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| are all the activities required to transform inputs into outputs. |
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| involve relationships with suppliers and include all the activities to receive, store, and disseminate inputs. |
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| include all the activities required to collect, store, and distribute the output. |
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| activities inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase. |
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| includes all the activities required to keep product or service working effectively for the buyer after it is sold and delivered. |
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| is the acquisition of inputs, or resources, for the firm. |
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| Human Resource Management |
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| consists of all activities involved in recruiting, hiring, training, developing, compensating, and if necessary dismissing or laying off personnel. |
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| Technological Development |
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| pertains to the equipment, hardware, software, procedures and technical knowledge brought to bear in the firm’s transformation of inputs into outputs. |
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| serves the company’s needs and ties its various parts together. It consists of functions or departments such as accounting, legal, finance, planning, public affairs, government relations, quality assurance, and general management. |
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| Efficient Consumer Response |
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a.) Eliminating unnecessary costs associated with warehousing, distribution/transport, handling damaged goods
Decrease existing inventories, cross-docking, JIT delivery
b.)Create a market environment that encouraged true innovation & included smaller players-NPD, cut cycle time |
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| ECR would bring Efficiencies in Product? |
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Definition
Assortment-SKU(Shelf Keeping Units), identify slow moving, low profit product
Replenishment- EDI(Electronic Data Interchange), communication between retailer & manufacturer
Promotion- Buying “on deal”
Production- Weed out losers |
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| Activity based accounting |
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| Basis for better Pricing, tracking costs for each category they create a statement |
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Retailer’s strategy: Category v.s. individual SKU
Increasing importance of cross-merchandising-Chips and salsa on the same isle. |
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| Objectives of Porter’s Value Chain & Value System |
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Definition
Looks at how companies carry supporting & primary activities to maximize profits.
Be the preferred supplier or Salesperson
Salesperson is the linkage between the company and the consumer
Communicate sources of value to the customer |
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| Purpose of the Customer Purchase Equation |
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Definition
To understand value it is necessary to understand a customer’s. . .
Past experiences
current situation
culture |
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Value is an interactive experience
comparative (or relative). It depends on a rating or ranking one thing against another |
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| Personal Value differs among? |
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| The sales (and marketing) process is about creating perceived value in the customer’s mind... How do you create perceived value in a customers mind? |
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Understanding each customer’s unique value set and personal situation
Engineering the product/service bundle that fits the customers value set and unique needs.
communication that value effectively
Deliver the value package |
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| Value=Quality received/expectations |
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Consumer wants and needs
Convenience to buy
Cost to satisfy
Communication |
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| Top 8 reasons customers switch service providers |
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Definition
8)Involuntary Switching
7) Ethical Problems
6) Competition
5) Response to failed service
4) Inconvenience
3) Pricing
2) Failed service encounters
1) Core service failures |
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Term
| The model of the Five Competitive Forces was developed by? |
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Definition
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| Five Forces have become an important tool to? |
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Definition
| analyze an organizations industry structure in strategic processes. |
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| These forces determine... |
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Definition
| the intensity of competition and hence the profitability and attractiveness of an industry. |
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| objective of corporate strategy should be to? |
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Definition
| modify these competitive forces in a way that improves the position of the organization. |
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| Based on the information derived from the Five Forces Analysis, management can do what? |
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Definition
| can decide how to influence or to exploit particular characteristics of their industry. |
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| comprises all sources for inputs that are needed in order to provide goods or services. |
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Competitive rivalry within the industry
Threat of new entrants
Threat of substitutes
Bargaining power of suppliers
Bargaining power of customer |
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Term
| Supplier bargaining power is likely to be high when |
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Definition
The market is dominated by a few large suppliers rather than a fragmented source of supply,
There are no substitutes for the particular input,
The suppliers’ customers are fragmented, so their bargaining power is low,
The switching costs from one supplier to another are high
The buying industry has low barriers to entry. |
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Term
| the bargaining power of customers determines how much customers can impose pressure on? |
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Definition
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| Customers bargaining power is likely to be high when |
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Definition
They buy large volumes, there is a concentration of buyers,
The supplying industry comprises a large number of small operators
The supplying industry operates with high fixed costs,
The product is undifferentiated and can be replaced by substitutes |
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Term
| The threat of new entries will depend on the extent to which there are barriers to entry. These are typically? |
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Definition
Economies of scale (minimum size
requirements for profitable operations)
High initial investments and fixed costs
Cost advantages of existing players due to experience curve effects of operation with fully depreciated assets
Brand loyalty of customers
Protected intellectual property like patents, licenses etc,
Scarcity of important resources, e.g. qualified expert staff
Access to raw materials is controlled by existing players,
Distribution channels are controlled by existing players,
Existing players have close customer relations, e.g. from long-term service contracts,
High switching costs for customers
Legislation and government action |
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Term
| A threat from substitutes exists if there are ----------- with ------ prices of ----------- performance parameters for the same purpose. |
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Definition
| alternative products;lower;better |
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Term
| threat of substitutes is determined by factors like? |
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Definition
Brand loyalty of customers,
Close customer relationships,
Switching costs for customers,
The relative price for performance of substitutes
Current trends |
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Term
| High competitive pressure results in pressure on price, margins, and hence, on -------- for every single company in the industry. |
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