How Is Porter's Five Forces Analysis Different from a SWOT

question 41

Essay

How is Porter's five forces analysis different from a SWOT analysis?

Identify the sources of market failure, including externalities, public goods, and imperfect information.

Discern the difference between efficiency and equity in economic systems.

Recognize the role and characteristics of public goods and the reasons behind government provision of such goods.

Understand the concept of market failure and its implications for resource allocation.

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Definitions:

Cash Inflows

Money or funds coming into a business or project, often as revenue, financing, or investment.

Cash Outflows

Money going out of a business, including expenses, investments, and distributions to shareholders.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Replacement Chain

A decision analysis tool used to choose between mutually exclusive projects with differing durations by comparing the equivalent annual annuity.