Patient Protection and Affordable Care Act - Free Essay Example

Sample details Pages: 3 Words: 786 Downloads: 5 Date added: 2019/02/20 Category Medicine Essay Level High school Tags: Medical Ethics Essay Did you like this example? Patient Protection and Affordable Care Act (Obamacare) are a set of health insurance and industry reforms that aim to expand access to health insurance and change the way the federal government pays doctors. The expansion of people with insurance can be attributed to three main provisions in the law – The expansion of Medicaid, the creation of insurance exchanges and the individual mandate (Kliff, 2017). While Obamacare relies on insurance companies and federal government, single payer healthcare relies on government (single payer) and covers the cost of essential healthcare for all residents through publicly funded taxes. The first provision under Obamacare is the expansion of Medicaid, a federal program that provides health care coverage to low income Americans. Before the expansion of Medicaid, residents of states such as Massachusetts and New York qualified for Medicaid based on income, household size, disability, family status and other factors. However, after the expansion of Medicaid in these states, residents can quality based on income level alone. If their income level is below 133% of the federal poverty level, they are eligible (HealthCare.gov). The second provision under Obamacare is the creation of health insurance marketplaces or health exchanges through which people can purchase and choose from a range of government – regulated and standardized health care plans. Before Obamacare, health insurance companies could deny coverage or charge higher prices for people with pre – existing conditions. Don’t waste time! Our writers will create an original "Patient Protection and Affordable Care Act" essay for you Create order However, under Obamacare, one’s health, medical history and gender can’t affect their premiums. Insurance companies are only allowed to account five factors while setting premiums which are Age, Location, Tobacco use, Individual vs family enrollment and Plan Category (HealthCare.gov). The third and the most controversial provision under Obamacare is the individual mandate that requires most Americans to purchase health insurance coverage. The individual mandate would provide health care to all sections of society, irrespective of their race, color and class, thus hugely benefitting the oppressed sections. This provision forces healthy people (who wouldn’t purchase insurance) to sign up in order to keep the premiums low. However, people who can’t find an affordable plan or have religious reasons for not buying health insurance are exempted from the individual mandate. One of the aims of Obamacare is to tether doctors’ payments, at least partially, to patient outcomes, rewarding doctors who practice better medicine with higher payments. Despite having various benefits, Obamacare has some evident loopholes in it. First, residents of states such as Alabama and Mississippi (without Medicaid expansion) with incomes below the federal poverty level are severely affected since they don’t qualify for either Medicaid or health insurance savings program (HealthCare.gov). Also, Insurers are fleeing the health insurance marketplaces because Medicaid Expansion have made it more expensive for insurers in non – expansive states since they have to cover for poor people who tend to be sicker than rich people. For instance, in Alabama, Blue Cross Blue Shield being the only insurer participating in the exchange is spending $1.20 for every $1 collected in premiums (Khazan, 2017). As a result, new taxes on medical device and pharmaceutical sales were created to pay for ACA. Moreover, if an individual remains uninsured, under the individual mandate provision, he/she is asked to pay penalties which rise every year if they ar e still uninsured (Kliff, 2017). While Obamacare implemented individual mandate provision to reduce the premiums by encouraging healthy people to join, covering people with pre – existing conditions have caused the premiums to rise exponentially. On the other hand, policies such as single payer healthcare requires the federal government (single payer) to cover the costs of essential healthcare for all residents with costs financed by publicly funded taxes. Single payer system aims to provide universal health care, thereby, reducing the number of uninsured people. In a single payer government run system, government would negotiate with doctors, hospitals and pharmacies, thus, reducing price per service and bringing health care costs down (Kurtzleben,2017). Such unified system would ensure high quality health care as the quality of care would have to be high enough to be acceptable to all residents. While single payer healthcare plan of free health care with no copays and deductibles seems cost effective, government would have to increase taxes to provide funding for everyone. This tax increase could exceed the money spend on copays, deductibles and health insurance plans, thus making it cost intensive. Moreover, a single payer plan doesn’t imply no copays or deductibles. For instance, Canada’s single payer system does not include coverage for dental and vision care alongside several prescription drugs. One of the largest single payer systems, England’s National Health Services charges a $12 copay for drugs prescribed outside hospital setting. Therefore, single payer doesn’t guarantee free health care (Kliff,2015).

