1 The Commercial Airline Industry October 17th, 2014 Ben Cohen Z23106977 Global Strategy and Policy Man 4720 Professor Harry Schwartz Finance Major 2 In  this  paper,  a  Porter’s  analysis  will  be  conducted on the commercial airline industry. The Porter analysis is a means of measuring the intensity of the competitive forces associated with an industry. The competitive forces consist of threat of new entrants, rivalry among existing firms, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and relative power of other stakeholders. Each of these 6 competitive forces will be analyzed and rated high, medium or low in strength based on their intensity. Threat of New Entrants: Low Companies that are considering or attempting to enter the airline industry will have extreme difficulty, as a result of the many entry barriers they will encounter. These entry barriers are why the threat of new entrants in the commercial airline industry is considered low. Airline companies operating in today’s industry have a large inventory of aircrafts and offer many flight availabilities. They are able to use economies of scale to effectively provide flexibility to travelers. The existing airline companies will capitalize on their economies of scale as a competitive advantage and entice travelers with their low-cost fares for the same service. This is why in the airline industry many companies seek to gain strategic alliances with other companies. Forming strategic alliances allows companies to add new routes and increase sales revenue, without substantially increasing their capital investment. An example of this is the joint venture agreement between Delta Air lines and Virgin Atlantic Airways Ltd. This agreement allowed them to form a “fully integrated  joint  venture  that  will  operate  on  a  “metal  neutral”  basis  with  both  airlines   sharing the costs and revenues, from  all  joint  venture  flights”  (Delta  Air  Lines,  2012).   This agreement will allow these two airlines to provide a seamless network between North America and the U.K. for their customers. These alliances have changed the dynamic of the industry. Another barrier to entry into this industry is the extremely high capital requirements. It takes a large amount of initial capital to buy inventory of large commercial aircrafts. However, it is not just the initial capital that is crucial; it is also the steady capital  needed  to  maintain  these  aircrafts.  “Domestic  carriers spent $11.6 billion 3 last year on capital improvements. Over the past five years U.S. airlines have retired nearly 1,300 planes”  (Mayerowitz,  2014). This is substantial evidence of the financial intensity associated with entry into this industry. Another barrier to entry is government policy. Government policy in the past played a much larger role, how ...

1. 1
The Commercial Airline Industry
October 17th, 2014
Ben Cohen
Z23106977
Global Strategy and Policy
Man 4720
Professor Harry Schwartz
Finance Major
2

2. In this paper, a Porter’s analysis will be conducted on the
commercial airline
industry. The Porter analysis is a means of measuring the
intensity of the competitive
forces associated with an industry. The competitive forces
consist of threat of new
entrants, rivalry among existing firms, threat of substitute
products or services,
bargaining power of buyers, bargaining power of suppliers, and
relative power of other
stakeholders. Each of these 6 competitive forces will be
analyzed and rated high, medium
or low in strength based on their intensity.
Threat of New Entrants: Low
Companies that are considering or attempting to enter the
airline industry will
have extreme difficulty, as a result of the many entry barriers
they will encounter. These
entry barriers are why the threat of new entrants in the
commercial airline industry is
considered low. Airline companies operating in today’s industry
have a large inventory of
aircrafts and offer many flight availabilities. They are able to

3. use economies of scale to
effectively provide flexibility to travelers. The existing airline
companies will capitalize
on their economies of scale as a competitive advantage and
entice travelers with their
low-cost fares for the same service. This is why in the airline
industry many companies
seek to gain strategic alliances with other companies. Forming
strategic alliances allows
companies to add new routes and increase sales revenue,
without substantially increasing
their capital investment. An example of this is the joint venture
agreement between Delta
Air lines and Virgin Atlantic Airways Ltd. This agreement
allowed them to form a “fully
integrated joint venture that will operate on a “metal
neutral” basis with both airlines
sharing the costs and revenues, from all joint venture flights”
(Delta Air Lines, 2012).
This agreement will allow these two airlines to provide a
seamless network between
North America and the U.K. for their customers. These alliances
have changed the
dynamic of the industry.

