Английский язык. Практический курс для решения бизнес-задач
Шрифт:
– создание в ОАО «Лукойл» эффективных процедур подготовки и реализации программ в области промышленной безопасности, охраны труда и охраны окружающей среды, обеспечивающих постоянное выявление и решение наиболее важных задач промышленной и экологической безопасности, возникающих перед компанией;
– стабилизация и последующее сокращение количества, а также снижение токсичности выбросов, сбросов загрязняющих веществ и отходов при увеличении объемов производства за счет внедрения новых прогрессивных технологий, оборудования, материалов и повышения уровня автоматизации управления технологическими
– снижение техногенной нагрузки на окружающую среду от вновь вводимых объектов посредством улучшения качества подготовки предпроектной и проектной документации и проведения ее экологической экспертизы и экспертизы промышленной безопасности в ОАО «Лукойл»;
– повышение эффективности производственного контроля за соблюдением требований промышленной безопасности и экологического мониторинга на объектах компании на основе внедрения современных информационных технологий, методов технической диагностики и дистанционного зондирования (remote sensing).
Источник: www.lukoil.ru
Lesson 17
Industry Analysis
Read and translate the text and learn terms from the Essential Vocabulary
Porter’s Five Forces
The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, different industries can sustain different levels of profitability, partly because of industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.
Porter’s 5 Forces
I. Rivalry
In the traditional economic model, competition among rival firms drives profits to zero. But competition is not perfect and firms are not unsophisticated passive price takers. They strive for a competitive advantage over their rivals.
Economists measure rivalry by indicators of industry concentration. The Concentration Ratio (CR) is one such measure. The Bureau of Census periodically reports the CR for major Standard Industrial Classifications (SIC). The CR indicates the percent of market share held by the four largest firms. A high concentration ratio indicates that the industry is concentrated. With only a few firms holding a large market share, the competitive landscape is closer to a monopoly. A low concentration ratio indicates that the industry is characterized by many rivals, none of which has a significant market share. These fragmented markets are competitive.
If rivalry among firms in an industry is low, the industry is considered to be disciplined. This discipline may result from the industry’s history of competition, the role of a leading firm, or informal compliance with a generally understood code of conduct. Explicit collusion generally is illegal; in low-rivalry industries competitive moves must be constrained informally. However, a maverick firm seeking a competitive advantage can displace the otherwise disciplined market.
< image l:href="#"/>When a rival acts in a way that elicits a counter-response by other firms, rivalry intensifies. The intensity of competition is referred to as being cutthroat, intense, moderate, or weak, based on the firms’ aggressiveness in gaining an advantage.
A firm can choose from several competitive moves:
– Price competition.
– Improving product differentiation.
– Creatively using channels of distribution, such as vertical integration.
– Exploiting relationships with suppliers.
The intensity of rivalry is influenced by the following industry characteristics:
– A larger number of firms increases rivalry because more firms must compete for the same customers and resources. The rivalry intensifies if the firms have similar market share, leading to a struggle for market leadership.
– Slow market growth causes firms to fight for market share. In a growing market, firms are able to improve revenues simply because of the expanding market.
– High fixed costs result in an economy of scale that increases rivalry. When total costs are mostly fixed costs, the firm must produce near capacity to attain the lowest unit costs. Since the firm must sell this large quantity of product, high levels of production lead to a fight for market share and result in increased rivalry. High storage costs cause a producer to sell goods as soon as possible. If other producers are attempting to unload at the same time, competition for customers intensifies.
– Low switching costs increase rivalry. When a customer can freely switch from one product to another there is a greater struggle to capture customers.
– Low levels of product differentiation are associated with higher levels of rivalry. Brand identification, on the other hand, tends to constrain rivalry.
– Strategic stakes are high when a firm is losing market position or has potential for great gains. This intensifies rivalry.
– High exit barriers place a high cost on abandoning the product. High exit barriers cause a firm to remain in an industry, even when the venture is not profitable.
– When the plant and equipment required for manufacturing a product are highly specialized, these assets cannot easily be sold to other buyers in another industry.
– A diversity of rivals with different cultures, and philosophies makes an industry unstable. There is greater possibility for mavericks and for misjudging rival’s moves.
– A growing market and the potential for high profits induce new firms to enter a market and incumbent firms to increase production. A point is reached where the industry becomes crowded with competitors, and demand cannot support the new entrants and the resulting increased supply. A shakeout ensues, with intense competition, price wars, and company failures.