Firm's ProfitabilityIn Porter's vie

Firm's Profitability
In Porter's view, both the industry and strategic groups determine a firm's profitability as follows:
I. Common Industry Characteristics
1. Industry-wide elements of structure that determine the strength of the five competitive forces and that apply equally to all firms; these traits include such factors as the rate of growth of industry demand, overall potential for product differentiation, structure of suppliers industries, aspects of technology, and so on, that set the overall context of competition for all firms in the industry.
II. Characteristics of strategic group
2. The height of mobility barriers protecting the firm's strategic group.
3. The bargaining power of the firm's strategic group with customers and suppliers.
4. The vulnerability of the firm's strategic group to substitute products.
5. The exposure of the firm's strategic group to rivalry from other groups.
III. Firm's position within its strategic group
6. The degree of competition within the strategic group.
7. The scale of the firm relative to others in its group.
8. Costs of entry into the group.
9. The ability of the firm to execute or implement its chosen strategy in an operational sense.
The task of analyzing a company's external situation is not a mechanical exercise in which analysts plug in data and definitive conclusions come out. There can be several appealing scenarios about how an industry will evolve and what future competitive conditions will be like.
Moreover, in practice, industry and competitive analysis is an incremental and ongoing process, the result of gradually accumulated knowledge and continuous rethinking and retesting.
Industries Change
Industry structure change, often in fundamental ways. Moreover, some industries go through evolutionary phases or stages development, growth, shakeout, maturity, saturation, and decline, the so-called industry/product life cycle. Industry conditions change because some forces are in motion that create incentives or pressures for change.
There are numerous types of driving forces which can exist to produce evolutionary change in an industry:
• Changes in the long-term industry growth rate
• Changes in buyer composition
• Product innovation
• Technological change
• Marketing innovation
• Entry or exit of major firms
• Diffusion or technical know-how
• Increasing globalization of the industry
• Changes in cost and efficiency
• Emerging buyer preference for a differentiated instead of commodity product (or for a more standardized product instead of strongly differentiated products)
• Regulatory influences and government policy changes
• Changing societal concerns, attitudes, and lifestyles
• Reduction in uncertainty and business risk
The driving forces work to push the current industry structure into a new structure and they usually create new kinds of competitive pressures - both of which have implications for business strategy.
Internal Organizational Analysis
In formulating a strategy, the strategic decision makers must also analyze conditions internal to the organization. An internal analysis leads to a realistic company profile, which is the determination of a firm's strategic competencies and weaknesses.
The development of a company profile in four-step process:
* In step 1, managers audit and examine key aspects of the business's operation, seeking to target key areas for further assessment.
* Step 2 has managers evaluating the firm's status on these factors by comparing their current condition with past abilities of the firm.
* In step 3, managers seek some comparative basis - linked to key industry or product/market conditions - against which to more accurately determine whether the company's condition on a particular factor represents a potential strength or weakness.
* The final step in internal analysis is to provide the results, or company profile, as input into the strategic management process.
This explains internal analysis as a process, but in practice, efforts to distinguish each step are seldom emphasized because the process is very interactive.
The Areas That Most Businesses Should Analyze
An internal organizational analysis evaluates all relevant factors in an organization in order to determine its strengths and weaknesses. Some of the areas that most businesses should analyze include the following:
1. Financial position. The financial position of a business plays a crucial role in determining what it can or cannot do in the future.
2. Product position. For a business to be successful, it must be acutely aware of its product position in the marketplace.
3. Marketing capability. Closely allied with an organization's product position is its marketing capabilities (i.e., its ability to deliver the right product at the right time at the right price).
4. Research and development capability. Every organization must be concerned about its ability to develop new products.
5. Organizational structure. Organizational structure can either help or hinder an organization in achieving its objectives.
6. Human resources. All the activities of an organization are significantly influenced by the quality and quantity of its human resources.
7. Condition of facilities and equipment. The condition of an organization's facilities and equipment can either enhance or hinder its competitiveness.
8. Past objectives and strategies. In assessing its internal environment, every business should attempt to explicitly describe its past objectives and strategies.
Internal analysis is difficult and challenging. The checklists provided above can be helpful in determining specific strengths and weaknesses in the functional areas of business.
Environmental Scanning
The second component of environmental analysis is to develop information about the environment. Information has two primary strategic role - in objective setting and in strategy formulation. As managers scan the environment, they interpret environmental influence in the light of their own perceptions, expectations, and values.
Environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization. The most widely accepted method for categorizing different forms of scanning divides into the following three types:
1. Irregular scanning systems: These consist largely of ad hoc environmental studies.
2. Regular Scanning systems: These systems revolve around a regular review of the environment or significant environmental components. This review is often made annually.
3. Continuous scanning systems: These systems constantly monitor components of the organizational environment.
Forecasting The Environment
Macroenvironmental and industry scanning are only marginally useful if all they do is reveal current conditions. To be truly meaningful, such analyses must forecast future trends and changes.
Environmental forecasting is a technique whereby managers attempt to predict the future characteristics of the organizational environment and hence make decisions today that will help the firm deal with the environment of tomorrow.
Forecasting involves the use of statistical and nonstatistical, or qualitative, techniques. Four techniques can be particularly helpful: time series analysis, judgmental forecasting, multiple scenarios, and the Delphi technique.