4. Another barrier to entry into this industry is the extremely high
capital
requirements. It takes a large amount of initial capital to buy
inventory of large
commercial aircrafts. However, it is not just the initial capital
that is crucial; it is also the
steady capital needed to maintain these aircrafts. “Domestic
carriers spent $11.6 billion
3
last year on capital improvements. Over the past five years U.S.
airlines have retired
nearly 1,300 planes” (Mayerowitz, 2014). This is substantial
evidence of the financial
intensity associated with entry into this industry.
Another barrier to entry is government policy. Government
policy in the past
played a much larger role, however today, it is no longer a
strong barrier to entry into the
airline industry. This is the case because on October 24, 1978,
the Airline Deregulation
Act was passed. “Federal controls over the entry and exit

5. of airlines, flight schedules,
airfares and quality control of service were abolished” (Morris,
2013). Although
government policy is no longer a strong entry barrier, the
difficulty new companies face
with economies of scale and capital requirements still make the
threat of new entrants
low.
Rivalry among Existing Firms: High
A major challenge facing the companies in the airline industry
is the rivalry
among existing firms. Even though the number of competitors is
low, airline companies
face intense competition. This intense competition is a direct
result of the Airline
Deregulation Act in 1978. Prior to this act, “flying was
absurdly expensive. There was
one simple reason why flying was absurdly expensive. That
was the law” (Morris, 2013).
The deregulation of the airline industry allowed companies to
adjust prices and thus make
the market more competitive and price sensitive.
Another challenge is the high amount of fixed costs airline

6. companies face.
Companies must fly their planes on schedule, whether at full
capacity or not. This is a
key factor that illustrates the competiveness of the industry.
Regardless of the situation,
airline companies must find a way to entice customers to fly
with them, and that often
means lowering ticket prices. “To cover its costs, an airline
must have on average 65% of
its seats occupied, a share that increased since
deregulation” (Rodrigue, 2014).
Companies must then sell there remaining tickets at a price that
gives them no profit
simply because it’s better to redeem some money, than to lose
the entire amount on an
empty seat. As a result of this, companies must formulate a
strategy to increase sales, or
they will operate at a loss.
4
Diversity of rivals is another factor that plays a role in the
rivalry among firms.

7. For the most part, all airlines provide the same services and
therefore it is very difficult
for companies to differentiate themselves. This lack of diversity
increases competition
and ultimately drives prices down. “Over the last 10 years or
so, Allegiant Travel and
Spirit Airlines have pioneered a new “ultra-low-cost-
carrier” business model in the
airline industry” (Weinberg, 2014). This example clearly
illustrates the intense rivalry
airline companies face and their willingness to provide low-cost
fares to gain market
share.
Threat of Substitute Products or Services: Medium
The airline industry faces potential competition from other
forms of substitute
products. These substitutes consist of other forms of travel such
as cars, buses, railroads,
and cruises. “For trips between 100 and 500 miles, express
buses, trains, and airlines are
all vying for customers and contemplating the future of these
shorter trips” (Webber,
2012). Substitute transportation methods pose serious
competition threats to short

8. domestic flights. Driving offers the customer the most
flexibility and therefore must be
taken into consideration by airline companies. Although these
are legitimate alternatives
to flying, threat of substitutes is still ranked as medium because
with the increased
industry competition, airlines are forced to offer consumers
comparable low-cost fares. In
addition to the comparable prices, airlines offer a faster and
more convenient method of
travel than any other form of transportation. More so, when it
comes to long distance
trips, airlines face very few substitutes and that is why airlines
will continue to be the
dominant method of transportation for longer trips.
Bargaining Power of Buyers: Medium
Passengers are considered the buyers in the airline industry. In
the airline
industry, alternative suppliers are plentiful. As a result,
passengers have the ability to
search all the different airline rates and choose the best option.
The fact that the airline
industry is pretty standardized really gives the buyer strong

9. bargaining power. “The shift
in the airline industry over the past four decades has
been towards more price sensitivity”
(The Economist, 2012). In addition, changing costs are very
little. If a customer is not
5
satisfied with an airline, they can easily switch to another
company with no cost. There is
essentially no commitment by a passenger. Since passengers can
easily find an alternative
flight, airlines don’t have much pricing power and
therefore buyers bargaining power
plays a major role in the airline industry. This directly
correlates with the increase in
customer demand for cheaper tickets.
Bargaining Power of Suppliers: High
In the airline industry, the main suppliers are the airplane and
part manufacturers. The
two main suppliers are Airbus and Boeing and between them,
they have significant power
and dominance over the airline industry. “The gap in annual
orders for Airbus and

