment: 

       The global segment comprises crucial cultural and institutional aspects of global
markets, as well as relevant emerging global markets and old ones that are changing.

3- Discuss and provide examples of factors that would lead to greater buyer
power and the factors that would cause a supplier group to become powerful?
Illustrate.

- There are four major factors to consider when determining the bargaining power of
buyers:

  1. Number of buyers relative to suppliers: If the number of buyers is small relative to

that of suppliers, the buyer’s power will be  stronger.
2. Dependence of a buyer’s purchase on a particular supplier: If a buyer is able to get
similar products/services from other suppliers, buyers depend less on a particular
supplier. Therefore, the power of the buyer would be greater.

3. Switching costs: If there are many alternative suppliers available, the cost of switching
is low. Therefore, buyer power would be high.

4. Backward Integration: If the buyer is able to integrate or merge suppliers, the buyer
has greater bargaining power over the existing suppliers.
  
Buyer Power is High/Strong if:
- Buyers are more concentrated than sellers.
- Buyer switching costs are low.
- Threat of backward integration is high.
- Buyer is price sensitive.
- Buyer is well-educated regarding the product.
- Undifferentiated product.
- Buyer purchases product in high volume.
- Substitutes are available.
- Buyer purchases comprise large portion of seller sales.
 - There are five major factors when determining the bargaining power of suppliers:

1. Number of suppliers relative to buyers.

2. Dependence of a supplier’s sale on a particular buyer.
3. Switching cost (switching costs of suppliers).
4. Availability of suppliers for immediate purchase.
5. Possibility of forward integration by suppliers.

When is Bargaining Power of Suppliers High/Strong?

 Switching costs of buyers are high.
 Threat of forward integration is high.
 Small number of suppliers relative to buyers.
 Low dependence of a supplier’s sale on a particular buyer.
 Switching costs of suppliers are low.
 Substitutes are unavailable.
 Buyer relies heavily on sales from suppliers.

4- Discuss the five-forces model of competition and address how Internet and
digital technologies affect the Porter five forces. How the five forces (Industry
Analysis) can be used to determine the average expected profitability in an
industry:

1. Industry competition:
 
          This variable takes into account the number and power of competitors in the
market. Additionally, it contrasts the caliber of each rival's goods and services. 
When there are numerous businesses with comparable size and influence in a given
industry, competition is fierce. Customers have an inexpensive option of switching
businesses. Because of this, companies are more inclined to start aggressive advertising
and marketing campaigns in a competitive market and cut their pricing in order to draw
in customers. The profits of a corporation may be affected by these tactics. 
If there are few businesses selling the same things, there is little competition in the
market. They have greater chances to develop and make money. The following factors
can influence competitive rivalry: 

. number of rivals .
. a variety of rivals .
. Product variations.
. Quality variations .
. Industry balance.
. Industry growth.
. Customer loyalty to existing brands.
. Barriers (high costs) to exit the industry.

2. The threat of new entrants: 

   This aspect takes into account how simple it is for rivals to enter the market. Existing
businesses run the risk of losing some of their clients and earnings if more enterprises
enter a particular industry. If businesses can enter the market quickly and cheaply or if
your company's inventions or technologies are not shielded by patents or other legal
protections, there is a high risk of new competitors. 
The following factors could make it more challenging for rivals to establish themselves: 

. Government policies .
. customer adherence to current brands .
. High entry expenses .
. Limited distribution options .
. technology required .
. need for experience .
. the benefits of scale

3. The threat of substitute products: 

  This element takes into account how simple it is for clients to transition between related
goods or services. Many items that meet the identical needs of clients are
interchangeable. When customers utilize products interchangeably, businesses lose out on
a portion of the market's earnings. If businesses start reducing their prices in an effort to
compete with alternatives, profits also fall. Companies run the danger of having clients
manufacture their own versions of a good or service if it is so simple to produce that there
are numerous alternatives. 
Threats posed by alternative products to a corporation can be influenced by a number of
factors, including:

    . The number of substitute products.

    . The quality of substitute products.
    . The price of substitute products.
    . The customer's likelihood to switch between products.
    . Customers' perceived difference between products.
    . The competition's aggressiveness.
    . The competition's profits.
 4. Bargaining power of buyers: 

     This component takes into account how price changes impact consumers' purchasing
choices and their capacity to drive down market prices. When there are fewer buyers
overall, but there are many substitute products available, buyers have more negotiating
leverage. As a result, they may drop prices and reduce business profits. When buyers
make little purchases and have limited other product options, they have less leverage
during negotiations. 
The following factors may have an impact on how much influence customers have over a
company's pricing:

 . The number of customers.

. How much product each customer is buying.
.The buyer's ability to substitute products.
. The buyer's sensitivity to price.
. The buyer's access to information (such as on the internet) so they can compare
products and prices.

5. Bargaining power of suppliers:

This element takes into account the number of suppliers a business has access to as well
as how readily suppliers can raise their prices or lower the quality of their products. It is
simpler for a corporation to switch to a supplier that charges less or delivers a higher-
quality product if there are more options available. If there aren't many suppliers of the
goods a business requires, those that do have more clout and can command higher prices.
Profits for the business can suffer as a result. 
The following factors can impact a supplier's influence over a company's profits:

 The number of suppliers.

 The size of the suppliers.
 A company's ability to find substitute suppliers.
 The uniqueness of the supplier's product.
 The quality of the supplier's product.
 The strength of the supplier's distribution channels.
 The volume of product needed.
 The cost of switching suppliers.
 The industry's importance to the supplier's business.
-Because of the Internet, the traditional competitive forces are still at work, but
competitive rivalry has become much more intense. Internet technology is based on
universal standards, making it easy for rivals to compete on price alone and for new
competitors to enter the market. Because information is available to everyone, the
Internet raises the bargaining power of customers, who can quickly find the lowest-cost
provider on the Web. Some industries, such as the travel industry and the financial
services industry, have been more impacted than others. However, the Internet also
creates new opportunities for building brands and building very large and loyal customer
bases, such as Yahoo!, eBay, and Google.

- This publication describes five forces that influence an industry. The publication
includes a set of application questions that will help you evaluate the structure of the
industry you are in or are considering entering. The more you understand about the
strength of each force, the better able you will be to respond.
The forces affecting profitability are often beyond your control, so you must choose
tactics to respond to the forces rather than try to change the business environment. This
publication offers insight on specific tactics you need for success when facing
competitive situations. While you may assess any one force individually, you will gain
the most value by assessing all five of the forces.

5- Explain the relationship between the SWOT approach to evaluating the

general environment, the industry of the firm, and the competitive
environment:

6- Describe the four generic strategies - overall cost leadership,

differentiation, focus cost leadership, and focus differentiation:

Cost leadership is a successful business approach when a company offers competitive pri
cing, delivers acceptable quality, and draws in enough customers to be profitable.

A differentiation strategy is a tactic used by organizations to attract clients by offering the
m something distinctively different from what their rivals could be selling in the market. 
Increasing competitive advantage is the key goal of implementing a differentiation strateg
y.

Focused cost leadership:

Targeting a small market necessitates a focused cost leadership strategy that relies on pric
e competition. A company that uses this method may not always have the lowest prices in 
the sector.
A focused differentiation strategy requires offering unique features that fulfill the
demands of a narrow market. As with a focused low-cost strategy, narrow markets are
defined in different ways in different settings.