MGT401 SEU Relationship of Social Responsibility & Competitive Advantage HW Question 1. Discuss the relationship between the social responsibility of a co

MGT401 SEU Relationship of Social Responsibility & Competitive Advantage HW Question 1.

Discuss the relationship between the social responsibility of a corporation and its competitive advantage. Enrich your answer by examples. (Max 700 words).

(Your answers should include outside references (other than the slides and textbook) using a proper referencing style (APA). Using references from SDL will be highly valued.

Question 2.

To prepare for this assignment, review Figure 4.3 entitled ‘forces driving industry competition’ from your textbook ( attached) and the text relative to Porter’s Five Forces of Competition framework. Consider the role of the following key forces of suppliers, substitutes, buyers, and potential entrants.

Select a Middle Eastern company of your choosing and assess the power of each of five forces on that firm:

How powerful are the buyers, suppliers, and substitutes? How formidable are the barriers to entry and how intense is the rivalry among existing firms?
Which of the forces has the biggest impact on the firm? Why? College of Administrative and Financial Sciences
Assignment 1
Deadline: 19/10/2019 @ 23:59
Course Name: Strategic Management
Student’s Name:
Course Code: MGT 401
Student’s ID Number:
Semester: I
CRN:
Academic Year: 1440/1441 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Learning outcomes:
1. Understand the basic concepts and terminology used in Strategic Management. (Lo 1.2)
2. Understand the Corporation Social Responsibility (Lo 1.4).
3. Understand issues related to strategic competitive advantage in organizations (Lo 2.2)
Assignment Questions:
(5 Marks)
Question 1. (2 marks)
Discuss the relationship between the social responsibility of a corporation and its competitive
advantage. Enrich your answer by examples. (Max 700 words).
(Your answers should include outside references (other than the slides and textbook) using a proper
referencing style (APA). Using references from SDL will be highly valued.
Question 2. (3 marks)
To prepare for this assignment, review Figure 4.3 entitled ‘forces driving industry
competition’ from your textbook (Figure 4.2- Ch4- Slide no 18) and the text relative to Porter’s
Five Forces of Competition framework. Consider the role of the following key forces of
suppliers, substitutes, buyers, and potential entrants.
Select a Middle Eastern company of your choosing and assess the power of each of five forces
on that firm:
a. How powerful are the buyers, suppliers, and substitutes? How formidable are the barriers
to entry and how intense is the rivalry among existing firms? (2 marks)
b. Which of the forces has the biggest impact on the firm? Why? (1 mark)
Answers:
Question 1.
Question 2.
a.
b.
110
PART 2 Scanning the Environment
PORTER’S APPROACH TO INDUSTRY ANALYSIS
Michael Porter, an authority on competitive strategy, contends that a corporation is most con-
cerned with the intensity of competition within its industry. The level of this intensity is deter-
mined by basic competitive forces, as depicted in Figure 4-3. “The collective strength of these
forces,” he contends, “determines the ultimate profit potential in the industry, where profit po-
tential is measured in terms of long-run return on invested capital.”47 In carefully scanning its
industry, a corporation must assess the importance to its success of each of six forces: threat
of new entrants, rivalry among existing firms, threat of substitute products or services, bar-
gaining power of buyers, bargaining power of suppliers, and relative power of other stakehold-
ers.48 The stronger each of these forces, the more limited companies are in their ability to raise
prices and earn greater profits. Although Porter mentions only five forces, a sixth—other
stakeholders—is added here to reflect the power that governments, local communities, and
other groups from the task environment wield over industry activities.
Using the model in Figure 3, a high force can be regarded as a threat because it is likely
to reduce profits. A low force, in contrast, can be viewed as an opportunity because it may al-
low the company to earn greater profits. In the short run, these forces act as constraints on a
company’s activities. In the long run, however, it may be possible for a company, through its
choice of strategy, to change the strength of one or more of the forces to the company’s advan-
tage. For example, Dell’s early use of the Internet to market its computers was an effective way
to negate the bargaining power of distributors in the PC industry.
A strategist can analyze any industry by rating each competitive force as high, medium,
or low in strength. For example, the global athletic shoe industry could be rated as follows:
FIGURE 4-3
Forces Driving
Industry
Competition
Potential
Entrants
Threat
of New
Entrants
Relative
Power
of Unions,
Governments,
Special
Interest
Groups, etc.
Other
Stakeholders
Industry
Competitors
Bargaining
Power
of Buyers
Buyers
Suppliers
Rivalry Among
Existing Firms
Bargaining
Power
of Suppliers
Threat of
Substitute
Products
or Services
Substitutes
…..
SOURCE: Reprinted with the permission of The Free Press, A Division of Simon & Schuster, from COMPETITIVE
ADVANTAGE: Techniques for Analyzing Industries and Competitors by Michael E. Porter. Copyright © 1980, 1988
by The Free Press. All rights reserved.

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