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WorksheetsLesson 2. Innovation & Quality Management
Total questions: 26
Worksheet time: 24mins
For analysing the global environment, we use:
5 forces of Porter
PESTEL Framework
Market segmentation
Value chain
In order to define an innovation strategy, the following instruments can be used in the strategic analysis of a sector: market segmentation, The detection of critical success factors and...
The Five Forces Model
PESTEL Framework
Value chain
The 5 forces of Porter are:
(a)
In the FORCE 1: FACTORS THAT INFLUENCE THE BUYER’S BARGAING POWER, we find:
POWER OF DISTRIBUTION CHANNELS, PRICE ELASTICITY OF DEMAND
HIGH FIXED COSTS
HIGH EXIT BARRIES
SLOW AGGREGATE INDUSTRY GROWTH
In the 5 forces model, when talking on "companies that want to enter and compete in an industry. The more attractive a sector is, the more potential participants there will be."
FORCE 1: FACTORS THAT INFLUENCE THE BUYER’S BARGAING POWER
FORCE 2: BARGAINING POWER OF SUPPLIERS
FORCE 3: RIVALRY AMONG EXISTING COMPETITORS
FORCE 4: THREAT OF SUBSTITUTE PRODUCTSOR SERVICES
FORCE 5 :THREAT OF NEW ENTRANTS. This barrier works in our favour when other companies cannot emulate the price of our products because they have highercosts.
GOVERMNET POLICY:
ACCESS TO DISTRIBUTION CHANNELS:
COST DISADVANTAGE:
CAPITAL INVESTMENTS:
In the segmentation, the characteristics of the Market/Product are..
Type of Intermediaries, Geographic situations and Specialization
Buyers, Technical Characteristics and dimensions
Prices, Services, Market Dimensions, Functionalities and Design
Prices,Type of Intermediaries, Services, Market Dimensions and Functionalities
A segment in the market must be:
Measurable, big enough, accessible, differentiable and actionable
Set on the competitive tools (costs, speed of delivery, etc.) on which the strategies of the companies in the sector are based.
Answer •1. WHAT DO CUSTOMERS WANT? (Demand Analysis)2. HOW DOES THE COMPANY SURVIVE COMPETITION? 3. KEY SUCCESS FACTORS
CRITICAL SUCCESS FACTORS
The critical success factors are those distinctive elements of the product or service that are particularly appreciated by the shareholders.
The critical success factors are those distinctive elements of the product or service that are particularly appreciated by the government.
The critical success factors are elements of the product or service that are particularly appreciated by a group of suppliers.
The critical success factors are those distinctive elements of the product or service that are particularly appreciated by a group of customers.
Critical Success Factors, should answer:
•1. WHAT DO CUSTOMERS WANT? (Supply Analysis)
•2. HOW DOES THE COMPANY SURVIVE COMPETITION? (Government policy)
•3. KEY SUCCESS FACTORS
•1. WHAT DO CUSTOMERS WANT? (Demand Analysis)
•2. HOW DOES THE COMPANY SURVIVE COMPETITION? (Competition policy)
•3. KEY SUCCESS FACTORS
•1. WHAT DO SUPPLIERS WANT? (Supply Analysis)
•2. HOW DOES THE COMPANY SURVIVE COMPETITION? (Competition policy)
•3. KEY SUCCESS FACTORS
On the critical success factors, the fashion sector has a competition policy with the following characteristics:
Low entry and exit barriers, low purchasing power of retail customers that lead to a soft competition
Low entry and exit barriers, low purchasing power of retail customers that lead to a intense competition
The proximity of competitors is highly important
Differentiation of the product requires good parking
The foundation of the company is the creation of value for:
(a)
To create value, companies manufacture (physically transforming materials into products), sell products (marketing in different locations) and/or provide services (whether tangible: transport; or intangible: consultancy, etc.).
True
False
To create value, companies manufacture (marketing in different locations), sell products (physically transforming materials into products) and/or provide services (whether tangible: transport; or intangible: consultancy, etc.).
True
False
Value creation: ADDED VALUE is the difference between the INCOME achieved with sales and the INTERMEDIATE COST corresponding to the factors of production.
Value added makes it possible, to pay shareholders and company owners (profits and pay wages and salaries to employees).
The lower the value added, the greater the possibility of reinvestment and of paying higher wages.
The greater the value added, the lower the possibility of reinvestment and of paying higher wages.
The Value chain
An organisation that has created more added value, is likely to be more profitable. When an organisation adds value to its products/services it gives consumers customer satisfaction.
An organisation that has created more added value, is likely to be less profitable. When an organisation adds value to its products/services it gives not consumers customer satisfaction.
Added value= income + costs
Added value= costs - income
The Value Chain: each product/service goes through the activities value is added. In order to manage the value chain, it is important to maximize value but also minimize costs at the same time.
Primary Activities: these activities are concerned with the creation of the product/service. Support Activities: these activities are used as the primary activities
Primary Activities: these activities are concerned with the creation of the product/service. Support Activities: these activities are used as the support of primary activities
Primary Activities: these activities are concerned with the support of the product/service. Support Activities: these activities are used as the primary activities
What are Primary Activities?
Inbound logistic: deals with turning input into output
Outbound logistic: these activities are the processes of enticing consumers to purchase your product/service
Service: these are the activities that maintain the value of the product/service after it has been purchased.
Inbound logistic: these activities are the processes of enticing consumers to purchase yourproduct/service
What are Primary Activities?
Inbound logistic, procurement, human resource management and infrastructure
Procurement, human resource management, technological development and infrastructure
Inbound logistic, operations, outbound logistic, marketing and sales and service
Procurement, human resource management, marketing and sales and service
What are the Support activities?
Inbound logistic, procurement, human resource management and infrastructure
Procurement, human resource management, technological development and infrastructure
Inbound logistic, operations, outbound logistic, marketing and sales and service
Procurement, human resource management, marketing and sales and service
On the support activities of the value chain:
Procurement- this is concerned with the support systems that are used to help the daily operations of the organisation.
Technological development- is concerned with how the organisation manages and processes information. As well as protecting the knowledge based of the organisation.
Infrastructure- is concerned with how the organisation manages and processes information. As well as protecting the knowledge based of the organisation.
Value network: Set of interrelations and connections between different companies and organisations that allow the manufacture of a product or the provision of a service.
A company operates in isolation. Its value chain is connected to that of its suppliers and consumers
This would not be possible without an aggressive strategy to open stores in proximity areas, and helping to reform local markets.
In order to offer the highest possible value, organisations enter into a process of specialisation by choosing which activities are carried out internally and which activities are contracted out externally (sour).
None is correct
Value network
Just-in-time processes meant bad harmonisation and coupling with subcontractors and suppliers.
With this approach, the generation of competitive advantages can be achieved by better coordination with upstream and downstream processes.
The case of MERCADONA with its inter-supplier strategy is not a good example of this type of coordination.
What is the vision of a company?
(a)
An example of the mission of the company is: meeting the needs of our customers through innovative and environmentally friendly products
True
False
An example of the strategic objectives:
Increase turnover in the innovative product line by a certain %.
Meeting the needs of our customers through innovative and environmentally friendly products
To become a reference company for the use of innovative processes in its sector
