MGT 510 SEU Capability Development and Organizational Structure Research Paper
Description
Capability Development and Organizational Structure (105 points):
This week, our focus is on capability development and organizational structure as they apply to strategy implementation. For this critical thinking assignment, read Chapter 6, Organizational Structure and Management Systems: The Fundamentals of Strategy Implementation and evaluate a KSA company and their processes of strategy execution.
How does the strategy developed in the strategic planning processes translate into action for this company? Consider the role of capital expenditure budgets, operating plans, and performance management systems.
What role do resources, processes, motivation, play in strategy execution in this company and what stands in the way?
How does this companys structure and management system promote the effective implementation of the companys strategy?
What specific organizational capability should the company develop to support implementation?
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For CT 3 focusing on Industry Analysis
You needed to develop an essay with an introduction, body, and conclusion.
In the body, I needed to see that you responded to the four questions in the assignment:
1.Detail Porters Five Forces framework with a graphic representation, like Figure 3.3,
(p.65), and a written explanation in relation to the Five Forces for two industries.
2.Use the results from Porters Five Forces framework in question 1 to explain the
reasons why profitability is what it is in the two different industries expressed as high,
intermediate, or low.
3.Explain the structural features of that industry that generate either high or low
profitability
4.How are structural changes likely to impact competition and profitability in these
industries? Is this industry attractive for investment? Why or why not?
Your essay should be no more than 5 pages of content and contain an APA Cover Page
and Reference page. Use SEU academic writing standards and APA style. You need to support
your thoughts and opinions using concepts, principles, and theories from the textbook. And a
minimum of two scholarly, peer-reviewed journal articles. Grading is based on the rubric
noted.
NOTE: You will see yellow highlights in your paper, this means that you have responded
to the questions in the assignment, and I have noted that you have done so. If you see red type,
this is an error that needs to be corrected for next time or my making a statement for you to
consider. Green highlights indicate a grammar, spelling or APA error.
As a reminder: correct APA format and style includes:
-APA formatted Cover Page
-Double spacing
-APA Headings (no underling or all capital lettering)
-In-text citations
-All direct quotes need a page or paragraph number in the citation or at the end of the
quote.
-Reference page. (no all capital lettering, rewrite to upper and lower case)
-Journal names should be in italics for citations
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Please see my comments and feedback in and at the end of your paper.
Introduction
This study focuses on analyzing Porters analysis framework that can signify a firms stability
within the industry. Investors can gain sufficient knowledge about the firms positioning while
decision making for investment considering the threat levels. Industry Analysis of Taco Bell and
Walt Disney The assignment called for two Industries you are using two Companies. This
isnt the focus of Porters five forces can be explained with the help of Porters Five Forces
Model, which helps to analyze factors that affect the business operation.
Analysis of Taco Bell
Company Name: Taco Bell
Industry Type: Fast food restaurant
Supplier Power
High price for raw material
Cost of production
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Threat of entry
Substitute Competition
Capital Requirement
Product Differentiation
Access to distribution
Industry Rivalry
Intense Competition
Diverse competition
Intense advertisement
Availability of
substitutes
Competitive price
offerings
campaigns
Buyer Power
Product Differentiation
Switching cost of buyers
Price sensitivity
Figure 1 Structural Determinants of five forces of competition for Taco bell
1. Threat of New Entrant: High
IndentFast food industry is growing rapidly with a huge success which is attracting other firms to
enter the market. The threat of new entrants is continuously increasing, which is causing a
pressure on existing firms by eroding the profitability and reducing customers (Mhlanga, 2018).
Taco Bell is trying to overcome the problem by offering various ranges of high-quality products
at a reasonable price. Capital expenditure for Taco Bell in 2019 was $3,500,000, which is higher
than competitors like KFC. The firm captures 59% of the market share within the industry and is
penetrating in new geographical boundaries to expand the market.
2. Bargaining Power of Suppliers: Low
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IndentSuppliers have the tendency to charge high price from well-established companies for
supplying quality products. This also causes a threat for company as it increases the cost of
production (Matoshi & Veseli, 2017). However, Taco Bell overcomes the problem by maintaining a
healthy relation with the suppliers and providing timely payments. It can create competition
through bids to vendors.
3. Bargaining Power of Customers: Moderate Risk
IndentCustomers often try to bargain the price of the products with a view to reduce it. But this
depends on the number of potential customers a company is having and the switching cost of
buyers. Customers are price sensitive and, with the availability of vast options, they are likely to
switch within the industry. Since Taco Bell has a huge number of potential customers, it can
easily overcome this threat. They offer Mexican food through their restaurant that provides an
advantage within the industry.
4. Threat of New Substitute: High
IndentAvailability of substitute in the market increases the competition as buyers switch from
one firm to the other with a little change in price. In fast food industry, there are huge substitutes
which have increased the competition that every restaurant like Taco Bell has to face, like KFC,
McDonald, Burger King and Starbucks. This leads to contraction of profit availability within the
industry.
5. Rivalry among Existing Firms: High
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Fast-food industry faces an intense competition among its existing firms because of their
potentiality. The competitors of Taco Bell are McDonalds, Chipotle Mexican Grill, etc., which
gives tough competition to Taco Bell (Juutila, 2019). However, Taco Bell overcomes it by
providing various offers, discounts to its customers along with a soothing environment which
attracts customers. Intense rivalry exists as advertising campaigns, frequent price cutting, and
introduction of new products.
While you have put work into this analysis of Taco Bell unfortunately you needed an industry
like the Fast Food industry where Taco Bell would be a part of . Let me know if you dont
understand the assignments or not sure or ask your campus instructor OK.