Crime and Curfew Laws - 3514 Words

Perception of Selected Teenagers and their Parents Regarding the Juvenile curfew in Naga City, Camarines Sur (A Research Proposal) In partial fulfillment of the requirements in Research Methodology Table of Contents I. Rationale and Background of the Study†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦......... 1 I.1 Statement of the Problem†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 1 I.2 Null Hypothesis/Assumption†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.... 2 I.3 Theoretical and Conceptual Framework Theoretical†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2 I.4 Significance of the Study†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2 I.5 Scope and Delimitation of the Study†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 I.6 Definition of Terms†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.... 2 II. Review of Related Literature II.1.1 Legal Bases†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2.2.1 Local†¦show more content†¦John G. Bongat SECTION 1. – LEGISLATIVE FINDINGS AND DECLARATIONS. – Naga City is widely regarded as a peaceful community, with a government giving utmost importance to thepromotion of the well-being of children and families to ensure their collective safety and self-esteem. SECTION 2. – TITLE. – This Ordinance, as now revised, shall be known as the â€Å"NAGA CITY CURFEW ORDINANCE FOR MINORS†. SECTION 3. – DEFINITIONS. – The following words and phrases, whenever used in this ordinance, shall be construed as defined in this section: (a) â€Å"CURFEW HOURS† means the hours from 10:00 p.m. every night up to5:00 a.m. the next morning; (b) â€Å"MINOR† means any person under eighteen (18) years of age; (c) â€Å"PARENT† means a person who is a natural parent, adoptive parent, or step-parent of a minor. (d) â€Å"GUARDIAN† means: 1) A person who, under court order, is 2) the guardian of the person of a minor; 3) A public or private agency with whom a minor has been placed for custody by a court; 4) A person in charge of the custody or who is taking care of a minor, whether relative or not; or 5) A person at least eighteen (18) years of age and authorized by a parent or guardian to accompany a minor in a public place or to have the care and custody over him/her. (e)Show MoreRelatedAre Curfews Fair to Juveniles?840 Words   |  4 PagesAre Curfews Fair to Juveniles? Cities across the United States have imposed curfews on juveniles for many years. Teen curfew laws restrict the hours that juveniles may be on the streets or in public places at night (Sutphen and Ford). Some people consider curfews infringing on people’s constitutional rights. Curfews are hard to implement by law enforcement, and, in fact, take law enforcement away from more serious crimes. More crimes occur during daytime hours and more children are victimizedRead MoreEssay on Teenage Curfew Leads to Trouble Not Safety1600 Words   |  7 Pagesabout violent crimes and things that go bump in the night, but do we think that the problems can be solved by a magical curfew? Can parents really keep their teenagers out of trouble or does an imposed curfew only lead to resentment and chaos? Parents think back to when you were a teenager, did you have a curfew? If so, did you follow the rules or break them? Teenagers are no more likely to follow the rules today than they were in the past. It is not likely that creating a curfew for teenagers willRead MoreThe Laws On Curfews For Young Adults Under The Age Of 181220 Words   |  5 Pagesthe United States have enacted laws on curfews for young adults under the age of 18 years old. These laws are positioned to respond, in a positive manner, to the problems that arise when minors are out at all times of the night. These problems can cause an unsafe environment for not only the youth, but for the general public out late at night. Although curfews are not enacted in all major cities, this law is initiated to protect minors because it aids in reducing crime; assisting parents in settingRead MoreDo Youth Curfews Really Work?912 Words   |  4 PagesYouth Curfews Do youth curfews really work? With crime rate rising daily in many cities, more counties and cities are introducing new youth curfew laws to keep the youth out of the street after a certain time. The issue of adopting curfew laws has become more popular as parents are more concern about their kids’ safety during night time. Although parents and the cities have good intentions to cut the rate of crimes by proposing youth curfew laws, there are several unintended consequences that leadRead MoreEffectiveness Of Teen Curfews1544 Words   |  7 PagesEffectiveness of Teen Curfews Meridee Jones Cecil, a mother of two teenage boys, pronounced that she would undertake a new parenting tactic, and lay the curfew time in the teenager’s hands. Her son, Tom was a freshman in high school and often lingered around older friends who could drive. Because of this, Tom’s parents decided to teach him responsibility by having him appoint his own curfew. Meridee said, â€Å"It seemed to work like a charm. Tom even set some of his curfews for before midnight. He cameRead More Curfews: Whats the Point? Essay906 Words   |  4 PagesCurfews: Whats the Point? The 14th amendment of the United States Constitution states that any state shall not â€Å"deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws (Legal). However, many cities and states in the US currently enforce