Five Forces Analysis A well-known model that helps managers focus on the five most important competitive forces, or potential threats in the external environment is Michael Porter's five forces model. Porter identified five factors as major threats because they affect how much profit organizations competing within the same industry can expect to make. It is important for all managers to be able to analyze the effects of the forces when making decisions about entering, exiting, or staying in a given industry When you have completed this exercise, you should be able to understand the basic elements of Michael Porter's five forces model and perform a basic five forces analysis. Instructions: For each description, select the appropriate aspect of Porter's Five Forces, examples can be either high or low. 1. Sam - Sam Is thinking of opening a steak house. He has noticed that new restaurants always seem to be opening in his area. (Click to select) 2. Ten Medium Sized Companies. They banded together to order their raw materials from one supplier. This enables them to order in bulk and get a better price, (Click to select) 3. Time Warner Cable...The cable industry is made up of very few companies, ensuring that each makes a large profit Click to select) (Click to soloct) Threat of New Entrants to the Industry to sell its jewelry at much higher prices than its competitors because of the high quality and Power of Suppliers Power of Customers Level/Type of Rivalry