Group 3 Dynamic Forces
-
Upload
robin-almario -
Category
Documents
-
view
216 -
download
0
Transcript of Group 3 Dynamic Forces
-
7/30/2019 Group 3 Dynamic Forces
1/32
Carlos, Grace
Cuarto, Lea Anna
Garcia, Elizabeth
Palma, Ivy Marie
Pena, Domingo
Sobremisana, Maria Theresa
07 November 2012 ASOG, Katipunan, Quezon City
-
7/30/2019 Group 3 Dynamic Forces
2/32
-
7/30/2019 Group 3 Dynamic Forces
3/32
Groups are composed of2 members: the one who will guess theword/phrase and the other is the one who will respond to the
guesser. The groups name will be called and must go in front.
They will be given strictly 2 minutes only to guess the word/phrase. The timer will start automatically as soon as theword/phrase is seen.
The one who will respond must only say NO, YES or
PWEDE.
When the group finally guesses the word, the timer will be stopped
and the recorder will note the groups time.
-
7/30/2019 Group 3 Dynamic Forces
4/32
Guide Questions
-
7/30/2019 Group 3 Dynamic Forces
5/32
- a market in which similar or closely related products
and/or services are sold to buyers.
The production side of business activity is referred asindustry. It is a business activity, which is related to the
raising, producing, processing or manufacturing of
products.
Any general business activity that can be isolated fromothers. An industry is often named after its principal
product, a very precise or generic business activity, or a
uniform classification code.
Industry is the production of an economic good or servicewithin an economy.
What is an Industry?
Sources: http://www.businessdictionary.com/definition/industry.html;
http://www.investorwords.com/2247/industry.html)
http://www.investorwords.com/2247/industry.htmlhttp://www.investorwords.com/2247/industry.html -
7/30/2019 Group 3 Dynamic Forces
6/32
1. Primary Industry
Primary industry is concerned with production of goods with the help of nature.
It is a nature-oriented industry, which requires very little human effort. E.g.
Agriculture, farming, forestry, fishing, horticulture, etc.
2. Genetic Industry
Genetic industries are engaged in re-production and multiplication of certain
spices of plants and animals with the object of sale. The main aim is to earn
profit from such sale. E.g. plant nurseries, cattle rearing, poultry, cattle
breeding, etc.
3. Extractive IndustryExtractive industry is concerned with extraction or drawing out goods from the
soil, air or water. Generally products of extractive industries come in raw form
and they are used by manufacturing and construction industries for producing
finished products. E.g. mining industry, coal mineral, oil industry, iron ore,
extraction of timber and rubber from forests, etc.
Classification/Types of Industry
-
7/30/2019 Group 3 Dynamic Forces
7/32
4. Manufacturing Industry
Manufacturing industries are engaged in transforming raw material into finished productwith the help of machines and manpower. The finished goods can be either consumer
goods or producer goods. E.g. textiles, chemicals, sugar industry, paper industry, etc.
5. Construction Industry
Construction industries take up the work of construction of buildings, bridges, roads,
dams, canals, etc. This industry is different from all other types of industry because in
case of other industries goods can be produced at one place and sold at another place.
But goods produced and sold by constructive industry are erected at one place.
6. Service Industry
In modern times service sector plays an important role in the development of the nationand therefore it is named as service industry. The main industries, which fall under this
category, include hotel industry, tourism industry, entertainment industry, etc.
source:http://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.html
Classification/Types of Industry
http://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.htmlhttp://kalyan-city.blogspot.com/2011/03/what-is-industry-meaning-classification.html -
7/30/2019 Group 3 Dynamic Forces
8/32
Type of Industry and Firm Size*
*www.dti.gov.ph
-
7/30/2019 Group 3 Dynamic Forces
9/32
*www.dti.gov.ph
Top 5 Industry Groups*
-
7/30/2019 Group 3 Dynamic Forces
10/32
The Video that Defies All
Known Sciences with 6 Million Hits and Likes
-
7/30/2019 Group 3 Dynamic Forces
11/32
Five factors that act together to determine the nature of
competition within an industry:
Threat of new entrants to a market
Bargaining power of suppliers
Bargaining power of customers (buyers)
Threat of substitute products
Degree of competitive rivalry
-
7/30/2019 Group 3 Dynamic Forces
12/32
5 Forces Model: An Analysis
source:http://www.quickmba.com/strategy/porter.shtml
http://www.quickmba.com/strategy/porter.shtmlhttp://www.quickmba.com/strategy/porter.shtmlhttp://www.quickmba.com/strategy/porter.shtml -
7/30/2019 Group 3 Dynamic Forces
13/32
Easy to Enter Difficult to Enter
Common technology Patented or proprietary know-
how
Access to distribution channels Well-established brands
Low capital requirements Restricted distribution channels
No need to have high capacity
and output
High capital requirements
Absence of strong brands and
customer loyalty
Need to achieve economies of
scale for acceptable unit costs
Issues to Consider in Entering an Industry
-
7/30/2019 Group 3 Dynamic Forces
14/32
Factor Note
Uniqueness of the input supplied If the resource is essential to the buying firm
and no close substitutes are available,
suppliers are in a powerful position.