curfew laws that deny young teens under the age of 18 their right to be in public places or to drive after certain hours. These laws are punishing minors forRead MoreDo Curfews Effect Teens?951 Words   |  4 PagesLiz Wilfong ENG 101-036 April 28, 2015 Do Curfews Effect Teens? A lot of teenagers argue that obeying curfews really affects them because they get in troubles. Curfews do not guarantee that teenagers will fully stay out of trouble. Teen curfews do not reduce or take away from juvenile crime (â€Å"Teen Curfews Should Not Be Supported â€Å"). Some teens feel that when a parent sets a curfew, they don’t fully trust their kids all the way. Whether teenagers have a curfew or not, they can get in just as much troubleRead MoreTeen Curfews Should Not Be Banned1162 Words   |  5 Pagesfact that juvenile crime has been increasing in the last few years in larger cities, such as New York and Dallas. It has been a topic that is frequently brought up in town meetings and court cases dealing with town safety (Crowell 1). After the citizens demanded for something to be done about the violence and crimes that juveniles are exhibiting. They came to the solution of having teenager curfews that will hopefully decrease the violence and crime in larger ci ties. Teenager curfews have been foundRead MoreThe Violence Of The Urban Centers1060 Words   |  5 Pagesgathering. This occurrence prompted local authorities to pass an ordinance on Thursday that sets curfews as early as nine p.m. for people under age 18 (murphy, 2015). The question however remains if the youth are safe in our societies with or without curfews. The society has a significant role to play in the protection of the youth not only from joining a bad company and doing drugs but also from violence. Crime inevitably occurs during the night that during the day, it is in this light that the MayorRead MoreShould Teen Curfews Be Enforced?1055 Words   |  5 Pageshorses will once again be mice,† Said Fairy Godmother to Cinderella. Even Cinderella had a curfew. But the Fairy Godmother only wanted what was best for Cinderella, and she didn’t argue it. Giving teens an unreasonable curfew may make them think they need to sneak out of the house. But without a curfew, there is no guarantee that the teen will come home that night. So you`re left with the question, Should teen curfews be enforced? Once you think about it, if youngsters are getting into trouble, it makes

Leadership in Organizational Knowledge Creation

Question: Discuss about the Leadership in Organizational Knowledge Creation. Answer: Introduction According to Von Krogh (2012) leaders are individuals selected to equip, control and influence one or more individuals who have diverse abilities and skills. Leaders are required to ensure followers focus on the teams mission and objective causing the followers to enthusiastically, emotionally and physically concentrate on achieving the pertained mission and objective. Leaders tend to convey prophetic visions of the future which resonates the followers values and beliefs in a manners followers can understand and interpret the future action (DuBrin, 2015). Additionally, a leaders achievement needs to be attained using ethical means as he or she seeks greater good to his followers. Challenges faced by leaders The above discussion shows that leaders should work ethically so as to achieve the pertained mission and objective. Hence, this means that there are certain challenges that as a leader one tends to experience when trying to influence a group. Firstly, staying motivated tends to be a challenge. According to Walumbwa et al (2012) the greatest mistake any leader could make is hoping that someone else will motivate him or her. For any leader motivation must always be an inside job. In any group there can be formation of a positive environment and aid in motivation, but remaining motivates is something that as a leader could do for himself. Secondly, maintaining focus for a group leader tends to be a challenge. This is because there exists a lot of demands on a leaders attention and the existence of many leaders tends to allow other to determine theirs. Effective focus which arises and the step of choosing this tends to be the most crucial but maintaining focus tends to distract most people (Hogg et al, 2012). Thirdly, leaders face the difficult of balancing the needs of the group and the team members wants. The challenging issue here it trying to satisfy the two parties which is a key factor in the attainment of group objectives. Being respected and liked by group members tends to be vital for the success of a group, thus for most leaders getting to balance the two tends to be a milestone. For many leaders they tend to use the term being respected as an excuse of them not being liked. For most leaders in any group choosing one out of these two aspects tends to be difficult (Ubben et al, 2015). This is because being competent tends to gain you respect and being nice gets people to like you. Hence, the extra effort of choosing the best aspect is the challenge most leaders face. Challenges faced by groups Above, we have looked at some of the challenges leaders face in controlling groups. On the other hand, team members also tend to experience some difficulties during their stay in the group. First, there is the issue of coordination. Coordination is a representation of time and energy needed in group work so as to complete the assigned task (Herrmann