Two question

Each questions should be half the page each with citation for each. Please check grammar and sentence structural.
1.What industry sectors tend to be better performers? Why? Even among the best performing industry sectors, some companies don’t perform well. Why? On the contrary, some companies in poorly performing industries still do well. Why? For companies in the same industry sector, what factors could explain differences in company performance over the long term?

2. Select any company from the Standard & Poor’s 500. Select one or more activities in the company’s value chain that would be candidates for relocation to another country. Provide a brief justification and examine the challenges you see in coordinating the global value chain after the proposed value-chain activities of your chosen company are set up in the new country.

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A) It is important to appreciate the difference between industry performance and company performance, as different forces drive profitability at each level. Any industry that is not willing to change with the times is vulnerable to poor performance in the medium and long term. Companies operate in a global economy, and an industry’s survival in the medium to long term is based on its ability to change with the times and regroup according to changes the economy in their markets.

Whether industry performance is generally good or poor over the long term, the overall economy and, for some industries, commodity prices are factors. However, the real drivers of industry performance are strategic factors—Porter’s five forces (Porter, 2008)—four of which affect the degree of competition in an industry, and all five of which affect the overall attractiveness (i.e., profitability) of an industry. For traditionally high-performing industries like pharmaceuticals, the five forces are set very favorable conditions. The opposite is the case for low-performers, like airlines, utilities, and food producers.

The five forces are arranged with industry competition in the center surrounded by new entrants, suppliers, buyers, and threat of substitutes.

B) What Is an Industry?
An industry can also be viewed as a collection of firms offering goods or services that are close substitutes of each other. For example, an industry can be defined broadly (e.g., the healthcare industry, the transport industry) or more precisely (e.g., pharmaceuticals, medical diagnostics, automobiles, electric vehicles, SUVs.). How one circumscribes an industry depends on the kinds of analysis to be performed. In analyzing industry structure, it is generally better to define an industry as precisely as possible.
It is important to distinguish between the industry in which a company competes and the market it serves. For example, a company might compete in the aerospace industry but choose commercial aircraft or private jets as its served market. Or, a company may compete in the computer industry but choose to serve the software or hardware market. Defining the boundaries of the industry a company competes in is critical to delineate the size of the market, the drivers of demand, and potential competitors.

There are many industry classification systems. For example, the publications Fortune, Forbes, and Businessweek, have their own classification systems. The United States used to have an official Standard Industrial Classification (SIC) system, established in 1937 that designated industries using a four-digit SIC Code. In 1997, the United States Census Bureau replaced the SIC system with the North American Industry Classification System (NAICS), which places business establishments into specific industries. In performing an industry analysis, it is preferable to use the NAICS since all government statistics related to industries are now reported using this classification system (Jain, 2002; United States Census Bureau, 20018).
Industry Structure
Different industries show varied returns over time. Some perform well in the short term but not so well in the long term. For example, the infrastructure (such as utilities and energy) and financial services industries (such as banks, investment funds, and insurance) perform better in the middle to long term (Fidelity, n.d.).
This difference in performance is due to a number of factors including the kind of market the industry operates in. One approach to determining the kind of market is to view industry as collection of firms that directly compete with each other and to examine their markets according to the degree of competition between the firms. The markets could be (1) perfect competition, where a large number of companies compete against each other, (2) an oligopoly, where a small number of firms compete against each other, or (3) a monopolistic competition, where a single firm dominates the market.
The number and size distribution of firms in an industry defines its industry structure. “If all firms in an industry are small in size, relative to the size of the industry, it is a fragmented industry. If a small number of firms controls a large share of the industry’s output or sales, it is a consolidated industry. The type of competition in fragmented industries is generally very different from that in consolidated (or concentrated) industries” (Jain, 2002).
Industry structure also influences the profitability of companies in that industry. Some industries are inherently more attractive than others because of an underlying structure that positively affects the performance of firms in those industries. (Porter, 1979)
Industry concentration therefore is an important aspect of competition. The concentration ratio (CR) of an industry is used as an indicator of the relative size of firms in relation to the industry as a whole. It is designed to measure industry concentration, and by inference, the degree of market control. This helps analysts understand the nature of the industry operates in which the organization operates.
A commonly used concentration ratio is the four-firm concentration ratio (CR4). It is calculated by adding the total sales for the four largest firms in the selected industry, then dividing that sum by the total sales of the industry, and converting that result to a percentage.
While there is no distinct concentration ratio that separates one market structure from another, these values can be used as indicators of market structure, as shown in the table below:

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