Porter's Management Theory Essay Example | Topics and Well Written Essays - 2000 words

Porters Management Theory - Essay ExampleThe entertain, which has been published in nineteen languages and re-printed draw near sixty times, changed the way business leaders minds worked. Further, it remains a guide of choice for strategic managers on a global scale. Apart from being rich in lessons some why and how industries, regions, and nations succeed or fail, this book is of great value as the first serious attempt to develop a really overlord grand scheme of national economic cultivation processes since the early years of Postwar development economics, and mavin of the most original ways of thinking about development policy in years.This brings us to a discussion on the technicalities of the model proposed by Porter. Porters Five Forces model provides suggested points under each main heading. When taken into consideration individually, each of these gives rise to the development of a broad and sophisticated analysis of competitive position. This whitethorn further be u sed during the creation of a strategy, plans, or even where making investment decisions about a business or organization is concerned. These five competitive forces determine industry profitability and magnet apart from being responsible for shaping the prices that firms bath charge, the costs they have to bear, and the required investments to engage in industry take aim competition.We are concerned with the fact that Porters essentially ahistorical approach cannot provide a full account of either a nations competitive advantage and corporate strategies or the growth and development of industrial clusters. For this, let us first understand competitive advantage.Competitive advantage is the response of afirm to the air pressure need to organize and perform discrete activities. While these needs may not be forever spelt out, it is the responsibility of the planners and executers of policies to foresee such situations when catering for growth and development of the firm n versat ile levels. So does this mean that we are dealing with changes and issues only on an individual level and not a national levelThe basic explanation for this comes from the fact that any change on an individual level is effected by changes on a national level. Yet, Porters theory cannot accommodate strategies and competitiveness at such levels due to various constraints. The first of these emerges from the fact that people run businesses and economies - and everyone has his or her own unique style. These cannot be covered at length when talking which factors and resources will be utilized in which combination. Thus Porters theory does not provide an accurate account of the diversity and dynamism in the corporate and commercial surroundings that businesses and firms thrive in.Secondly, there are various activities to take into consideration. The activities performed when competing in a particular industry can be grouped into categories, as these activities can be divided broadly into primary activities and support activities. It has been illustrious that primary activities are those involved in the ongoing production, marketing, delivery, and servicing of the product.