Herrmann-Nehdi, 2015). This issue tends to be difficult to tackle because arranging of schedules, meetings, making decisions collectively and integration of group members to contribute consumes more time and at times there could be no co-operation by team members. Similar to leaders pertained to leading groups remaining motivated is also difficult for group members. Some of the factors that demotivate group members include free riding by some of the team members. Social loafing where members describe the tendency of a not applying more effort in their groups (Reeves Ventura, 2012). The development of conflict in any group may also reduce the levels of morale in any group. Intellectual cost also tends to be a challenge for most group members. For instance, the escalation in commitment in plans and strategies could lower the inefficiency of group members. Transparency illusion may also become a challenge because of the thought that attitudes and reasons tend to be the obvious reasons for their inefficiency (Komives Wagner, 2016). Common information effect to a group tends to be a problem because members tend to share and ignore the unique information which could be helpful in the completion of a particular task. The issue of conflict over opinions, strategies or positions greatly affects group members. This is because of the personal preference of a certain individual which affects the group in attainment of its set objectives and goals. The significance of leadership traits Leaders recognition of diversity of the followers and achieving unity tends to be a common value. For this to happen any leader should have effective leadership traits. In this case, we will be looking at how important it is to have a leader with leadership traits. Firstly, consider the case of an honest leader (Northouse, 2012). Most people will choose to follow any honest leader this is because of his unique ability in handling of mistakes. Honesty in any leader is vital because it tends to refine new ideas that failed compared to ideas that dishonest leaders who will fail to refine such ideas because of fear of failure. The trait of forward looking tends to be a vital trait for leaders. This is because as a leader you should be able to figure out where you are going from your actual standing point. Failing to have such a trait makes team member perceive that their leader is not forward looking and the leader is unwilling to share his vision with others. Leaders having such a trait tends to be vital because it shows that he or she is thinking and planning for the future plan used in task completion (Chiriac Granstrm, 2012). Competency trait in a leader is vital. For team member, they are always on the verge of following a competent leader. This doesnt insinuate that leaders need to be experts from each areas, but the ability to portray some form of competency is vital. Additionally, as a leader you need to understand that demonstration of competency isnt enough. Some people assume one is competent because of his leadership position, but demonstrating tends to be vital for other to accept that you are competent. Inspiring others as a leaders is also a critical trait. For most group member getting inspired by their leaders tends to keep their morale high (Leroy et al, 2015). In fact, there is a class that people follow an individual because he tends to inspire them even if the leader possesses no quality. Recommendation for leadership issues Our previous discussion on leadership perceives it as a process that enables followers to be innovative towards the achievement of a certain goal. But, also we have viewed that leaders tend to face serious challenges during their influence. Hence, we will be providing brief explanation on how such issues could be tackled. First, there was the issue of remaining motivated as a leaders. There exist many ways one could use so as to remain motivated. Knowing your purpose tends to be the first initiative this tends to develop a high sense of purpose leading to high motivation (Nahavandi, 2016). Maintaining of focus is also a critical issue which most leaders face. To effectively tackle this problem there is need of knowing whats significant and choosing it first. Distractions shouldnt be ignored but tabling then in a better way could effectively tackle the situation since not all task are equal. Balancing needs of the team members and organization is also hard for leaders. Therefore, leaders need to understand that balancing the two is vital (Ubben et al, 2015). Hence, there are instances where sacrifices will be needed and most people need to understand that. Thus, leaders need to understand that achieving results at the expense of your team may lead to resentment and high turnover. Therefore, balancing the two is the only best way. The issue of being respected and liked is critical for leaders. Hence, the best way that they could deal with this is by being competent which makes people respect them (DuBrin, 2015). Being nice also get people to like them taking an extra effort on this two might be critical. This paper has provided an in-depth discussion on the issue of leadership. This includes the challenges faced by leaders in a group, challenges faced by group members and the best ways leaders could tackle this situation. References Northouse, P. G. (2012).Leadership: Theory and practice. Sage. Walumbwa, F. O., Morrison, E. W., Christensen, A. L. (2012). Ethical leadership and group in-role