10. Boeing has been very narrow, which is indicative of the intense
competition that exists
between these two airplane manufacturers” (Trefis, 2014).
The airline industry has a
limited amount of suppliers and Airbus and Boeing have high
credibility and therefore
have a strong demand for their products. “Airbus has increased
the average list prices of
its aircraft by 2.6 percent across the product line” (Airbus,
2014). Examples that illustrate
these two suppliers high bargaining powers are the low amount
of other suppliers, high
built up switching costs and the uniqueness and superiority of
their products. As a result
of this, Airbus and Boeing are able to charge a premium.
Relative Power of Other Stakeholders: Medium
The airline industry faces the power of other stakeholders such
as the government. The
government agency that is most relative to the airline industry
is the Transportation
Security Administration. The Transportation Security
Administration’s main goal is to
manage the security policies of the airline industry. “The

11. Office of Security Policy and
Industry Engagement Commercial Aviation Airlines Branch
develops new policy,
reviews existing policies to address evolving threats to
commercial airlines, and provides
regulatory oversight of commercial airlines” (TSA, 2014). As a
result, the TSA imposes
strict regulations for the safety of travelers. “Airline
operators must adhere to rules on
security and training or face fines, suspension of operating
licenses, or even face criminal
charges” (Stoltz, 2014). These penalties force airline
companies to encounter additional
costs to meet these standards. This is why the power of
government regulations plays a
significant role in the airline industry.
6
Works Cited
"Delta and Virgin Atlantic To Form Strategic Alliance." Delta.
Delta Air

12. Lines, 11 Dec. 2012. Web. 11 Oct. 2014.
<http://news.delta.com/index.php?s=20295&item=124142>.
Mayerowitz, Scott. "As Planes Age, Airlines Go On A Record
New Jet
Shopping Spree." The Huffington Post. TheHuffingtonPost.com,
09 Jan. 2014.
Web. 11 Oct. 2014.
<http://www.huffingtonpost.com/2014/01/09/airlines-new-
planes_n_4567196.html>.
Morris, David. "Airline Deregulation: A Triumph of Ideology
Over Evidence." The
Huffington Post. TheHuffingtonPost.com, 13 Dec. 2013. Web.
11 Oct. 2014.
<http://www.huffingtonpost.com/david-morris/airline-
deregulation-ideology-
over-evidence_b_4399150.html>.
Rodrigue, Jean-Paul. "Operating Expenses of the Airline
Industry." The
Geography of Transport Systems. N.p., 2014. Web. 11 Oct.
2014.

13. <https://people.hofstra.edu/geotrans/eng/ch3en/conc3en/airlinec
osts.html>.
Webber, Robbie. "Buses, Rail, and Airlines Compete for Short-
distance Intercity Travel
SSTI." State Smart Transportation Initiative. N.p., 30 Oct.
2012. Web. 12 Oct.
2014. <http://www.ssti.us/2012/10/buses-rail-and-airlines-
compete-for-short-
distance-intercity-travel/>.
Economist, The. "Airlines Would Like To Be Legally Exempt
From Telling You How
Much Your Flight Actually Costs." Business Insider. Business
Insider, Inc, 31
Dec. 2012. Web. 12 Oct. 2014.
<http://www.businessinsider.com/airlines-and-
ticket-prices-2012-12>.
7

14. Trefis. "Boeing Leads Airbus In The Race For New Commercial
Airplane Orders
In 2014." Forbes. Forbes Magazine, 18 Aug. 2014. Web. 12 Oct.
2014.
<http://www.forbes.com/sites/greatspeculations/2014/08/18/boei
ng-leads-airbus-
in-the-race-for-new-commercial-airplane-orders-in-2014/>.
Airbus. "Price Adjustment for Airbus' Modern, Fuel-efficient
Aircraft Family." New
Airbus Aircraft Lists Prices for 2014. Airbus, 13 Jan. 2014.
Web. 12 Oct. 2014.
<http://www.airbus.com/presscentre/pressreleases/press-release-
detail/detail/new-
airbus-aircraft-list-prices-for-2014/>.
TSA. "Commercial Airlines." Transportation Security
Administration. Transportation
Security Administration, 29 Jan. 2014. Web. 12 Oct. 2014.
<http://www.tsa.gov/stakeholders/commercial-airlines>.
Stoltz, Brenda. "Navigating TSA, DOT, and FAA Security
Requirements for Airline
Operators." NATA Compliance Services Blog. N.p., 17 Apr.

