Group 3 Dynamic Forces

7/30/2019 Group 3 Dynamic Forces

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Carlos, Grace

Cuarto, Lea Anna

Garcia, Elizabeth

Palma, Ivy Marie

Pena, Domingo

Sobremisana, Maria Theresa

07 November 2012 ASOG, Katipunan, Quezon City


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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.


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Guide Questions


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- 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


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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


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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


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Type of Industry and Firm Size*

*www.dti.gov.ph


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*www.dti.gov.ph

Top 5 Industry Groups*


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The Video that Defies All

Known Sciences with 6 Million Hits and Likes


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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


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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


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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


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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


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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


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- 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


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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


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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


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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)


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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


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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


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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).


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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


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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


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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


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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


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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.


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Elements of Supply Chain:

Customer

PlanningPurchasingInventory

ProductionTransportation


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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.


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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


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Group 3 Dynamic Forces