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.

Grasp the concepts of writing style and tone suitable for business and marketing plans.

Know the various stakeholders and their critical perspectives on business and marketing plans.

Understand the factors influencing the format and detail level of a marketing plan.

Appreciate the role of strategic elements such as SWOT analysis in marketing plans.

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Definitions:

Payment Default

The failure to make a required payment on a loan or other debt obligation by the due date.

Loan Covenants

Agreements between a borrower and a lender that the borrower must comply with to remain in good standing.

Principal and Interest

The original amount of a loan (principal) combined with the cost of borrowing that money (interest).

Financial Covenants

Agreements between a borrower and lender setting specific financial ratios or milestones the borrower must maintain.