1-Using a current macro event argue how it could be perceived to be an opportunity and a threat in shaping an organisation’s strategyIntroductionAim of your answerRational of writing about the answerStructure of answerMain bodymecro theory 2 issues to discuss2 exampleConclusionSummarise make sure to answer question.550 words2 references2-Concisely explain how a firm’s competitive strategy can be aligned to Porter’s Generic Competitive strategiesAim of your answerRational of writing about the answerStructure of answerMain bodyStrategic2 issues to discussTheory porter’s Generic competitive( 2 example)ConclusionSummarise make sure to answer question.550 words2 referencesPorter’s Generic Competitive Strategies (ways of competing)A firm’s relative position within its industry determines whether a firm’s profitability is above or below the industry average. The fundamentalbasis of above average profitability in the long run is sustainable competitive advantage. There are two basic types of competitive advantage afirm can possess: low cost or differentiation. The two basic types of competitive advantage combined with the scope of activities for which afirm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry: cost leadership,differentiation, and focus. The focus strategy has two variants, cost focus and differentiation focus.1. Cost LeadershipIn cost leadership, a firm sets out to become the low cost producer in its industry. The sources of cost advantage are varied and depend on thestructure of the industry. They may include the pursuit of economies of scale, proprietary technology, preferential access to raw materials andother factors. A low cost producer must find and exploit all sources of cost advantage. if a firm can achieve and sustain overall costleadership, then it will be an above average performer in its industry, provided it can command prices at or near the industry average.2. DifferentiationIn a differentiation strategy a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects oneor more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs. It is rewarded forits uniqueness with a premium price.3. FocusThe generic strategy of focus rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group ofsegments in the industry and tailors its strategy to serving them to the exclusion of others.The focus strategy has two variants.(a) In cost focus a firm seeks a cost advantage in its target segment, while in (b) differentiation focus a firm seeks differentiation in itstarget segment. Both variants of the focus strategy rest on differences between a focuser’s target segment and other segments in the industry.The target segments must either have buyers with unusual needs or else the production and delivery system that best serves the target segmentmust differ from that of other industry segments. Cost focus exploits differences in cost behaviour in some segments, while differentiationfocus exploits the special needs of buyers in certain segments.References• Porter, Michael E., “Competitive Advantage”. 1985, Ch. 1, pp 11-15. The Free Press. New York.
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