Michael Porter Presented Four Ways in Which the Top Management

question 12

Essay

Michael Porter presented four ways in which the top management of an organization could select a business-level strategy for their organization. Discuss any two of these four ways of increasing the value of the organization's products and explain the advantages and disadvantages of the strategies that you choose.

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Definitions:

Net Cash

The net cash position resulting from deducting cash outflows from cash inflows.

Investing Activities

Financial transactions related to the purchase and sale of long-term assets and other investments, reflecting how a company allocates its resources to generate future growth and income.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.

Net Cash

The amount of cash available after accounting for cash inflows and outflows. It can indicate a company's liquidity position.