Illustrate the way in which market forces shape organisational responses using a range of examples?


1 Answers

Anonymous Profile
Anonymous answered

Market forces shape organisational responses through a very basic economic principle: Supply and demand.

A company or organization will always try and predict demand for its product or service, and ensure that demand is met by implementing a cost effective strategy.

Market forces, by definition, can have an effect on that demand - and as such, will have an affect on the supply chain and strategy used by an organization.
We could make a never ending list of market "eventualities" and examine how they impact supply and demand, but actually it's safer to just stick to the well-established concept of Porter's Five Forces:
  • likelihood of new entry,
  • powers of customers,
  • power of suppliers,
  • degree of rivalry
  • substitute threat
Each of these have a tangible and obvious impact on supply and demand, be creative and come up with examples for your assignment!
Otherwise, read me on this Blurtit answer: Http://

Answer Question