Mgt599 Module 2 Session Long Project Essay
Course Number: MGT599
May 6, 2013
Porter’s Five Forces and Political, Economic, Sociocultural and Technology (PEST) analyses are key components used to complete an environmental analysis for the packaged food industry. This paper provides a brief summary of the components of each analysis and provides recommended sources to complete the required components within each system. Accessing federal and state government resources, journals, newspapers and industry financial records provide adequate resources to complete each analysis that will ultimately lead to an accurate environmental analysis.
Porter’s Five Forces & PEST
Porter’s Five Forces and Political, …show more content…
Bargaining Power of Buyers The flip side of powerful suppliers is powerful buyers. They can capture more value by forcing down prices, demanding better quality or more service (thereby driving up costs), and generally playing industry participants off against one another, all at the expense of industry profitability. Buyers are powerful if they have negotiating leverage relative to industry participants, especially if they are price sensitive, using their clout primarily to pressure price