performance: The mediating roles of group conscientiousness and group voice.The Leadership Quarterly,23(5), 953-964. Chiriac, E. H., Granstrm, K. (2012). Teachers leadership and students experience of group work.Teachers and Teaching,18(3), 345-363. Von Krogh, G., Nonaka, I., Rechsteiner, L. (2012). Leadership in organizational knowledge creation: a review and framework.Journal of Management Studies,49(1), 240-277. Hogg, M. A., Van Knippenberg, D., Rast, D. E. (2012). Intergroup leadership in organizations: Leading across group and organizational boundaries.Academy of Management Review,37(2), 232-255. Reeves, D. B., Ventura, S. (2012). i Leadership.AGENDA. DuBrin, A. J. (2015).Leadership: Research findings, practice, and skills. Nelson Education. Leroy, H., Anseel, F., Gardner, W. L., Sels, L. (2015). Authentic leadership, authentic followership, basic need satisfaction, and work role performance: A cross-level study.Journal of Management,41(6), 1677-1697. Herrmann, N., Herrmann-Nehdi, A. (2015).The Whole Brain Business Book: Unlocking the Power of Whole Brain Thinking in Organizations, Teams, and Individuals. McGraw Hill Professional. Ubben, G. C., Hughes, L. W., Norris, C. J. (2015).The principal: Creative leadership for excellence in schools. Pearson. Nahavandi, A. (2016).The Art and Science of Leadership -Global Edition. Pearson. Komives, S. R., Wagner, W. (Eds.). (2016).Leadership for a better world: Understanding the social change model of leadership development. John Wiley Sons.

Management Essay about Michael Porters Approaches

Introduction The concept of strategic management is increasingly being adopted by companies across the globe. As competition intensify, firms look for the most effective management strategies or models in order to improve their competitiveness.Advertising We will write a custom essay sample on Management Essay About Michael Porter’s Approaches specifically for you for only $16.05 $11/page Learn More Strategic management can be defined as â€Å"a goals-oriented management in which the mission and planned achievements of an organization are clearly set and all management processes are designed and monitored towards reaching the organization’s overall goals† (Joyce and Woods, 2001, p. 12). It is concerned with the planned and emergent initiatives that mangers take regarding resource allocation and improving the performance of the firm. Such initiatives entail formulating the firm’s mission, vision and objectives as well as formul ating policies that help in achieving the objectives. The performance of a firm is normally assessed using the balanced scorecard model and the results reflect the effectiveness of strategic management. In order to enhance the process of strategic management, Michael Porter developed several analysis tools which can be used by firms to evaluate their competitiveness in an industry. Such analyses enable firms to make informed decisions in regard to strategic management. This paper focuses on the contributions of Michael Porter in the filed of management. Michael Porter’s Contributions Michel Porter developed several analysis and management tools which include Porter’s five forces analysis, value chain analysis, competitive advantage theory, strategic group analysis and generic strategies (Joyce and Woods, 2001, p. 21). These tools are normally applied to specific management functions. The significance of these tools in the process of strategic management can be explaine d as follows.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Value Chain Analysis A value chain refers to the various activities that a firm perform in order to produce the end good or service in a given industry. At each stage â€Å"value is added to the product† (Sadler and Craig, 2003, p. 47). In order to deliver value to customers, companies must identify the point at which value is created or lost in their processes. Thus Michel Porter developed a model for analyzing the value chain in order to help in determining where value is created or lost within a firm. The costs and value associated with the activities of the firm determines whether or not products with the best value are produced by the company (Sadler and Craig, 2003, p. 50). The value chain framework gives managers the opportunity to identify the activities which generate the greatest value and those that create compe titive advantages. Similarly, the framework enables managers to identify the activities that create little value for the firm and its customers. Thus the framework enables managers to determine the activities that are important for competitiveness as well as the achievement of the firm’s overall strategy. The value chain is characterized by two main categories of activities namely, the primary and the secondary activities. Primary activities are those â€Å"directly concerned with the production or delivery of products or services† (Sadler and Craig, 2003, p. 53). They include transportation, production, sales and marketing services. Secondary activities on the other hand enhance the efficiency as well as effectiveness of primary processes. They include developing human resources, procurement, acquisition of infrastructure and improving production technology. The firm’s strategic goals must be aligned with its value chain (Sadler and Craig, 2003, p. 53). For exa mple, if the company’s goal is to achieve cost efficiency, then it will focus on activities that reduce costs. In the context of