15. 2014. Web. 14 Oct.
2014. <http://info.natacs.aero/blog/bid/381857/Navigating-TSA-
DOT-and-FAA-
Security-Requirements-for-Airline-Operators>.
ACG 2021 Midterm Assessment
1. Prepare year-end adjusting entries for each of the following
situations (omit explanations): 3 points each.
a. The Supplies account showed a beginning debit balance of
$400 and purchases of $2,800. The ending debit
balance was $800.
b. Depreciation on buildings is estimated to be $7,300.
c. A one-year insurance policy was purchased for $2,400. Nine
months have passed since the purchase.
d. Accrued interest on notes payable amounted to $200.
e. The company received a $9,600 advance payment during the
year on services to be performed. By the end
of the year, one-third of the services had been performed.

16. f. Payroll for the five-day workweek, to be paid on Friday, is
$10,000. The last day of the period is a Tuesday.
g. Services totaling $920 had been performed but not yet billed
or recorded.
2. Below are the adjusted accounts of Sterling Company for the
month ended May 31, 20x5. Prepare Sterling’s
closing entries (omit explanations). 3 points each.
Accounts Payable $ 6,000 Office Equipment $75,000
Accounts Receivable 24,000 Prepaid Rent 11,000
Accumulated Depreciation- Salaries Expense 18,000
Office Equipment 30,000 Retained Earnings 60,000
Cash 12,000 Dividends 7,500
Commissions Revenue 54,000 Utilities Expense 1,000
Depreciation Expense-
Office Equipment 1,500
3. Feldman Company had a balance of $360,000 in Retained

17. Earnings on December 31, 2013. During 2014, the
company reported a net income of $48,000, and dividends of
$36,000 were paid. Prepare the company's
statement of retained earnings for the year ended December 31,
2014 in proper form. 17 points.
4. Using the following data, prepare a classified balance sheet
for Blanchard Company as of December 31, 20x5
in proper form. 25 points.
Cash $ 200 Accumulated Depreciation–
Building
$ 1,000

18. Investments in Short-Term
Government Securities
400 Franchise 1,800
Accounts Receivable 800 Accounts Payable 1,600
Inventory 3,000 Revenues Received in Advance 400
Prepaid Rent 100 Notes Payable (in two years) 4,000
Investment in Land Held
for future use
2,700 Common Stock 12,000
Land 2,000
Building 8,000
5. Use the information from the following single-step income
statement to prepare a multistep income statement
in proper form. 25 points.
Midway Industries
Income Statement
For the Year Ended December 31, 20x5

19. Revenues
Net sales $10,000
Interest income 300
Total revenues $10,300
Costs and expenses
Costs of goods sold $ 5,000
Selling expenses 3,000
General and administrative expenses 1,800
Interest expense 800
Total costs and expense
10,600
Net income (loss) ($ 300)
Last accessed 2/4/20151:42 PM PORTER'S FORCES GRADING
RUBRIC
DISTANCE LEARNING
GLOBAL STRATEGY AND POLICY
MAN4720-010 FALL 2014
Roll # FAMILY NAME, FIRST NAME Z NUMBER

20. PORTER INDUSTRY YOU SELECTED Commercial Airline 3
YOUR GROUP STRATEGIC AUDIT CASE Fiat Chrysler
Automobiles
Point value Earned Percent
A) Critical thinking score 6.50 6.08 93.50%
B) Technical skills score 5.50 4.87 88.50%
C) Written communication skills 3.00 2.63 87.50%
Less penalty if any 0.0% 0.00 Letter
YOUR GRADE 15.00 13.570 90.47% A-
5 4 3 2 1 0
Text concepts - grasp and integration X
Terminology application to above X
Industry knowledge and application X
Argument interpretation X
Total for segment A Value 6.50 Earned 6.08
5 4 3 2 1 0
Relevant varied company examples X
Research documentation X
Format and organization X
Total for segment B Value 5.50 Earned 4.87
5 4 3 2 1 0
In text citations X
Syntax & sentence structure (See keys) X
Works cited format & extent X
Submission and cover page Details On time Yes Z number Yes
Majors Yes
Safe Assign evaluation Reading 26% Green Yellow Orange Red
Other

