Chapter 3, Problem 1ARQ

Explanation of Solution

Diagram:

The relationship between industry structures, competitive strategy, business processes, value chains and information systems are represented in a diagrammatic way.

Relationship between the processes:

Industry structure	To determine the industry profitability.
Competitive strategy	Sequence of events for achieving organization goals. It has a group tasks which are related to one another.
Value chains	The value in business process determines well-being and health of secure in long run. Value chain is activities where to create a value of customers.
Business processes	Business process is a series of events for achieving organization goals. It has a group tasks which are related to one another.
Information systems	Information system is a cluster of components that interact to deliver information.
Information	Information helps an MIS to exit an organization.

Five Forces in Industry structure:

• Bargaining power of customers
• Threat of substitutions
• Bargaining power of suppliers
• Threat of new entrants
• Rivalry

Bargaining power of customers:

It is described as market of output. The customer can buy the products from many suppliers, so the buyer has alternative option.

Threat of substitutions:

The first force is threat of substitution. It affects the customers to found different way of what you do. It uses different technology to achieve the same economic need.

Bargaining power of suppliers:

It is described as market of input. The person who makes the product will sell on the flour. There is no option to buy from others.

Threat of new entrants:

The people may affected by the entry to your market. If the new competitor enters into your market with more wealth, then they will quickly weaken your position...