Forum Tasks Essay Example

strengths, address weaknesses, and avoid missteps. The five forces include threat of entry, supplier bargaining power, buyer bargaining power, availability of substitutes, and competitive rivalry.

According to Drucker (2004), Rio Tinto Group is a British Australian multinational firm that effectively utilizes the five Porter's forces of competition. Despite being established in 1873, it has become one of Australia's largest and financially successful firms. Similar to other top-performing companies worldwide, Rio Tinto expands through acquisitions and mergers. Currently, it is Australia's fourth largest entity and surpasses its competitor BHP Billiton as the leading firm in its industry. One share of Rio Tinto holds twice the value of a BHP Billiton share, resulting in a combined wealth of $350 billion (Sahaf, 2010) - five times larger than the total assets controlled by Australia's second largest firm, the national Australian bank. This achievement showcases Rio Tinto's ambitions in both local and foreign markets as it strives to understand and meet customer needs (Eden & Ackermann, 2000). The company also invests significantly in research and development (R&D) to identify better and innovative styles that outperform potential competitors in the industry. Its success surprises rivals who are amazed by its achievements due to offering excellent products at reasonable prices.

Using the National Australian bank as a case study, I will illustrate the concepts of company competence, core competence, and distinctive competence. As reported by Forbes.com, the National Australian bank holds the second largest position and demonstrates strong performance in Australia. To attain this level of success, a company must possess a comprehensive understanding of its surroundings and anticipate customer expectations. This necessitates extensive research and development to devise initiatives that effectively address

evolving customer needs (Sahaf, 2010).

A company's ability to effectively and efficiently deliver results and achieve set objectives and goals determines its competency. In the business world, numerous firms enter each year, but by the end of the year, approximately 42% of them exit, while only 2% manage to survive for a decade in the market (Pederson, 2006). These statistics emphasize the level of competency that a firm possesses. Competencies can vary from core competency to distinctive competence. Core competence refers to essential capabilities that provide a firm with a competitive advantage. When assessing a firm's core competence, it is crucial to acknowledge potential threats from other firms and concentrate on competences that can preserve the organization's competitive advantage (Hosskisson et al., 2008).

According to Hammond et al. (1998), distinctive competencies are the talents or collective experience of a firm's workforce that give it a competitive advantage over its rivals. The National Bank of Australia has outperformed many competitors in the finance industry (Thompson et al., 2004). The firm's distinctive competence in technology, management capabilities, and market strategies has positioned it above its competitors.

Broad differentiation strategy refers to a firm's presence in all market segments, where products are uniquely and excellently designed to create high awareness and accessibility. This strategy involves competency in research and development, resulting in the introduction of new and advanced designs into the market. These products can keep up with market trends. Prices of products from this strategy are usually higher than average, leading to an increase in demand and capacity expansion. In summary, this strategy focuses on providing unique products that add value to customers. For example, GE produces various electronic products

for both homes and industrial factories, as well as other office stationery items.

On the other hand, focused strategy targets specific segments of the market by providing high value that justifies premium prices. A notable example is the competition among different car manufacturers for the upscale market segment. The text suggests that a focus strategy centers on specific segments such as a particular group of people, product lines, or geographical area. Cadbury specializes in specific market segments primarily focused on food and beverages (Thompson et al., 2004).

In business, ethical dilemmas can arise, and how a firm responds to these issues can determine its success in the market. The ethical conduct of a business refers to the principles and practices it follows in its daily operations (Sahaf, 2010).Business ethics covers a wide range of issues influenced by the location and industry of a business. It is important for firms to fully embrace business ethics as it guides their actions (Hammond et al., 1998). Starbucks recognizes these driving forces and prioritizes giving back to society and protecting the environment (Eden & Ackermann, 2000). This ensures the well-being of current and future generations while respecting everyone's rights. Starbucks specifically focuses on assisting coffee farmers with production challenges and financial crises (Ireland et al., 2008).

Similarly, Coles Group offers various benefits to its employees such as promotions, skill development, lifestyle flexibility, discounts, and continuous development opportunities (Eden & Ackermann, 2000; Kotel, 2000). The Coles for You program aims to maximize employee benefits (Kotel, 2000), which is supported by positive experiences shared by employees on the company's website (Grant, 2005). Research suggests that once employed by Coles Group, individuals are treated like

family and receive assistance when needed (Grant, 2005).