hi thereI have 2 assignments1st is sn article then I will write the Questions Questions: Q.1) Analyse the forces which are driving industry competition using Porter Model for FITBIT case study. ( 10...

Running Head: GROUP ACTIVITIES 1
Group Activities
GROUP ACTIVITIES 2
Table of Contents
Activity 1: Airline Industry: Application of Porter Five Force Analysis ....................................... 3
Threat of New Entrants: Low: .................................................................................................... 3
Bargaining Power of Suppliers: High ......................................................................................... 3
Bargaining Power of Customers: High ....................................................................................... 3
Threat of Substitutes: Low .......................................................................................................... 4
Intensity of Rivalry Firms: High ................................................................................................. 4
Activity 2: SWOT Analysis of IBM ............................................................................................... 4
Activity 3: Answers ........................................................................................................................ 7
World most admired companies: ................................................................................................ 7
Answer 1: Evaluation and Control .................................................................................................. 7
Answer 2: Behavior Control, Input Control and Output Control ................................................... 8
Answer 3: EVA is an Improvement over ROI, ROE, or EPS ........................................................ 8
Answer 4: Transfer Price and Faith of Manager ............................................................................. 8
Answer 5: Appropriateness of Evaluation and Control Process to Emphasize Creativity ............. 9
References ..................................................................................................................................... 10
GROUP ACTIVITIES 3
Activity 1: Airline Industry: Application of Porter Five Force Analysis
In the global business environment, airline industry provides the services of air transports
for passengers and freight. It is one of the biggest industries and contributed a high part in world
economy. In order to evaluate the competitive environment of airline industry for Southwest
Airline, application of Porter five force analyses is as follows:
Threat of New Entrants: Low:
In the airline industry, new low cost carrier airline can enter to attract large number of
passengers from middle class segments. However, for the new players, there is a need to have
huge capital to operate in airline industry (Manuraj, 2016). A high infusion of capital is required
by the new players to manage sophisticated workforce to operate in airline industry and other
operations.
Bargaining Power of Suppliers: High
In the airline industry, suppliers have a high bargaining power due to a volatile and
unpredictable environment. Due to the external environment changes, flues, aircraft and labor are
affected at a high extent. Price of aviation fuel is not controlled by the companies and a subject
of global market, thus it affect the performance of southwest at a high extent (West & Dellana,
2016). However, Southwest purchase advanced fuel to save a significant amount (Manuraj,
2016).
Bargaining Power of Customers: High
Availability of several low cost airlines and similar services like southwest, power of
customers is high. The company approaches elite customers, and it has a pressure to run flight
even only half of the seats are booked (Manuraj, 2016). In order to provide outstanding customer
GROUP ACTIVITIES 4
services, it charges higher prices as per its business model, So the other airline firms takes
advantages of this and offer low price flights with similar services by approaching middle class
and upper segment (West & Dellana, 2016).
Threat of Substitutes: Low
In the industry, threat of substitute product is low because other available means of
transportation such as car, train, bus, ship cannot compete with airplane in terms of speed,
comfort and time (Liu & Zeng, 2007).
Intensity of Rivalry Firms: High
In the industry, southwest has a high competitive pressure due to availability of several
low cost airlines. Its major competitors are America Airline, US Airways group, Delta Airline,
Jet Blue Airways, United Continental...