Who is more competitive? Why? What makes them competitive?

TOPIC:Topic 1: Business Organization and Environment LESSON TITLE:Porter’s 5 Forces Model (H/L) COMPETENCY FOCUS: Entrepreneurship (S4): To develop your entrepreneurial skills in preparing a realistic proposal for a new business start-up. You will understand the process a business will have to go through when starting up, including the underlying principles of starting a business. [IB Learner Profile Development: Knowledgeable] Learning Objectives By the end of the lesson, you should be able to… LO1) To recall Porter’s Five Forces Model LO2) To describe Porter’s Five Forces Model using examples LO3) To examine Porter’s Five Forces Model in providing a framework for assessing the competitive environment SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development. CRITICAL THINKING KEY: Knowledge Application Analysis Evaluation

Michael Porter -A famous management researcher -Developed a strategy that looks at how competitive industries can be -He is the author of 18 books and numerous articles including Competitive Strategy, Competitive Advantage, Competitive Advantage of Nations, and On Competition. -He works at Harvard Business School

What is Porter’s Five Forces Model? Porter identified five factors that act together to determine the nature of competition within an industry. These are the: Threat of new entrants to a market Bargaining power of suppliers Bargaining power of customers (“buyers”) Threat of substitute products Degree of competitive rivalry

Research Now, go to er_five_forces.htm er_five_forces.htm Make notes on each of Porter’s strategies.

Essay Question Examine Porter’s Five Forces Model in providing a framework for assessing the competitive environment.

Reflection Reflect on what you have learnt this lesson. What do you need to know more about?