Discussion Forum

Posted: August 25th, 2021

Module 8: Discussion Forum

Student’s Name

Institutional Affiliation

Module 8: Discussion Forum

Reflection on all Eight (8) Modules of Content

Prior to this course, I was under the impression that running a business was a matter of having capital and human resources. After studying the eight modules of the course, it seems that there were more aspects to be considered on this matter. Running a business is a complex undertaking whose success depends on multiple factors. To start with, industry and market dynamics, for instance, prices, wages, demand, and supply, influence the profitability of an enterprise. This is a common subject that has been emphasized in every module. Overall, the eight modules contain the fundamental basics that explain the success and failure of a business. 

Mod 1: Porter’s Five Forces Model

• Why did you choose this module to review and discuss?

According to Porter (2008), every industry is shaped by competitive forces. This explains why some markets have many buyers and sellers while others have fewer sellers but many buyers. To thrive in an industry, a firm must acquaint itself with its current competitive dynamics, especially with regard to prices. It is the role of business executives to understand these dynamics and make informed decisions (Ejimabo, 2015). As an aspiring business mogul, I found this module insightful and useful as a blueprint for understanding forces that could make or break a business.         

• What were two concepts that you found particularly relevant or insightful from the module and may continue to use?

From the module, the threat of entry and buyer power were the most relevant concepts which I found. Established businesses with huge market capitalizationenjoy economies of scale while new firms find it difficult to enter the market (Celli, 2013). With a huge market cap, meeting the buyer power is easy since a firm can sell products at relatively lower prices than competitors and still make a profit due to economies of scale. In the future, I will make an effort to utilize these concepts in order to realize the outlined benefits.       

• What were two concepts that you already knew or wished that you could have studied further?

Prior to studying this module, I already knew about both buyer and supplier powers. The latter relates to the number of suppliers and their size (Omsa, Abdullah, & Jamali, 2017). A huge number of suppliers offers diversity and this reduces incidences of supplier failure due to the competition. This is some of the information I had about the concept. As of now, I wish I studied more about the two concepts since they are cornerstones of business success.         

• How might you use this information in the future?

If I succeed in becoming an entrepreneur or a business executive, I will use the information from the module, especially about the five forces, to align company strategies and make informed decisions that will lead to success. 

• What predictions do you have regarding the future of business? Are there any trends that you can identify?

The future of business is largely uncertain due to the unprecedented changes in technology which continues to disrupt traditional business models. Today, it is apparent that most businesses prefer replacing the traditional models with digitalized models. This is a current trend which manifests in the form of e-commerce and is expected to continue in the future.

References

Celli, M. (2013). Determinants of economies of scale in large businesses—A survey on UE listed firms. American Journal of Industrial and Business Management, 03(03), 255-261. doi:10.4236/ajibm.2013.33031

Ejimabo, N. O. (2015). The influence of decision making in organizational leadership and management activities. Journal of Entrepreneurship & Organization Management, 4(138). Retrieved from https://www.omicsonline.org/open-access/the-influence-of-decision-making-in-organizational-leadership-and-management-activities-2169-026X-1000138.php?aid=54660

Omsa, S., Abdullah, I. H., & Jamali, H. (2017). Five competitive forces model and the implementation of Porter’s generic strategies to gain firm performances. Science Journal of Business and Management, 5(1). doi:10.31227/osf.io/9hbwt

Porter, M. (2008). The five competitive forces that shape strategy. Harvard Business Review, 24-41. Retrieved from http://www.ibbusinessandmanagement.com/uploads/1/1/7/5/11758934/porters_five_forces_analysis_and_strategy.pdf