21. Total for segment C Value 3.00 Earned 2.63
0%
Syntax error keys
1) Singular/plural-noun/pronoun agreement 8) Page numbers
omitted
2) Use of second person singular v. passive voice 9) Weak
separation between ideas
3) Subject/object and/or subject verb agreement 10) Excessive
copy and paste makes assessment difficult
4) Idiomatic expression difficulty 11) Homonyms e.g.
too/to/two, it's/its
5) Run-on and/or short-choppy sentence tendency 12) Sentences
starting with prepositions and/or ending with conjunctions
6) Improper use of the definite article 13) That, which, who
confusion
7) Verb tense confusion 14) Other (see details above)
GENERAL COMMENTS
Rating
scale
Rating
scale
GRADE
CODE
Administrative
use only
Nice work overall
Substitutes could include high speed rail e.g. EU, Japan, China,
California by 2018
Other complimentors included more regulators e.g. TSA, NTSB,

22. DOT etc. plus travel websites as distributors -
higher power of other - complimentors
Insufficient direct company examples e.g. proliferation of
mergers & acquisitions in rivalry
Fuel, largest operating cost. omitted in suppliers > commodity
pricing = higher supplier power
Italicizing key terms added value to your work
MAJOR
CODE
Penalty and reason if applicable
SEGMENT B) TECHNICAL SKILLS
Other notations
SEGMENT A) CRITICAL THINKING
SKILLS
Specific comments, errors and
omissions
Specific comments, errors and
omissions
SEGMENT C) WRITTEN
COMMUNICATION SKILLS
STUDENT MAJOR 1
STUDENT MAJOR 2
GRADE VALUE AND EARNED
Appropriately formatted citation omits the textbook = increased

23. SA match rate
Good skills but see keys 9, 10 & 12 Instruction do not require
intro - no penalty- no credit
Below expectationsRating
scale
Exceeds expectations Meets expectations
Exceeds expectations Meets expectations
Exceeds expectations Meets expectations Below expectations
Below expectations
Page 1 of 3
GLOBAL STRATEGY AND POLICY: MAN4720, SCHWARTZ,
DISTANCE LEARNING
COURSE INFORMATION HANDOUT NUMBER 5
GUIDELINES FOR THE PORTER’S INDUSTRY (TASK
ENVIRONMENT) ANALYSIS
1. PURPOSE:
required to ensure that the College of Business
satisfies the criteria set out by the State of Florida Public
University System, the Southern Association of
Colleges and Schools of Business (SACS) and the American

24. Association of Colleges and Schools of
Business (AACSB). Accreditation from these bodies ensures
state funding, student grant eligibility and
recognition of the FAU BBA degree by all accredited post-
graduate institutions. As the capstone course,
Global Strategy students are presumed to be about to graduate
and as such must demonstrate the
analytical and critical thinking skills necessary to survive in the
business world.
ce with the above, you are expected to integrate
your own thoughts with data and information
from independently researched outside sources.
2. GENERAL GUIDELINES
2.1 Due date
must submit a copy by e-mail as
well as submit it to Safe Assign on or before that date.
week before the due date.
2.2 Grading
ourse
value for the term.
schedule (appendix A of the syllabus) and late
submissions will be subject to the following penalties
f received three or four days past the due date

25. due date
and will receive a 0/15 = F grade.
d to SafeAssign will not be graded and
will receive a zero grade
grade components and comments.
criteria and values
2.3 Source notes
formatted, source note appendix.
site name, title and author where available.
other “wiki” or
similar open sites that are not peer reviewed and
are therefore academically unacceptable.
If you use someone’s ideas, words or
phrases, including the textbook you must list the sources on the
works cited page as well as in text
citations such as “quotation marks” and/or superscript
numbers(1) and/or (brackets).
3. THE ASSIGNMENT:
3.1 Individual Assignment
Porter’s paper is an individual written assignment and

26. you may not give or receive help on
this project!
to the penalties outlined in the
syllabus.
http://owl.english.purdue.edu/owl/section/2/
Kevin Concilio
Kevin Concilio
Kevin Concilio
Kevin Concilio
Kevin Concilio
Kevin Concilio
Page 2 of 3
3.2 Format
on which your analysis is based, the
date submitted, your name, Z number as well as the
course name and number and your instructor’s

