Managing strategy in the global marketplace - Assignment Example

Managing strategy in the global marketplace Grade (April 8th, Managing strategy in the global marketplaceWhat kinds of industries tend to be better performers in the medium to long term? Why? What kinds of industries tend to do poorly in the medium to long term? Why?Education & Training Services industries tend to perform poorly both in the short term and in the long term. The major reason that makes the Education & Training Services industries lag behind in their financial performance is the inability industry to commercialize research (Conference Board, 2014).

Taking the necessary steps to commercialize research is a fundamental milestone towards ensuring that the Education & Training Services industries apply this as a source of competitive advantage in the global market (Conference Board, 2014). Through innovation and adoption of new technologies, the Education & Training Services industries can gain a more solid ground for competing against other industries globally. On the other hand, the advertising industries are some f the most profitable industries (Friedman, 2013).

This is because, there have been various developments that have always favored the advertising industry, such as the technological innovations and rise of different media platforms, which increases the avenues for advertising and consequent revenue generation, while reducing the costs involved (Friedman, 2013). 2. Can you make the claim that some industries are inherently more profitable than others? Provide arguments and examples to justify your response.Some industries are just inherently more profitable than others.

This is because; there are some industries that have more avenues through which they can generate revenues and incomes than others (Bierman, 2011). For example, the advertising industries are highly favored by the access to multiple revenue generating avenues, as opposed to the Education & Training Services industries. Recently, it has become difficult for anyone to escape advertisement, considering that it is happening everywhere through different platforms such as the mainstream media, social media and the mobile telephony platforms (Bierman, 2011).

This has increased the avenues through which the advertising industry can generate income at reduced costs, thus increasing the industries profitability. 1. How is it that, even among the best performing industries, only some companies do well? How can some companies in poorly performing industries still do well?Even among the best performing industries, only some companies do well, because the performance of a company is highly dependent on the effectiveness of the management function, the suitability of the business strategies adopted, and the ability of the company to take advantage of the available opportunities through risk taking and innovation (Bierman, 2011).

For example, International Child Care Corporation is a company falling under the Education & Training Services industry that has performed poorly both in the short term and the long term, while Graham Holdings Co. is an industry that has managed to perform well both in the short term and the long term. 2. Generally speaking, for companies in the same industry, what factors would explain differences in company performance over the long term?For companies operating in the same industry, the major factors that would explain differences in the company performance over the long term is the management effectiveness, and innovation and risk-taking propensity (Bierman, 2011).

Thus, the companies with effective management, which are innovative and can also take risks, will end up performing better in the long term. ReferencesBierman, L. (November 7, 2011). 10 Most Profitable Industries. The Forbes Magazine. Retrieved April 9, 2014, from http://www.forbes.com/sites/sageworks/2011/07/11/10-most-profitable-industries/ Conference Board. (2014). How Canada Performs: A Report Card on Canada. Retrieved April 9, 2014, fromhttp://www.conferenceboard.ca/hcp/default.aspx Friedman, W.

(October 24, 2013). Media Industry To Outpace Stock Market, Cable Most Profitable. Media Daily News. Retrieved April 9, 2014, from http://www.mediapost.com/publications/article/211984/media-industry-to-outpace-stock-market-cable-most.html