4. Unattractive industries are more attractive than the attractive ones discuss?

An attractive industry is one which offers the potential for profitability. If a company uses Porters 5 forces industry analysis and concludes that the competitive structure of the industry is such that there is an opportunity for high profits, the company can elect to enter that industry or market. Or, if the company is already competing in that industry or market, it can use the competitive forces Porter created to determine its optimal position within the marketplace. An unattractive industry is one which does not offer the potential for profitability. If a company uses the five forces Porter created and conclude that the competitive forces in the industry are too strong or unfavorable, that company may choose not to enter that industry or market. Or, if the company is already competing in that industry or market, it can use Porter's 5 forces model to find the best possible strategic placement in it Porters Analysis Attractive Industry Threat of entrants is low Threat of substitute products is low Bargaining power of buyers is low/weak Bargaining power of suppliers is low/weak Intensity of rivalry among existing firms is low Porters Analysis Unattractive Industry? Threat of entrants is high Threat of substitute products is high Bargaining power of buyers is high/strong

 Bargaining power of suppliers is high/strong Intensity of rivalry among existing firms is high 2. When might an organization opt for a strategy that did not clearly fit its environment, and what are the risks involved? Strategic planning is the management task concerned with growth and future of a business enterprise. It ensures that the organization keeps moving in the right direction. It was fast changes in environment since 1950s that compelled organizations to approach the management task with strategic perspective, as the future was no more a measured extension of the past or the present. Instead of making extrapolated estimates about future, it was essential to endow the enterprise with certain fundamental competencies / distinctive strengths which could take care of eventualities resulting from unexpected environmental changes. Environmental changes which forced the firms to adopt a strategic perspective:

Fast changing technologies Proliferation of new products Faster commercialization of new product ideas and patents Socio political changes Emergence of global markets

Consequent to the changes in environment an enterprise had:

To be strategically alert To be future oriented To develop the competence for assimilating changes faster To grow big by generating sufficient resources and To gain expertise in technology, marketing and decision support systems

3. Organizational Ethics is the ethics of an organization, and it is how an organization ethically responds to an internal or external stimulus. Organizational ethics is interdependent with the organizational culture. Although, it is akin to both organizational behavior (OB) and business ethics on the micro and macro levels, organizational ethics is neither OB, nor is it solely business ethics (which includes corporate governance and corporate ethics). Organizational ethics express the values of an organization to its employees and/or other entities irrespective of governmental and/or regulatory laws.

Basic elements of an ethical organization There are at least four elements which exist in organizations that make ethical behavior conducive within an organization. The four elements necessary to quantify an organization's ethics are: 1) written code of ethics and standards; 2) ethics training to executives, managers, and employees; 3) availability for advice on ethical situations (i.e, advice lines or offices); and 4) systems for confidential reporting.[3] Good leaders strive to create a better and more ethical organization. Restoring an ethical climate in organization is critical, as it is a key component in solving the many other organizational development and ethical behavior issues facing the organization. 6.how can organization try to manage the risks that come with increased diversification? In diversification manager of organization need to three main points which is : 1. Market and competitors factor 2. Attention and knowledge factor 3. Efficiency factor 1.In market and competitors factor we need to answer: does the expansion and diversification improve the competitiveness of business or organization?

The factors of marker and competitors are: 1. Growth potential- market opportunity 2. Legitimation: access to resources 3. Differentiation: meet specific customers needs 4. Dependency and risks

2.The attention and knowledge factors are: 1. Management attention :understanding all challenges , market, industries and success factors 2. Exploration : innovation and learn new things 3. Experience /exploration : refining process over time, help by Repetition : high scale and low diversity 3. Efficiency factors: 1. overhead cost 2. economy of scale : limited range in large quantity 3. economies of scope and synergy( corporation): sharing resources and activity There are also some tests to apply before diversifying to avoided some risks Porters better off test (better to compete in corporation form or independent) Is it related to other business (can center add value to it) Is there any synergy with other businesses? (Existing business added value) 5. Market I believe the essential requirement for enter to the industry is to scanning the market environment , which is include e (1)direct market environment or (2) the external market environment. The direct environment includes customers, the company, and competitors. While external market environment: 1. Economic environment.

2. Technological environment. 3. Political and legal environment. 4. Cultural and social environment Scanning the market can helps us to understand the potential market and fast growing market which is very important for investment.it also help us to understand our potential customers and their needs and wants. The scanning the market help us to know the barriers to entry for each industry as well as understanding our competitors and understanding how we can differentiate and achieve competitive advantages. The estimating the resources of what we have are important elements for entering to the industry. **For economic environment, it is important to know that the The economies of the world are connected in a way that changes in one economy affect others. One reason for this is that the amount of international trade is increasing. it is affected by changes in and between economies.