27. name. For this assignment it is also imperative that you indicate
your major or majors on the cover
page. (Do not however include minors.)
o five pages, not including the
cover page and the endnotes.
as Times New Roman, Ariel, or Tahoma.
lower your grade.
sure to number the pages.
you select paragraphs be sure to underscore
or italicize key terminology.
introduction or conclusion. While not
penalized, including any, or all, of these will not provide any
credit.
-mail attachment. Never include
assignments in the body of as e-mail.
3.3 Analysis
to one of the
following industry categories but under no
circumstances are you permitted to do this exercise on the
industry of which the company in your
group case is a part.
INDUSTRY SOME INDUSTRY COMPANIES – EXAMPLES
ONLY
-cruise i
Norwegian cruise lines
-Bay, Priceline,

28. Angie’s list, Alibaba
Dell, Samsung
Nissan, Fiat-Chrysler, BMW
a title Rate each of the forces as
high, medium or low and explain the reason you think so. Do
not quantify the ratings.
ratings within these headings. Rely on the
terminology and concepts in the text bullet points, relevant to
your industry to justify each rating.
uild on the
evidence and eliminate unfounded
speculation and opinion. The textbook offers some useful
suggestions under industry information
starting at the bottom of page 377. Your work is expected to be
analytical, not merely descriptive.
se and get to the point. Do not pad or be so brief as
to make the work unintelligible.
the Porter’s forces blank grading sheet (course
information handout number 5.1) to guide you.
st reflect
an industry as a whole. Use a variety
of companies by way of example only. Focusing on a single
company is a significant error.
4. DEVELOPING YOUR PAPER
4.1 Michael Porter and the Task Environment

29. . In 1979 Michael Porter, then an assistant professor at
Harvard, proposed that we look at the external
environment from an industry as well as company (PEST or
STEEP) perspective. His Task Environment
is now routinely incorporated in strategic audits and has become
known as Porter’s Forces. Dr. Porter
initially proposed five forces: Power of Buyers (customers),
Power of Suppliers, Threat of New
Entrants, Threat of Substitute Products and Rivalry (existing
competitors). After publication, his thesis
was criticized for failing to take account of the numerous other
stakeholders and our textbook therefore
includes a sixth force, Relative Power of other Stakeholders. In
a 2011 paper published in Harvard
Business Review, Porter himself continues to object to the
inclusion of the sixth force, preferring to
characterize it as complimentors. He nevertheless provided us
with a method for assessing the impact of
these “other stakeholders” in the form of a Stakeholder
Priority Matrix (Fig 8-2, p233). Despite attempts
that have been made to inject numeric measurements, the
elegance of Porter’s method is found in the use
of High, Medium and Low to assess the strength of the various
forces. Using a grid, such as that in table
4-5 on page 121, multiplying a weight by a rating to provide a
weighted score proved to be prone to
considerable error. You will therefore use Porter’s High,
Medium and Low characterizations in your
Porte’s forces paper. The concept for each of the forces is well
explained in the textbook and you should
carefully read from the middle of page 104 to the top of page
108. I will therefore focus on just a few points
that often generate confusion and await your discussion board
comments and questions.

30. Page 3 of 3
4.2 Assessing the six forces
consumer. In the FCA sample case, for example,
the buyer is not the auto dealership but the person who buys the
car. Use whichever text bullet points
seem relevant.
of the Supplier: This sometimes becomes complex
since various classes of suppliers have very
different levels of power. In the case of the cruise industry for
example suppliers of food, alcohol, furniture,
cleaning supplies, entertainment etc., the companies within the
industry have significant choice and there is
fierce competition among suppliers for their business. On the
other hand when we consider fuel and
shipbuilders, the picture is quite different. You are therefore
free to explain this and to characterize the
power as Medium High or deal with the two categories of
suppliers separately.
NEW and you must be careful to distinguish
this from Rivalry which is EXISTING competitors. Here you
must look at the barriers to entry. High barriers
mean a low threat and vice versa. The text bullet points provide
a guide to assessment. In the auto industry
for example, Chinese cars therefore constitute a threat of new
entrants, whereas Japanese autos are
existing competitors.