Number and size of firms supplying the
resources
A few large suppliers can exert more power
over market prices that many smaller
suppliers each with a small market share.
Competition for the input from other
industries
If there is great competition, the supplier will
be in a stronger position.
Cost of switching to alternative sources A business may be locked in to using inputsfrom particular supplierse.g. if certain
components or raw materials are designed into
their production processes. To change the
supplier may mean changing a significant part
of production.
Factors that Determine Supplier Power
-
7/30/2019 Group 3 Dynamic Forces
15/32
Factor Note
Number of customers The smaller the number of customers, the
greater their power.
Their size of their orders The larger the volume, the greater the
bargaining power of customers.
Number of firms supplying the product The smaller the number of alternative
suppliers is the less opportunity customers
have for shopping around.
The threat of integrating backwards If customers pose a threat of integrating
backwards they will enjoy increased power.The cost of switching Customers that are tied into using a
suppliers products (e.g. key components)
are less likely to switch because there
would be costs involved.
Factors that Determine Customer Power
-
7/30/2019 Group 3 Dynamic Forces
16/32
- used to analyze where power lies in a business situation so that one
can take fair advantage of its strength, improve weakness, and avoidtaking wrong steps
Supplier power - power of suppliers to drive up the prices of inputs.
Buyer power - power of customers to drive down prices.
Competitive Rivalry- strength of competition in the industry
Threat of substitution - extent to which different products and services can be
used in place of another.
Threat of new entry - ease with which new competitors can enter the market
Example: Fast Food Industry
Source: http://www.valuebasedmanagement.net/methods_porter_five_forces.html
5 Forces Model: An Analysis
-
7/30/2019 Group 3 Dynamic Forces
17/32
Industry Supply Chain - the transportation and logistics service industry
consists of a range of businesses involved in the manufacturing,warehousing, selling, transportation, and distribution of goods. This
industry is vast, encompassing companies involved in the entire
supply chain process, from the purchasing of raw materials to the
use of decision making software to optimize revenue and profit.
A supply chain is a network of retailers, distributors, transporters,
storage facilities, and suppliers that participate in the production,
delivery, and sale of a product to the consumer. It is typically made
up of multiple companies who coordinate activities to set themselvesapart from the competition.
Industry Supply Chain
http://www.wisegeek.com/what-are-suppliers.htmhttp://www.wisegeek.com/what-are-suppliers.htmhttp://www.wisegeek.com/what-are-suppliers.htm -
7/30/2019 Group 3 Dynamic Forces
18/32
Supply Chain
Element Manufacturing Industry Service Industry
Focus Physical product Information/ RelationshipInputs Labor
Broad supplier base
Huge cost in procuring,
transporting, and
manipulating physicalmaterials
Labor
Smaller supplier base
Huge cost in manipulating
information and developing
relationships
Logistics Focused logistics
Ex. Better shipping rates,
maximize containers
Irrelevant
Ex. Upgrade of servers, install
software to speed the flow of
information
Finished Goods Physical product assembled,tested, and packaged, ready to
satisfy customer
Closed account/file with asatisfied customer
Optimization Improve speed of delivery
and reduce cost
Improve relationships and
information flow
-
7/30/2019 Group 3 Dynamic Forces
19/32
Supply Chain
Horizontal Supply Chain Integration- expansion of businessat the same stage of production within the supply chain, eitherwithin the same industry or a different one. It can be achieved
through internal expansion (increase variety of products) or
external expansion (merger, acquisition)
Vertical Supply Chain Integration - expansion of business atdifferent stages of production or distribution within the same
industry. It can either be forward integration (acquisition of
distributor) and backward integration (acquisition of supplier)
(Source: www.smallbusiness.chron.com/definition-horizontal-integration-supply-chain-34736.html)
-
7/30/2019 Group 3 Dynamic Forces
20/32
Process Innovation in Supply
Chain for Competitive Advantage
Benefits
-enhancement of the speed of operations and customer responsiveness
-reduction in the cost position of firms relative to competitors
-incorporation of product features
-increase in the flexibility of workplace
-
7/30/2019 Group 3 Dynamic Forces
21/32
A Value Chain is a chain of activities that a firm operatingin a specific industry performs in order to deliver
something valuable (product or service).
(1) Primary Activities - those that are directly concerned
with creating and delivering a product; and,
(2) Secondary/Support Activities - those that are not
directly involved in production, but may increaseeffectiveness or efficiency
-
7/30/2019 Group 3 Dynamic Forces
22/32
-
7/30/2019 Group 3 Dynamic Forces
23/32
Each activity that a business undertakes is directlylinked to achieving competitive advantage.
Analyzing the value chain can help recognize the
competitive strength of the business. It is way of
assessing the potential for adding value via cost
advantage or differentiation. It is also a way of
determining strategies and identifying which
activities are best undertaken by a business andwhich are best provided by others (outsourced).
