Michael Porter is a leading authority on competitive strategy and international competitiveness. He developed the influential Five Forces model for analyzing competition within an industry. The model examines five competitive forces - threat of new entry, power of suppliers, power of buyers, threat of substitutes, rivalry among existing competitors - that shape an industry's structure and determine the intensity of competition. Porter's work has provided frameworks for analyzing industries, developing competitive strategies, and understanding national and regional competitiveness. He continues to advise top companies and influence thinking in fields like healthcare through research at Harvard Business School.

1. The I/O Model TEAM A GROUP 1 FUAD LABARAN, ANGELA OBRINGER N’KAKOU

2. Input-Output Described • The output of an industry will appear as the input of other industries • This helps us to track the flow of money from one entity to the next

3. Input-Output Precisely Defined IO models describe both the transactions between the region and the rest of the world among activities within the region. These models produce a multiplier index that measures the total effect or impact of an increase in demand on employment or income. They can be used for predicting and forecasting the impacts of potential future performance of a regional economy & changes in inter-industry transactions.

4. Practical Uses Descriptive – can reveal knowledge about an area’s economy that would be impossible to get otherwise. Forecasting – estimate total impact of certain events or policy changes. Assessment – evaluate and assess specific goals, scenarios, etc. IO is used to identify the best approach!

5. How to use IO

6. Conclusion IO helps to evaluate, predict & assess goals and policies in an inter-connected system of sectors / industries in an economy Thank You!

7. External Environment Analysis TEAM A - GROUP 3 ALEX FRANCISQUINI, SUDEEP ADHIKARY, TATIANA LEVYKINA,JAMES BARLOW, DINAR PAYO

9. Assess current situation and external environment.

12. Environment as a source of resources.Organizations as open systems

13. Environmental uncertainty Environment as information is based on the idea of environmental uncertainty, (amount of change and complexity in organization’s environment). Environment as a source of resources based on idea that the more hostile environment becomes the more difficult is to obtain and control resources. External analysis of an organization can be classified as: Specific - customers, competitors, suppliers and other competitive variables, (analysed using Porter’s five forces). General - economic, demographic, sociocultural, political-legal and technological.

14. Environmental uncertainty Businesses operate in an external environment in which as well as competition from rivals, businesses have to take account of legal, political, social and economic influences.A SLEPT (Social, Legal, Economic, Political, Technological) analysis is often carried out by business planners which enables them to develop more informed strategies (i.e. long term plans).

15. Environmental uncertainty Social factorsRelate to change is society and social structures. Changes in the structure of the population, and in consumer lifestyles and behaviour affect buying patterns. Legal factorsRelate to changes in laws and regulations. Businesses must be careful to keep within the law and to anticipate ways in which changes in laws will affect the way they must behave. Economic factorsRelate to changes in the wider economy. A growing economy provides greater opportunities for businesses to make profits, so businesses welcome rising living standards. Political factorsRelate to ways in which changes in government and government policy can influence business. Technological factorsProvide opportunities for businesses to adopt new breakthroughs, innovations, and inventions to cut costs and develop new products.

16. Benefits and Challenges of Doing External Analysis

17. Look at specific data: statistics, trends, forecasts etc. Assess if changes are good / bad for your company. Focus groups. External information system provided for managers. Competitor intelligence. Study each external sector carefully. Doing an external analysis

18. An Organization’s External Environment Source: Strategic management in action, (Coulter M. 2010)

21. M.B.A. with high distinction in 1971 from the Harvard Business School, where he was a George F. Baker Scholar.

23. Application of competitive principles to social problems such as health care, the environment, and corporate responsibility.He is the Bishop William Lawrence University Professor, based at Harvard Business School. In 2001, HBS and Harvard University jointly created the institute for strategy and competitiveness dedicated to furthering Professor Porter’s work. Author of 18 books and over 125 articles.

25. Research Professor Porter’s core field is competitive strategy, which remains a major focus of his research. His book, Competitive Strategy: Techniques for Analyzing Industries and Competitors, is in its 63rd printing and has been translated into 19 languages. His second major strategy book, Competitive Advantage: Creating and Sustaining Superior Performance, was published in 1985 and is in its 38th printing. His book On Competition (2008) contains his most influential articles on strategy and competition

28. He received the Graham and Dodd Award of the Financial Analysts Federation in 1980.

30. Five Forces model Team A Group 5 Melisa Celebi, Pavel Kobychev, Hanna Merisalo, Mikko Vesikukka

31. Overview Article in Harvard Business Review “How Competitive Forces Shape Strategy”(1979) Book “Competitive Strategy: Techniques for Analyzing Industries and Competitors” (1980) Response to SWOT analysis which is “unrigorous and ad-hoc” External microeconomic environment analysis. supply and demand complementary products and substitutes the relationship between volume of production and cost of production market structures like monopoly, oligopoly or perfect competition. Measures intensity of competition and attractiveness Objective is to reduce the power of competitive forces to increase profitability

33. ROIC and industry attractiveness

34. Application Can be quantified and used as mathematic model Can help to compare attractiveness of industries Can be used to analyse future attractiveness of the industry when combined with a PESTLE Can be applied to particular companies (lines of business), market segments, industries or regions

35. Critics and development Bargaining power of Buyers: Buyers are concentrated on geographic area Buyers buy significant quantities (Sellers account) Buyers have full understanding of the industry patterns Porter on e-commerce

36. Reference http://rapidbi.com/created/porterfiveforces/ http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy http://www.cbe.csueastbay.edu/~alima/courses/3551/murdercleaners/fiveforcesporter.htm Porter, M. “Strategy and the Internet”, Harvard Business Review, 2001 http://hvass.nu/s2/artikler/teori/Misc/porter.pdf