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Culianan, Aaron Charles - Activity 1
Culianan, Aaron Charles - Activity 1
An Activity
Presented to Prof. Ester R. Guerzon
of the Polytechnic University of the Philippines
Sta. Mesa Manila
By
Culianan, Aaron Charles V.
December 2022
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
ACTIVITIES/ASSESSMENTS:
1. Identify what are the opportunities and threats in the industry. Discuss briefly.
Analysis. It is an analysis in which both the external and internal environment are
considered.
advantage for a company. And by doing a SWOT Analysis, it will help the company to
determine how to position the firm so it can take advantage of those identified
On the other hand, threats are those internal and external factors that have a potential
to affect not only the company’s operation but even its whole structure, negatively.
Identification of these threats will come in handy in SWOT Analysis by positioning the firm
b) Increase in competition.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
procedures and involves a lot of professional judgment. Nevertheless, being aware of what
is potentially out there will help the firm’s management and those charge with governance
Industry life cycle refers to four stages such as: 1) Introduction Stage; 2) Growth Stage; 3)
Introduction stage is characterized by slow sales growth and lack of profits because
product and encourage customers to try it. During this stage, only a few, basic products
Growth stage, during this stage, the opportunity for cost reductions is at its maximum
because production volume is increasing at a high rate. Thus, fixed costs are being
spread over more units of production, and the benefits of the learning curve is being
realized. Some indication of this stage is when a new customers are trying the products,
Maturity stage. In this stage, sales growth declines and competitors are most
even direct and price competition and strategic emphasis on efficient operations.
Decline stage. The first symptom of the decline stage of a product’s life cycle triggers
such other effects as price cutting, narrowing of the product line, and reduction in
promotion budgets.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
From this we can conclude that through these lenses the management perspective is
not in the short-term sense of the business going concern assumption, rather the company
3. Examine how Porter’s five forces model are used as an analytical tool in achieving
Porter’s five forces model is a useful tool for analyzing the industry or industries in
a) The threat of new entrants. This threat practically states that if there is a new
competitors, the profits recorded from previous year as this will the base of forecasting the
profits for future periods, such forecasting will be impaired as the new competitors will have
an impact to the established profits of the firm. Accordingly, this new entry can be prevent
if the business is larger than the new entry; there is a product differentiation; the financing
of the company is flexible; there is an access to a much larger distribution channels; and
b) The bargaining power of suppliers. This power is evident when the supplier is so low
that it can practically dictates the price of the raw materials you used in the business.
c) The bargaining power of buyers. This implies that the supply of the product is
practically in the hands of the buyer. This can be observe if it is concentrated or purchases
large volume relative to seller sales; the product is at its standard or easily interchangeable;
it faces few switching costs; the product earns low profit; the product is not important to the
d) The threat of substitutes. This threat is present when the product of the business is
not so ordinary that it can be substitute. This threat will prevent the company to take
advantage on having a large profit margin as their product is not deem to be in demand as
e) The intensity of competitive rivalry. Competition is always present in the market but
its intensity can be quantifiable. If the product or services is in the same line of business
and its advertisement and reviews to the public is almost impossible to differentiate given
that the opportunity of expansion is almost equally, this can be seen as having a high
intensity. The opposite of the described scenario above will entails a low intensity.
In conclusion, this model will determine the attractiveness of the industry in which the
focal firm is competing. As attractiveness increases, so does the possibility that your focal
firm will be able to earn above-average returns by using its chosen strategies.
4. Explain and discuss the following how these affect the organization.
strategy that creates superior value for customers and that its competitors are unable to
duplicate or find too costly to imitate.” Therefore, having a competitive advantage it will
positively affect the organization. But it worth to realize that competitive advantage is not
permanent.
(b) Value chain. It is the set of activities required to design, develop, produce, market, and
deliver products and services to customers. Some authors also describes that the life cycle
responsiveness to customers are the four building block of competitive advantage. With
efficiency, it has an indirect relationship with the costs incurred. The higher the efficiency,
the lower its cost to incur. Conversely, quality and responsiveness to customer has a direct
relationship to the cost it may charge the customer. The higher the quality and having
superior customer service or responsiveness to customer will lead to higher costs it may
charge its customers. For innovation, the superior the innovation will result to higher prices.
These building blocks of competitive advantage will aid the business entity to become more
profitable, have lower expenses incurred but higher revenue recorded because of the
premium charged to customers and have its edge among its competitors in the market.
However any company can adopt these building blocks regardless of the industry and
services it provides, therefore, it is very crucial for a business entity to ensure their quality
have effective distinctive competencies. These are the capability that sets out the company
from its competitors and would greatly benefits the company as a whole. It allows the
business entity to cater a wider brand awareness and increases its reputation. The market
continues to evolve and get by on the new trends that emerge and these distinctive
competencies are vital for the continued existence of an entity, thus serving a new learning
its resources must satisfy these four conditions – valuable, rare, costly to imitate and
economic moat”. Having a durable competitive advantage will make an entity more
economical wherein companies achieves outstanding growth through profits and returns
for its shareholders, become superior, and continuously provides quality and reasonable
price. Competitive advantage alone is not sufficient for an entity to survive but rather its
durability. The durability of competitive advantage is a crucial and determining factor in the
5. How does an organization would achieve superior efficiency, quality innovation and
Being efficient is the ability to accomplish something with little waste of time, effort and
production such as labor, land, capital, etc., and converted into output which may be goods
or services. For a business entity to attain superior efficiency, is to utilize inputs in the most
productive way possible which is having fewer inputs required to produce a given output
Innovation refers to the changes made to make a process increase its efficiency with
minimum resources consumed thus reducing business risks and allows an entity to
something with novelty value, practical, timely and developed to address the current and
future needs of the stakeholders that are vital in the sustenance of an organization.
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efficiency are part of it. Any entity must provide and satisfy what the customer exactly
wants. It allows a company to improve response time and provide superior service because
in achieving positive response is about the speed and quality that you provide to the
customers. One could show prompt attentiveness and customers will then attribute more
value to the service provided that creates a competitive advantage among its competitors.