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Portersfiveforces.edited.edited.docxRunning Head: BUSINESS AND FINANCE 1
BUSINESS AND FINANCE 2
Business and Finance.
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Date.
First part.
The report on the strategic elements she has implemented.
Being the junior-most manager in one of the Clorox Co. executive meetings, Linda Rendle advocated for the implementation of earth-friendly cleaners and perhaps felt that the move was not sufficiently enough for the company to realize its objectives (Terlep, 2020). Agreeably she worked for hand in hand with her bossed and perhaps pushed hard for the implementation of aspiration of broadening of Clorox green product line to include home care and laundry and avoidance of only sticking to the niche offering, which to her was not much productive and indeed after the broadening Clorox Green Works product line there was a vast sales realized in 2008.
Besides that, Linda Rendle stretched her ambitious nature of advocating for implementing new ways of combating flagging sales in the Clorox company, making the company witness and overwhelming and explosive demands for its products. It is worth knowing that Linda Rendle was initially singly focused on getting more customers to buy Clorox products, a mission in which she successfully implemented (Terlep, 2020). Additionally, Linda Rendle spearheaded the ramp up the production process for cleaning products to meet market demand for coronavirus pandemic related items such as disinfecting wipes and sprays.
Moreover, she worked hard to ensure that the company had implemented its efforts to increase cleaners' production and established a framework for expanding capacity in the coming months to meet the booming demand for its products. She also launched an initiative to create new products and innovative marketing strategies and aimed at cost-cutting via technology sustainability to realize its projected targets. Finally, she advocated for the halting production of some specialty offerings to simplify manufacturing some of its products (Terrell, 2020).
References
Terlep, S. (2020, September 27). Clorox’s new CEO is racing to keep wipes on store shelves. Retrieved from https://www.livemint.com/companies/people/clorox-s-new-ceo-is-racing-to-keep-wipes-on-store-shelves-11601187516492.html
Second part
1. What are the five forces that Porter explains? Give an example for each.
Porter's five forces can be expressed as a model used to identify and analyze five major competitive forces that positively shape many industries and organizations and perhaps help them evaluate their strengths and weaknesses. These forces can de frequently used to analyze industries’ strategies and their business-related structures. Porter’s five forces model can be used in any business or economy segment to understand better the existing degree of competition within a business organization to enhance long-term profitability (Jones, 2015). They can also be used as the measures of the intensity of competition, market or industry profitability as well as industry attractiveness. Porter's five forces include,
i. Competition in the industry.
This force is related to the number of potential competitors and their ability to disadvantage an industry. In situations where rivalry is low, business organizations gain greater chances and power to set terms that earn them high profit.
ii. Power of customers.
It is also good to know that customers have a large share to influence market prices by driving prices to lower levels. For example, a small client base gives each customer more power to negotiate for better deals (B2U, 2016).
iii. Powers of suppliers.
Customers have the ability to influence market prices by driving up the cost of inputs. An excellent example of such a scenario involves a company with few suppliers, which means however costly their inputs may be. Such industries will have no alternative but depend on their sole suppliers (Innovation Tactics, 2016).
iv. The threat of substitute products
Substitute products, services, or goods that can be utilized in place of a company's products pose a significant threat to the said company’s abilities so withstand competition. For example, companies that produce goods and services with no close substitutes have the ability to increase the prices of their products.
v. Potential of new entrants into the industry.
Organizational power is usually affected when there are new entrants in their markets. For example, when a new competitor effectively gets into the market of an already established industry, the position of such an established company's potential is weakened (B2U, 2016).
2. With the help of an example, explain why the rivalry is destructive to profitability if it gravitates to prices.
High-intensity competition and rivalry among industries create a lot of pressure on one another, which ends up limiting each other’s profit potential (Innovation Tactics, 2016). A good example is when the price competition is transferred directly to their clients, which perhaps gives the customers the most benefit.
References
B2U. (2016, August 3). Porter's Five Forces EXPLAINED with EXAMPLES | B2U. Retrieved from https://www.business-to-you.com/porters-five-forces/
Innovation Tactics. (2016). Strategy: Porter's Five Forces (with in-depth example Uber). Retrieved from https://innovationtactics.com/porter-five-forces/
Jones, S. (2015, May 5). A summary of Michael Porter’s “The Five Competitive Forces That Shape Strategy” | Branching Out. Retrieved from https://shannonjonesbranchingout.wordpress.com/2013/05/05/a-summary-of-the-five-competetive-forces-that-shape-strategy-michael-porter/