management, the value chain enables the management to evaluate the organization’s design. By identifying the activities that add value and those that do not, the management can make decisions on which activities to outsource or terminate and the ones to strengthen. Competitive Advantage Competitive advantages refer to the unique attributes that distinguish a company from the rest and improves its competitiveness within an industry. According to Porter, a firm should pursue policies aimed at producing high-quality products which are then sold at high prices (Dess, 2010, p. 67).Advertising We will write a custom essay sample on Management Essay About Michael Porter’s Approaches specifically for you for only $16.05 $11/page Learn More Competitive advantage is attained when the firm develops attributes which e nable it to outperform its rivals. Thus achieving competitive advantage implies the ability to realize high performance through attributes and resources. In the context of management, achieving competitive advantage involves successful implementation of strategic goals. Strategic management aimed at improving the competitive advantage of a firm should thus involve activities which enhance access to raw materials, talented personnel and new technologies (Dess, 2010, p. 68). Strategic Group Strategic group analysis is a strategic management concept used to group together firms with similar strategies or business models within an industry (Dess, 2010, p. 77). The number and characteristics of groups in a given industry is determined by the attributes used to categorize them. However, companies normally fall into two broad categories namely, direct and indirect competitors. Michael Porter â€Å"explained the concept of strategic group in terms of mobility barriers† (Dess, 2010, p . 77). The mobility barriers in this case represent the entry barriers which prevent potential competitors from entering the industry. The significance of strategic group analysis in management includes the following. It enables the management to identify who their rivals are, their strength within the industry and the strategy behind their competitiveness. Thus the management will be able to formulate policies that enable the firm to comfortably compete with its rivals (Dess, 2010, p. 78). Strategic group analysis also helps the management to determine the likelihood of firms moving from one strategic group to another. By knowing the characteristics of firms within a given strategic group, the management will be able to identify opportunities which they can take advantage of within the industry. Finally, it enables the firm to identify strategic problems that it faces. Consequently, it gives the management an opportunity to take timely precautionary measures in order to maintain or improve its competitiveness.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Generic Strategies The relative position occupied by a firm within an industry determines whether its profitability will be above or below the average profitability levels of the industry. Sustainable competitive advantage is the main determinant of a firm’s ability to realize above average profits in the long-run. The two main competitive advantages that a company can posses include, low cost and differentiation. When these two types of competitive advantages are aligned with activities for which the company intends to realize them; three generic strategies for achieving above average profitability are formed. The three generic strategies include â€Å"cost leadership, differentiation and focus strategy† (Sadler and Craig, 2003, p. 63). A firm pursuing a cost leadership strategy focuses on being the lowest cost producer in the industry it operates in. The sources of cost advantage are influenced by the industry’s structure. The sources include economies of scal e, access to superior production technology and access to raw materials. In order to achieve cost leadership a firm must explore all avenues of realizing cost advantages (Porter, 1996, pp. 61-78). Achieving cost leadership will enable the firm to realize profits which are higher than the industry average as long as its prices are comparable to the average prices in the industry. A firm pursing the differentiation strategy aims at being unique within its industry. The firm’s uniqueness is normally built along the dimensions that customers highly value such as superior product quality. In order to achieve this objective, the firm identifies one or more elements that majority of customers perceive as important (Porter, 1996, pp. 61-78). It then aims at meeting those needs by uniquely positioning itself. The company will be able to charge premium prices if it maintains its unique status in the industry. According to Porter, a firm pursuing the focus strategy usually identifies a particular segment of the market and concentrates in serving it. Thus the firm’s strategy will be tailored towards serving a particular market while excluding others. Porter’s Five Forces Analysis Porter developed a framework for analyzing the level of competition in an industry. His framework identifies five forces which determine the level of competition within an industry. The forces include â€Å"threat of new entrants, bargaining power of buyers, threat of substitute products, bargaining power of suppliers and threat of competitive rivalry† (Joyce and Woods, 2001, p. 78). Thus profitability within a given industry is determined