Porters Forces and Corporate Responsibility – Assignment Example
The paper "Porter’s Forces and Corporate Responsibility" is a wonderful example of a management assignment.
Porter’s five forces is a framework that can be applied to any industry or sector in order to identify the sources of competition in an industry or sector. The five forces include buyer power, supplier power, the threat of substitutes, threat of entry and competitive rivalry. This framework, when applied to an industry, for instance, a mobile service provider, will throw light on the competitive nature of the industry. The buyer and supplier power will have an influence on the profit potential on the different parts of the industry. The threat of entry and substitutes indicate the level of competitiveness and the competitive edge of the company or sector. These four forces impinge on the rivalry and indicate its competitiveness with the most immediate rivals.
Corporate responsibility indicates the regulations that are self- imposed and integrated into the business model. These are formulated in addition to the minimum obligations to stakeholders specified through regulation and corporate governance. The stakeholders that may be affected by these regulations (either favorably or adversely) include the contractual stakeholders and the community stakeholders. A company’s level of corporate responsibility can be understood (or measured) from its ethical stance. The ethical stance might be focused on short-term shareholder interests, long-term shareholder interests, and multiple stakeholder obligations, or the company can take the ethical stance of being a shaper of society.