ANALYSIS OF WALT DISNEY Remember no all capital lettering in APA, you only use upper
and lower case, please review
Company Name: Walt Disney
Industry Type: Media Entertainment Industry
Buyer Power
Availability and variety of suppliers
Bargaining power of the firm
Threat of entry
Industry Rivalry
Substitute Competition
Cost Advantage
Concentration of various firms
Less substitute availability
Legal barriers
Product differentiation
Price-to-performance ratio
Economies of scale
Exit barriers
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Buyer Power
Size and concentration of buyers in comparison to producers
Buyers switching cost
Product Differentiation
Figure 2: Structural Determinants of five forces of competition for Walt Disney
1. Competitive Rivalry: High
IndentThe external factors that give Disney strong competition are several firms in the market,
which gives a tough competition to Walt Disney. The aggressive companies that produce
animated films of high quality also give competition to Disneys Pixar Animation Studio. The
strategy of differentiation also contributes to rivalry, but only moderately. These factors state
Disney faces a strong competition from its rivals (Yang, 2019). Firms that cannot compete with
Walt Disney have to exit market because of high competition, financial strain and insolvency
position (Snyman & Gilliard, 2019).
2. Bargaining power of the customers: High
The factors like low switching cost, which makes it easy for the customers to switch from one
provider to the other, give the customers an upper hand. The sensitivity of price and the
availability of substitutes intensify the power of the customers in the business environment.
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Thus, for Disney, these factors give the consumers a high power and ability to choose from
different firms and products and thus increase their bargaining power.
3. Bargaining power of the supplier: Low
The effect of the bargaining power of suppliers is weak in Disney. This is because of the there is
a large availability and variety of suppliers in the market and the overall supply by them is also
large (Snyman & Gilliard, 2019). The number and variety of suppliers and their supplies have an
inverse effect on the company. These factors state the weakness of suppliers over Disney. But
this situation is always changing based on the trends of the environment in which an industry
operates (Barbosa, 2020).
4. Threat of substitute: Moderate
The availability of substitutes increases the threat to Disney. The price-to-performance ratio of
the substitutes and the availability of a variety of substitute pose a threat to Disney. However, the
threat provided by these factors is not strong, but moderate. Disney must use strategies to
enhance their quality and performance in order to attract the customers away from substitutes.
5.
Threat of New Entry in the market: Weak
Walt Disney must consider the possibility of new entries and their impact on the market. The
switching cost is low, thus it is easy for customers to switch from one to another. The cost of
capital required by a new entrant to enter the market and the cost of developing an image for
their brand is considerably high. Thus, these high costs act as a barrier to new entrant in the
market. Thus, Walt Disney faces a minor and weak threat from the entry of new firms in the
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market (Raj et al., 2020). However, the firm has faced a legal barriers because of unfair
compensation to its employees. They were accused of selling them at a higher margin by
exploiting their employees. Other legal issues include child labor, stereotypes, sexism and
plagiarism.
For this question I need to see you provide a graphic representation of Porters Five Forces
framework with a graphic representation, like Figure 3.3, (p.65), and a written explanation in
relation to the Five Forces for two industries that you have chosen to analyze. I needed to see a
better explanation of the Five Forces for 2 industries.
Here you needed to use the results from Porters Five Forces framework to explain the reasons
why profitability is what it is in the two different industries expressed as high, intermediate, or
low. I dont see that you have provided this information.
Here you needed to explain the structural features of industries that generated either high or low
profitability. . I dont see information for these questions.
Finally, I needed to see you discuss how these structural changes are likely to impact competition
and profitability for the two industries? Then, is this industry attractive for investment? Why or
why not? I dont see that you have provided this information.
I needed to see that you are responding to the questions in the assignment that you are being
graded on.
Conclusion
IndentPorters 5 Force are used to analyze the external environment of Taco bell and Walt
Disney. These tools help in evaluating the external opportunity and threat in the macroenvironment of the firms. It is seen that Disney faces threat and opportunity from technological
trends and socio-cultural trends. The company must optimize its position for long-term stability.
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Some external factors like mass media and entertainment industry provide competition that
Disney must look out for. Disney has a high threat in the industry that can hamper the profit level
in the future. While, Taco bell has an advantage in the fast-food restaurant industry because of its
Mexican food offering, strong market position and loyal customer relation. Thus, investors can
consider investing in Taco Bell to uncover stocks to assess its long-term value based on its
position within the industry.
As a reminder, I needed to see that you are responding to the questions in the assignment that
you are being graded on. Remember you are not just writing about the topic you are specifically
responding to the questions in the assignment. I need to be able to tell that you are in order to
grade you. Please use headings for that. Make sure your comments have depth and examples and
demonstrate what you learned from the content. Please review the comments and use them for
improvement of your next assignment. Let me know if you have questions. Dr. Cindy
References
Juutila, J. (2019). Global restaurant chains entering the Finnish market: Hypothetical Case: Chipotle
Mexican Grill.
Matoshi, R., & Veseli, B. (2017). Organic Food Perspective in Developing Countries: An Overview of
Polog Region and a Case Study in the Republic of Macedonia. European Journal of
Multidisciplinary Studies, 2(6), 9-16.
Mhlanga, O. (2018). The fast food industry in South Africa: the micro-environment and its
influence. African Journal of Hospitality, Tourism and Leisure.
Raj, R. K., Romanowski, C. J., Impagliazzo, J., Aly, S. G., Becker, B. A., Chen, J., … & Thota, N. (2020).
High performance computing education: Current challenges and future directions. Proceedings of
the Working Group Reports on Innovation and Technology in Computer Science Education, 5174.
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Snyman, J. H., & Gilliard, D. J. (2019). The streaming television industry: mature or still growing?. Journal
of marketing development and competitiveness, 13(4), 94-105.
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Explanation & Answer:
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Tags:
Organizational Structure
Performance Management Systems
Organizational Capability
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