Strategic Management XXXXXXXXXXDilpreet singh XXXXXXXXXX00201587T Table of Contents Introduction2 Summary of Porter’s Five Forces model2 Application of the model3 Usefulness and limitations4...

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Strategic Management Dilpreet singh 00201587T Table of Contents Introduction2 Summary of Porter’s Five Forces model2 Application of the model3 Usefulness and limitations4 Conclusion5 References6 Introduction The essay has been written to learn about Porter’s Five Forces Model and its different aspects. In order to learn the topic in a more detailed way, I have selected an organization named Qantas Airlines and applied the theory of Porter’s Five Forces. The topic is important for me as Porter’s Five Forces Model is a very important part of strategic management and it will help me a lot in my future aspects as I am studying this subject and wish to pursue on this later on. The essay consists of a brief summary of Porter’s Five Forces in the first part. The next part of the essay I have discussed the application of the model in the chosen organization. The last part of the essay is about the usefulness and limitations of Porter’s Five Forces Model. Summary of Porter’s Five Forces model Porter’s Five Forces Model is known to be an important business tool that is mostly used by different organizations in order to understand the competitive of the business environment (Carraher, (2018). This business tool also helps in identifying the potential profitability of a business strategy. There are five forces in the model, and they are a competitive rivalry, supplier power, buyer power, threat of substitution and threat of new entrants (Harding, 2017). These forces are generally measured in three parameters and those are low, medium high. The first force i.e. competitive rivalry generally helps in measuring the amount and strength of the competition in the market. Different aspects of competitors are also measured by this parameter. Supplier power means the availability of suppliers in the market. The more the supplier in the market the lesser the bargaining power of the suppliers. Buyer power likewise is the availability of different organization selling the same service or product in the market. More the competitors higher the bargaining power of the buyers (Vitasek, 2016). The threat of substitution refers to the possibility of customers to switch to a substitute product. If the availability of substitute products is more in the market higher the threat of substitution. The threat of new entry is known to be a condition where the feasibility of establishing a new business in the same industry is determined. The easier it is to enter into the market by establishing a new business in the same industry higher the threat of substitute. Application of the model Qantas Airlines is known to be an Australian organization in the aviation industry. The organization has been founded in the year 1920 and is headquartered in Mascot, Sydney, Australia (Qantas IN, 2019). Like most of the organizations, Qantas Airlines also uses Porter’s Five Forces Model to understand the competitiveness in the market. As it has already been discussed that Porter’s Five Forces is a business tool which has five forces and each force help in measuring the different aspects of competition in the market. Bargaining Power of Buyers: In Australia, there are many airline services hence the bargaining power of buyers, in this case, is high (Baxter, 2019). There are other organizations in Australia those who provide airline services at affordable rates hence the customers have different options to avail the same service. Bargaining Power of Suppliers: The bargaining power of suppliers in the aviation industry of Australia is low due to the availability of many suppliers. In this case, it has been seen that in the aviation industry there are many suppliers present in the Australian market which makes the bargaining power of the supplier low (Anton, 2015). Most of the supplier offer same services hence it is not difficult for the organization to switch to another supplier if one supplier asks for higher rates. The threat of Substitute: When it comes to the threat of substitute it is low. The airline is one of the fastest and safest modes of travel to date. Hence there is no one in competition to the airlines at least in Australia. In order to travel long distances and in limited time airplanes are considered as the only options. There are other options like railway services and waterway nut both takes a lot of time. Hence the threat of substitute for Qantas Airlines is low. The threat of New Entry: The threat of new entrants in the airline industry has always been on the lower side. The fact establishing an airline organization requires huge investment, large area and different government permissions. Setting up an airlines company is not so easy for anyone. These reasons make the threat of new entrants into the market low. Competitive Rivalry: There are many airlines company in Australia those who are providing the same services are affordable rates. Hence the competition in the Australian market is high. The main competitor of Qantas Airlines is Virgin Airlines which is known to be very popular and reputed airline services in Australia. The competitive scenario has been bad in the industry which has resulted in several losses by the company. Usefulness and limitations Like other business tool and strategies, Porter’s Five Forces also has some usefulness and limitations. Benefits Porter’s Five