Porter's Five Forces

Porter's Five Forces is a great tool to analysis how the external envoirnoment in general to affect the attractiveness on a segment of industry that we are interested in. As we discuss in the class, the 5 forces are:

• Threat of new entrants
• Bargining power of suppliers
• Bargining power of buyers
• Threat from substitutes
• Intensity of rivalry

If we can have accurate information on the above 5 areas and we have our own strength that is strong enough to face those 5 external influences, we are at a very good position to run the business. However, I believe that the Porter's 5 forces just provides a general insight of the external envoironment. In order to the be success, we need to 'look in deep' of the external envoirnment. I would like to add on more area to the 5 forces in order to make it to a complete external envoironment analysis. They are (if applicable):

• Industry Life Cycle Analysis
• Econimic Condition Analysis
• Consumer Analysis
• Political/Legal Analysis
• Technology
• Global Trend/Condition Analysis

Here is an Porter's 5 Forces Analysis for OutBack Steak House(Full Service Restaurant (FSR)sector of Restaurant Industry).

• Threat of new entrants: LOW-Saturated and competitive FSR industry
• Bargaining power of suppliers: HIGH-No accepteable substitutes for good grade beef from other sources.
• Bargaining power of buyers: HIGH-Price sensitive buyers with low switching costs. Many choices of steak house in the FSR industry.
• Threat from substitutes: MODERATE-substitutes include cooking at home, fast food, other convenience foods and other type of cusines. Higher trend of eat out families now because working women in the market.
• Intensive of rivalry: VERY INTENSE-Numerous competitors in the market with similiar strength: Applebee's, TGI Fridays, Chill's). Saturated market of FSR industry sector.

Information Sources: Restaurant Industry Forecast 2006 & 2007.

MISSION STATEMENT OF MITCH

TASK

I am working for Commerce Bank as a branch supervisor. My duty is to assist my branch manager and assistant manager to supervise staff to perform their jobs accurately and ensure the daily branch operation running properly and smoothly.
In addition, I am working on my college degree on finance and investment major. My expected graduation date is summer 2008.

VISION & GOALS

As I move on my career path in retail banking field, finacial advisor (FA) position could earn more comparatively. Therefore I will move to sales side and I want to work for an international bank as a FA in 2008. My short term goal is to gain experience in US bank for 2 years then move back to my country Hong Kong to continue the same career in banking field there.
My personal goal is in my late 40s, I can own or partner with my friends to open restaurant in tourist area in Hong Kong.

VALUES

Since I have engaged many years in customer service industry, I know that consumer satisfaction is the top priority for a business to be success. Therefore whatever kind of business we are running, we have to continue improve the product quality and image of our products and company in order to match and even exceed consumer expectations. So I feel proud if I can help customers to solve their needs and always offer something which is more than their expectation.