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Sir,
In the PESTEL when analyzing buyer and suppliers do we need to take into account the power of the company in the scenario or the power of buyers and suppliers of the company in the scenario?Secondly, despite none of the PP question asking for a diagram (BCG, Ansoff, etc) but in case they ask for it, so is it ok to change the labelling and position and so on?
Thirdly, I have just gone about the notes and PP. 1.5 week exact is left. So should I go about the student accountant and/or the articles (which I do not feel comfortable given the time constraint) or just stick to what I have done so far?
Regards
Yes. It’s called 5 forces and force = power. That’s really the point of the model. If there is a monopoly supplier then that organisation is powerful and can dictate terms (like a high price of components) to the disadvantage of the company.
Yes the axes and labelling can be swapped around.
Read a few articles (say 1/day) to give yourself variety. You might be sick of seeing what you’ve studied already!
Sir, with regards to the first question I mean do the powers are seen as “powers of the company in scenario” or the “power of the buyers and sellers’ of the company in the scenario or “both”?
Regards
Power of buyers is the power buyers have over the company, but this is affected by the power the company has over the buyers.
So, if there are two powerful buyers, they would have great power over the company if the company was selling ordinary goods and buyers could switch easily. However, if the company were the only source of the goods, these massive customers would have little power over their monopoly supplier (the company).
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