Forces gives valuable information tot eh organization that would help them in identifying the forces. Knowing the forces well will also help the organization in evaluating the profitability that can be earned within the industry by the organization. Limitations The tool has become old as it was designed when the market was believed to be static. There are different levels in the market hence defining an exact industry sometimes proves to be a drawback for the organization. Conclusion From the essay, I have learned a great deal on Porter’s Five Forces Model and its different aspects. The essay has made me understand the different forces of the model including its measuring parameters. I have also learned the application of the model by applying the model in Qantas Airlines. I have also come to know that the model and certain usefulness and certain limitations which must be kept in mind by organizations. References Anton, R. (2015). An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces, Diamond, PESTEL, and SWOT Analysis. Baxter, G. (2019). A Strategic Analysis of Cargolux Airlines International Position in the Global Air Cargo Supply Chain Using Porter’s Five Forces Model. Infrastructures, 4(1), 6. Carraher, S. M. (2018). An examination of an instrument to measure Porter’s Five Forces Model. In International Journal of Arts & Sciences Conference at Harvard University. Fly with one of the world’s most experienced airlines | Qantas IN. (2019). Retrieved from https://www.qantas.com/in/en.html Harding, S. (2017). MBA management models. Routledge. Vitasek, K. (2016). Strategic sourcing business models. Strategic Outsourcing: An International Journal, 9(2), 126-138. MGT302A/BIZ303_Assessment 2 Brief_ Case Study Report Page 1 of 6 ASSESSMENT BRIEF Subject Code and Title MGT302A/BIZ303: Strategic Management Assessment Assessment 2 - Case Study Report Individual/Group Individual Length 2000 words, +/- 10% Learning Outcomes a) Describe and evaluate the objectives, aims and the primary aspects of a strategic plan whilst taking into account the vision and mission of the organisation. b) Discuss and evaluate the processes and forces that influence the strategic decision-making process in relation to business strategy. c) Explain the significance of strategy as a means of identifying and realising opportunities for growth. d) Analyse the managerial, planning and procedural tasks associated with implementing and executing organisational strategies and identify the key risks associated with this process. e) Prepare and justify a strategic plan. f) Demonstrate an ability to think strategically about an organisation, its position in the marketplace and how it can gain a sustainable competitive advantage. Submission Due by 11:55pm AEST/AEDT Sunday of module 5 (week 9) Weighting 40% Total Marks 100 marks Context: You are a strategic analyst for a management consulting firm that specialises in the analysis of Australian organisations. Your task is to write a report based on a case study of an Australian corporation. You are to use the framework models of strategic management, in order to evaluate the environment the organisation operates within and its mission goals and strategic choices. Additionally, you will provide some recommendations that both support and critique the strategic direction the organisation has chosen to pursue. MGT302A/BIZ303_Assessment 2 Brief_ Case Study Report Page 2 of 6 Instructions: This assessment requires that you write a report on one of the following organisations: Telstra Over the past few years, Telstra, Australia’s largest provider of telecommunications services, has faced increasing competition from domestic and overseas providers. Rapid changes in technology, consumer behaviour, and the introduction of the NBN (National Broadband Network) have become a catalyst for the organisation to change its approach to both customer service and product innovation. Pressure to deliver returns to shareholders are ever-increasing; formulating and delivering a successful strategy is critical. More information on Telstra may be found at:  Annual report: https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf- e/Annual-Report-2017.PDF  General company information: https://www.telstra.com.au/aboutus  Strategy: https://www.telstra.com.au/aboutus/our-company/future/Ourcorporatestrategy Westpac The Australian banking environment is dominated by a small number of large banks. In the last few years, the banking industry has come under increasing pressure from the government and public, due to the high levels of profit that they report. This has culminated in a government investigation into the industry which is currently underway. Westpac has an innovative strategy which embraces digital technology and a dedicated focus on customer service. Westpac has also led the industry in community banking and sustainability initiatives. More information on Westpac may be found at:  Annual report: https://www.westpac.com.au/about-westpac/investor-centre/financial- information/annual-reports/  General company information: https://www.westpac.com.au/about-westpac/  Strategy: https://www.westpac.com.au/about-westpac/westpac-group/company- overview/our-strategy-vision/ Woolworths Group Woolworths Group is a large integrated provider of retail and leisure. Best known for their supermarket operations, they have faced strong competition over the last few years from the Australian incumbent, Coles, as well as new overseas entrants such as Aldi and Costco. Woolworths has recently had a change in chief executive