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Hello,
There is a running theme ( regarding APM questions)
Assess the impact of X on performance Management.
So I take June 2013 Q3 Stokeness
Using Porter’s five forces model, assess the impact of the external business environment on the performance management of StokenessI know what Porters’ five forces are. I know what Performance management is.
What exactly is the question asking me?
For each force, knowing how it applies in this question, I should advise the management of Stokeness on how to manage their business? Is that what the question is about? Or for each force, I should explain what the force means to Stokeness in particular and how it will impact them?So, you would need to consider the importance of each force – and they are forces to be resisted. If, for example, suppliers have strong bargaining power this will make it harder for you to make good profits.
So you are quite right in your suggested approach. Each force has to be considered in the light of Stokeness’s specific situation, assess the forces’ impacts and also what the company should do about them. So that the company fights each each force, performance measures have to be established to focus managers’ efforts on taking appropriate actions and the question asks you for one performance measure for each the five force areas.
So, continuing the theoretical example on supplier pressure (not necessarily related to Stokeness), if you concluded this was strong for Stokeness because it obtained a vital component form only one supplier a reasonable response would be to find alternative suppliers and to split orders. A performance measure could be number of suppliers used for each component.
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