by the strongest force. Profitability will be low if these forces are strong. It will however be relatively high if the forces are weak. Since these forces are external to the firm, they create both threats and opportunities to the firm. Thus analyzing the relative strength of these forces enables a firm to formulate policies that wi ll help it to take advantage of the opportunities associated with the forces and minimize the threats associated with them. This objective can be achieved as follows. First, the company should position itself â€Å"where the forces are weakest† (Porter, 2000, pp. 1-8). Second, the firm should always explore changes in the forces. The forces normally change over time and can create opportunities for the firm. Finally, the firm should explore the possibility of reshaping the forces in its favor (Porter, 2000, pp. 1-8). This includes efforts to reduce the threat of substitutes, neutralizing suppliers’ power and countering customer power. Case Study: Fortescure Metals Group Fortescure Metals Group (FMG) is a new entrant in the iron ore mining industry. The Porter’s Five Forces analysis will be used to analyze its competitiveness in the industry. Competitive Rivalry The intensity of competition is very high and this can be explained as follows. Even though there are a few competitors, the dominant firms control the greatest share of the market (78%). There are only three competitors in the industry. However, the two dominant firms, BHP Billiton and Rio Tinto have the largest market share. The industry growth rate is also slow as demand for iron ore dwindles. The fixed costs are very high since mining is labor intensive. This means that the fixed costs are high due to the large number of employees needed in the industry. Exit costs are very high due to the high sunk costs associated with mining. Since mining involves specialized equipment and infrastructure, exiting the industry will lead to a loss of the money used to acquire such equipment. The high threat of competitive rivalry is likely to limit FMG’s growth in the industry. Power of the Buyer The power of the buyer is very high due to the following reasons. The concentration of buyers relative to suppliers is very high. This means that there are few buyers as compared to suppliers. T he buyers’ switching costs are low since they can easily change their suppliers of iron ore at low costs. The suppliers’ (iron miners) products are not differentiated. The iron ore is normally sold to the buyers as a raw material hence its low level of differentiation. Finally, the threat of backward integration is high as most Chinese steel millers (main buyers) invest in direct mining of iron ore. The high power of the buyers means that iron ore miners are price takers. Thereat of Substitutes The threat of substitutes is low in the industry. 99% of the iron is used to manufacture steel. However, there is no substitute for iron in the manufacture of steel. The low threat of substitutes means that the incumbents can increase their profits by increasing the supply of iron ore since there are no substitutes (Sadler and Craig, 2003, p. 80). Threat of New Entrants The threat of new entrants in the iron ore mining industry is low due to the following reasons. There is low d ifferentiation of products since all miners produce the same raw iron ore. The capital requirement for joining the industry is very high. This is because mining is capital intensive and requires heavy investment in infrastructure and technology. The switching costs are very high since moving from one mining site or region to another will require significant investment in plant, equipment and infrastructure. The incumbents in the industry have a great control over the distribution channel by limiting access to their rail systems. The low threat of new entrants means that new companies can not easily join the industry (Sadler and Craig, 2003, p. 79). Thus the incumbents like FMG can maintain their market shares. Power of the Supplier The power of the suppliers is low since the iron ore miners obtain their supply of iron on their own. Thus iron miners such as FMG have the advantage of obtaining their iron ore at the lowest price possible by focusing on cost efficiency in their producti on. Conclusion Strategic management involves formulating the mission of an organization and formulating policies which facilitate resource allocation in order to realize the mission. This process involves designing and effectively executing the organization’s strategy (Sadler and Craig, 2003, p. 27). The essence of strategic management is to enhance the competitiveness of the organization. Michael Porter developed several tools that can be used by organizations to evaluate their competitiveness and to develop the best strategies as discussed above. Organizations should utilize the tools effectively to enhance their competitiveness. References Dess, G. 2010. Strategic Management. New York: McGraw-Hill. Joyce, P. and Woods, A. 2001. Strategic Management. New York: Kogan Page. Porter, M. 2000. The Five Competitive Forces that Shape Strategy. Harvard Business Review, 1(1), pp. 1-8. Porter, M. 1996. What is Strategy? Harvard Business Review, 1(1), pp.61-78. Sadler, P. and Craig, J . Strategic Management. New York: Kogan Page. This essay on Management Essay About Michael Porter’s Approaches was written and submitted by user Legend Sanford to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.