Michael Porter Developed the Five Forces Model to Analyze Threats

question 36

Essay

Michael Porter developed the Five Forces model to analyze threats and opportunities within an industry.Describe the Five Forces and provide an example to illustrate their effect on a bakery opening in an area where several bakeries already exist.

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Definitions:

Decentralization

The transfer of control and decision-making from a centralized entity to multiple lower-level entities, promoting autonomy and local decision-making.

Globalization

The integration of economy, trade, and finance on an international scale.

Self-Managing Team

a group of workers who are given the autonomy to manage themselves and make decisions within their areas of operation without traditional management.

Decisions

The act or process of making choices or selecting an option or direction from a set of alternatives, often involving a degree of judgment or assessment.