Hasil (Bahasa Indonesia) 1:

Profitabilitas perusahaanDalam pandangan Porter's, industri maupun kelompok strategis menentukan profitabilitas perusahaan sebagai berikut: I. karakteristik industri umum 1. industri-lebar elemen struktur yang menentukan kekuatan dari lima kekuatan kompetitif dan yang berlaku sama untuk semua perusahaan; Ciri-ciri ini meliputi faktor-faktor seperti tingkat pertumbuhan permintaan industri, potensi keseluruhan produk diferensiasi, struktur pemasok industri, aspek teknologi, dan seterusnya, yang menetapkan konteks keseluruhan kompetisi untuk semua perusahaan dalam industri. II. karakteristik kelompok strategis 2. tinggi mobilitas hambatan melindungi perusahaan strategis group. 3. daya tawar kelompok strategis perusahaan dengan pelanggan dan pemasok. 4. kerentanan perusahaan grup strategis untuk produk pengganti. 5. paparan perusahaan grup strategis untuk persaingan dari kelompok lain. III. perusahaan posisi dalam merek strategis 6. tingkat persaingan dalam kelompok strategis. 7. skala perusahaan relatif terhadap orang lain dalam grup usaha. 8. biaya masuk ke dalam kelompok. 9. kemampuan perusahaan untuk menjalankan atau menerapkan strategi pilihan dalam arti operasional. Tugas menganalisis situasi eksternal perusahaan bukanlah latihan mekanik di mana analis plug dalam data dan kesimpulan pasti keluar. Ada dapat beberapa skenario menarik tentang bagaimana sebuah industri akan berkembang dan apa yang akan masa depan kondisi kompetitif seperti. Moreover, in practice, industry and competitive analysis is an incremental and ongoing process, the result of gradually accumulated knowledge and continuous rethinking and retesting. Industries ChangeIndustry structure change, often in fundamental ways. Moreover, some industries go through evolutionary phases or stages development, growth, shakeout, maturity, saturation, and decline, the so-called industry/product life cycle. Industry conditions change because some forces are in motion that create incentives or pressures for change. There are numerous types of driving forces which can exist to produce evolutionary change in an industry: • Changes in the long-term industry growth rate • Changes in buyer composition • Product innovation • Technological change • Marketing innovation • Entry or exit of major firms • Diffusion or technical know-how • Increasing globalization of the industry • Changes in cost and efficiency • Emerging buyer preference for a differentiated instead of commodity product (or for a more standardized product instead of strongly differentiated products) • Regulatory influences and government policy changes • Changing societal concerns, attitudes, and lifestyles • Reduction in uncertainty and business risk The driving forces work to push the current industry structure into a new structure and they usually create new kinds of competitive pressures - both of which have implications for business strategy. Internal Organizational AnalysisIn formulating a strategy, the strategic decision makers must also analyze conditions internal to the organization. An internal analysis leads to a realistic company profile, which is the determination of a firm's strategic competencies and weaknesses. The development of a company profile in four-step process: * In step 1, managers audit and examine key aspects of the business's operation, seeking to target key areas for further assessment. * Step 2 has managers evaluating the firm's status on these factors by comparing their current condition with past abilities of the firm. * In step 3, managers seek some comparative basis - linked to key industry or product/market conditions - against which to more accurately determine whether the company's condition on a particular factor represents a potential strength or weakness. * The final step in internal analysis is to provide the results, or company profile, as input into the strategic management process. This explains internal analysis as a process, but in practice, efforts to distinguish each step are seldom emphasized because the process is very interactive. The Areas That Most Businesses Should AnalyzeAn internal organizational analysis evaluates all relevant factors in an organization in order to determine its strengths and weaknesses. Some of the areas that most businesses should analyze include the following: 1. Financial position. The financial position of a business plays a crucial role in determining what it can or cannot do in the future. 2. Product position. For a business to be successful, it must be acutely aware of its product position in the marketplace. 3. Marketing capability. Closely allied with an organization's product position is its marketing capabilities (i.e., its ability to deliver the right product at the right time at the right price). 4. Research and development capability. Every organization must be concerned about its ability to develop new products. 5. Organizational structure. Organizational structure can either help or hinder an organization in achieving its objectives. 6. Human resources. All the activities of an organization are significantly influenced by the quality and quantity of its human resources. 7. Condition of facilities and equipment. The condition of an organization's facilities and equipment can either enhance or hinder its competitiveness. 8. Past objectives and strategies. In assessing its internal environment, every business should attempt to explicitly describe its past objectives and strategies. Internal analysis is difficult and challenging. The checklists provided above can be helpful in determining specific strengths and weaknesses in the functional areas of business. Environmental ScanningThe second component of environmental analysis is to develop information about the environment. Information has two primary strategic role - in objective setting and in strategy formulation. As managers scan the environment, they interpret environmental influence in the light of their own perceptions, expectations, and values. Environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization. The most widely accepted method for categorizing different forms of scanning divides into the following three types: 1. Irregular scanning systems: These consist largely of ad hoc environmental studies. 2. Regular Scanning systems: These systems revolve around a regular review of the environment or significant environmental components. This review is often made annually. 3. Continuous scanning systems: These systems constantly monitor components of the organizational environment. Forecasting The EnvironmentMacroenvironmental and industry scanning are only marginally useful if all they do is reveal current conditions. To be truly meaningful, such analyses must forecast future trends and changes. Environmental forecasting is a technique whereby managers attempt to predict the future characteristics of the organizational environment and hence make decisions today that will help the firm deal with the environment of tomorrow. Peramalan melibatkan penggunaan statistik dan nonstatistical, atau kualitatif, teknik. Empat teknik dapat sangat membantu: waktu seri analisis, peramalan menghakimi, beberapa skenario, dan teknik Delphi.