In Addition to the Five Forces Model of Industry Competition,Michael

question 37

Essay

In addition to the five forces model of industry competition,Michael Porter has developed a framework of so-called generic business strategies.Explain these generic strategies,describing their aims and application.

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Definitions:

MACRS Tables

Depreciation schedules provided by the Modified Accelerated Cost Recovery System used in the United States for determining the depreciation of assets for tax purposes.

Depreciation Expense

The portion of the cost of a fixed asset that is considered to be consumed or used up in each accounting period, reflecting the decrease in the asset's value over time.

Equipment

Refers to tangible assets used in the operation or production process of a business, such as machinery, tools, and vehicles.

Double-Declining-Balance

An accelerated method of depreciation where the asset's book value is decreased at double the rate of traditional straight-line depreciation.