-
7/30/2019 Group 3 Dynamic Forces
24/32
AMGEN focused on pushing for constant change
and innovation in the supply chain. The company
aims for a lean and real-time supply chain thatwill allow more efficient operations.
Surveillance Mechanism track dataNetwork Strategy cross-functional/globalInventory Management ERPBrand Protection Anti-tampering/counterfeit
-
7/30/2019 Group 3 Dynamic Forces
25/32
Jollibee Food Corporation
(bagged the Supply Chain Excellence Award in Asia-Pacific in 2009)
FSC - Food-Service-CleanlinessProcurement -Long -term deals with partners
Manufacturing - Commissary system; technologydependentMarketing - CSR activities; family values
-
7/30/2019 Group 3 Dynamic Forces
26/32
Supply chain management (SCM) is the process ofplanning, implementing, and controlling the operations ofthe supply chain with the purpose to satisfy customer
requirements as efficiently as possible. Supply chain
management spans all movement and storage of raw
materials, work-in-process inventory, and finished goods
from point-of-origin to point-of-consumption.
(source:http://www.jobs4logistics.com/content/supply-chain-explained-75.htm)
http://www.jobs4logistics.com/content/supply-chain-explained-75.htmhttp://www.jobs4logistics.com/content/supply-chain-explained-75.htmhttp://www.jobs4logistics.com/content/supply-chain-explained-75.htmhttp://www.jobs4logistics.com/content/supply-chain-explained-75.htmhttp://www.jobs4logistics.com/content/supply-chain-explained-75.htmhttp://www.jobs4logistics.com/content/supply-chain-explained-75.htmhttp://www.jobs4logistics.com/content/supply-chain-explained-75.htmhttp://www.jobs4logistics.com/content/supply-chain-explained-75.htm -
7/30/2019 Group 3 Dynamic Forces
27/32
The main objectives of supply chain management include:
1. Satisfying the end-customers;
2. Devising/implementing strategies to capture and
retain end-customer business;
3. Managing the chain effectively and efficiently;
4. Determines the scope and span of operations; vertical integration;
make or buy decisions; and
5. Long term relationships with suppliers and customers
-
7/30/2019 Group 3 Dynamic Forces
28/32
Three Levels of Activities:
Strategic: This level, company management will be looking to high level
strategic decisions concerning the whole organization, such as the size
and location of manufacturing sites, partnerships with suppliers, products
to be manufactured and sales markets.
Tactical: Tactical decisions focus on adopting measures that will produce
cost benefits such as using industry best practices, developing a
purchasing strategy with favored suppliers, working with logistics
companies to develop cost effect transportation and developing
warehouse strategies to reduce the cost of storing inventory.
Operational: Decisions at this level are made each day in businesses thataffect how the products move along the supply chain. Operational
decisions involve making schedule changes to production, purchasing
agreements with suppliers, taking orders from customers and moving
products in the warehouse.
-
7/30/2019 Group 3 Dynamic Forces
29/32
Elements of Supply Chain:
Customer
PlanningPurchasingInventory
ProductionTransportation
-
7/30/2019 Group 3 Dynamic Forces
30/32
Supply Chain Management TechnologyThe wide adoption of Internet technologies (IT), all businesses can take
advantage of Web-based software and Internet communications. Instant
communication between vendors and customers allows for timely updates
of information, which is key in management of the supply chain.
Two main types of SCM software:
1. planning applications - use advanced algorithms to determine the best
way to fill an order.
2. execution applications - track the physical status of goods, the
management of materials, and financial information involving allparties.
-
7/30/2019 Group 3 Dynamic Forces
31/32
Supply Chain Management Technology
Some SCM applications are based on open data models that support the
sharing of data both inside and outside the enterprise (this is called the
extended enterprise, and includes key suppliers, manufacturers, and end
customers of a specific company). This shared data may reside in diverse
database systems, or data warehouses, at several different sites and
companies.
By sharing this data "upstream" (with a company's suppliers) and
"downstream" (with a company's clients), SCM applications have the potential
to improve the time-to-market of products, reduce costs, and allow all parties
in the supply chain to better manage current resources and plan for futureneeds.
Increasing numbers of companies are turning to Web sites and Web-based
applications as part of the SCM solution. A number of major Web sites offere-
procurement marketplaces where manufacturers can trade and even makeauction bids with suppliers.
http://searchsqlserver.techtarget.com/definition/data-warehousehttp://searchcio.techtarget.com/definition/e-procurementhttp://searchcio.techtarget.com/definition/e-procurementhttp://searchcio.techtarget.com/definition/e-procurementhttp://searchcio.techtarget.com/definition/e-procurementhttp://searchcio.techtarget.com/definition/e-procurementhttp://searchsqlserver.techtarget.com/definition/data-warehousehttp://searchsqlserver.techtarget.com/definition/data-warehousehttp://searchsqlserver.techtarget.com/definition/data-warehouse -
7/30/2019 Group 3 Dynamic Forces
32/32
IvesBeth
Lei
DomsJoji Tere
6
SI
K