Question 1

Distinct industries hold differing returns over a given period. In this context, there are some industries that perform better at short run periods but are unfortunate performers in long run operations. The value of any business is usually evaluated with the utilization of capital, developments, and incomes (Daidj, 2015). The industries that tend to better perform in the medium to the long run periods are energy, monetary, servicing and utility businesses (Daidj, 2015). The medium to the long run terms is those that range amid one and five years. This implies that the industries tend not to perform quite well in reference to profitability in relation to other sectors but based on formulated earnings they are the best performance in the long run. Media, business and buyer servicing industries are the ones that perform poorly in the medium to long run operating periods (Daidj, 2015). This is because more effort and investment is required in advertising.

Question 2

Today, some industries are associated with higher profits when compared to others. In that, this is the industries that have demonstrated increased revenues while constantly sustaining their values (Lussier, 2008). The industrial materials and energy sectors are among the industries associated with high profits given that in the recent the earning has increased from 2.50 percent up to 11 percent within a period of only five years (Daidj, 2015). However, these industries are the poor performers in regard to either medium, short or even the long run but tend to sustain and improve their earnings (Lussier, 2008). This is mainly because the industries normally share monopolistic markets.

Question 3

The industries that I would recommend are the servicing and business industries. In that, the industries are not only associated with higher profits in the short and long run period but they require less operating capital with lesser financial risks. In addition, the industries have higher chances of growth as compared to others (Daidj, 2015).

Topic 2

Question 1

Higher profits are acquired from the utilization of product distinctions or cost leading techniques. Corporations that normally perform higher when equated to others companies that are within the identical industry are those that are associated with differentiated products which tend to provide variety thus generating loyalty (Lussier, 2008). In addition, these are the companies that have established a better mode to be operative under lower cost while maximizing profits. In order for the companies that hold poor performance to do well, they are required to have authoritative leadership with well-designed long run approaches. For instance despite the fact that the brewing industry is characterized by high competition the companies offer a variety which leads to low expenses and higher profits (Lee & Carter, 2012). These corporations hold authoritative strategies in the quest of achieving high performing objectives.

Question 2

For corporations that operate within the same sector, some forces that would illustrate the distinctions in regard to performance, in the long run, are authoritative and oriented leadership, well-established strategies, diversification as well as technological resources (Lee & Carter, 2012). These factors are essential given that they provide objective missions that create competitive advantages. In addition, companies should always ensure that real needs are accomplished based on the partialities of their consumers which changes gradually.

Question 3

The industry that I recommend is the business servicing sector. For the purposes of creating a meaningful project, the most suitable company would be Amazon which is in the electronic commerce sector (Lee & Carter, 2012). The company is an American created company has ventured well in the international sector based on its provision of wide products range as well as quality (Lee & Carter, 2012). This has helped the company to acquire increased loyalty from its consumers given that it is focused on accomplishing actual needs that are based on separate consumer’s inclinations.

 

 

 

 

References

Daidj, N. (2015). Developing strategic business models and competitive advantage in the digital sector. Hershey Print.

Lee, K., & Carter, S. (2012). Global marketing management: Changes, new challenges, and strategies. Oxford: Oxford University Press.

Lussier, R. N. (2008). Management fundamentals: Concepts, applications, skill development. Mason, OH: South-Western/Cengage Learning.