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1 year ago

What is the relationship between a firm's industry environment and the firm's earning potential?

1 answer:

3 0

An organization is more likely to generate above-average returns the more it can positively impact the environment of its industry.

The general rules of competition that affect all companies that offer comparable goods and services. Industry environment is a concept that Harvard professor Michel E. Porter advanced into the forefront of strategic thinking and company planning. The core of his work, which outlines the five factors that affect industry competition, first appeared in the Harvard Business Review. Strategic managers can link distant issues to their influence on a firm's operating environment with the use of his well-defined analytical framework.

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