31. performs the same task or provides an
equivalent or substitute, but not identical, service. For example,
the commercial airline industry defines its
product as transportation and high speed rail already constitutes
such a threat in Europe, and Japan and
the US may eventually follow suit.
company rather than an industry analysis. The
number of competing firms within a given industry is
particularly important since rivalry in a consolidated
industry tends to be higher than it is in one that is fragmented.
The consumer technology industry for
example. Young industries such as consumer technology may
however not present as clear a picture.
Rivalry tends to be high in newer sectors such as smart-phones
as well as in more consolidated segments
such as traditional computers
s is tricky
because stakeholder power tends to shift
rapidly and therefore requires some research, certain constants
may be identified. Government regulators,
for example, play a very large role in the airline and auto
industries and a lesser but still important one in
the cruise and consumer technology industries. Union influence
is another important variable.
Complimentors such as dealerships in the auto industry, airport
services in commercial airlines, travel
agents in the cruise industry and retailers in consumer
technology must also be considered.
5. HELP
-mail questions to you?
Absolutely: Since I generally answer my e-mail between 6:00

32. and 7:00 AM you may expect an answer
within 24 hours. However, I will not edit your entire paper or
significant segments of it for you by E-mail. If
the answers to your questions are long and/or complex, or if a
full review of your paper is needed I will ask
you to meet with me during office hours. Please see above re
last minute requests.
Certainly: provided that you are well prepared with specific
questions or a draft. Please Email your draft
and/or questions and include a daytime telephone number where
you may be reached. Allow 48 hours for
a call back and have your questions or draft outline ready.
Yes. If you find the instructions confusing or simply want
suggestions for improvement, I will be happy to
assist you. Straightforward questions will be answered in an e-
mail. The above procedure should be
followed for those questions requiring more complex answers.
Please ask for assistance well enough in advance for me to help
you. The likelihood of getting meaningful
help a day or two your work is slim to none. Lastly in addition
to this class I am teaching four traditional
classes this term so be sure to identify yourself with your name
and either the course number or as a

33. “distance learning student”.
CI05 Porter assignment instructions.docx
Kevin Concilio
Kevin Concilio
Kevin Concilio
Kevin Concilio
Last accessed 8/7/20153:03 PM PORTER'S FORCES
GRADING RUBRIC
GLOBAL STRATEGY AND POLICY
DISTANCE LEARNING MAN4720: SCHWARTZ
Roll # FAMILY NAME, FIRST NAME Z NUMBER
STUDENT MAJOR 1
STUDENT MAJOR 2
PORTER INDUSTRY YOU SELECTED
YOUR GROUP STRATEGIC AUDIT CASE
GRADE VALUE AND EARNED Point value Earned Percent
A) Critical thinking score 6.50 0.00 0.00%
B) Technical skills score 5.50 0.00 0.00%

34. C) Written communication skills 3.00 0.00 0.00%
Less penalty if any 0.0% 0.00 Letter
YOUR GRADE 15.00 0.00 0.00%
5 4 3 2 1 0
Text concepts - grasp and integration
Terminology application to above
Industry knowledge and application
Argument interpretation
Total for segment A Value 6.50 Earned 0.00
5 4 3 2 1 0
Relevant varied company examples
Research documentation
Format and organization
Total for segment B Value 5.50 Earned 0.00
5 4 3 2 1 0
In text citations
Syntax and sentence structure
Errors and omissions (see key below)
Submission and cover page Details On time Yes Z number Yes
Majors Yes
Safe Assign evaluation Reading % Green Yellow Orange Red
Other
Total for segment C Value 3.00 Earned 0.00
0%
Syntax error keys
1) Singular/plural-noun/pronoun agreement 8) Page numbers
omitted
2) Use of second person singular v. passive voice 9) Weak
separation between ideas

35. 3) Subject/object and/or subject verb agreement 10) Excessive
copy and paste makes assessment difficult
4) Idiomatic expression difficulty 11) Homonyms e.g.
too/to/two, it's/its
5) Run-on and/or short-choppy sentence tendency 12) Sentences
starting with prepositions and/or ending with conjunctions
6) Imporper use of the definite article 13) That, which, who
confusion
7) Verb tense confusion 14) Other (see details above)
Below expectationsRating
scale
Exceeds expectations Meets expectations
Exceeds expectations Meets expectations
Exceeds expectations Meets expectations Below expectations
Below expectations
GRADE
CODE
Administrative
use only
MAJOR
CODE
Penalty and reason if applicable
SEGMENT B) TECHNICAL SKILLS
Other notations
GENERAL COMMENTS

36. Rating
scale
Rating
scale
SEGMENT A) CRITICAL THINKING
SKILLS
Specific comments, errors and
omissions
Specific comments, errors and
omissions
SEGMENT C) WRITTEN
COMMUNICATION SKILLS