The role of Information technology within a business is to improve productivity, minimise cost and help in quality decision making.
Success is measured through the efficiency and effective metrics. The efficiency metric measures the performance of the system (eg how fast it works) and the effectiveness metrics measures the impact that the system has on the business.(Baltzan P, Phillips A, Lynch K, Blakey P, 2010 Business Driven Information Systems, 1st edn, McGraw-Hill Australia)
2. List and describe each of the forces in Porter’s Five Forces Model?
http://consumerpackagedgoods.blogspot.com/2009/06/forces-shaping-packaged-food-industry.html
1.Buyer power- buyer power is high when consumers have more of a choice of products to choose from and low when there are not so many choices. Loyalty programs is a method used to reduce buyer power. Loyalty programs are designed to offer some sort of reward to consumers who purchase more of their products.
2.Supplier Power is when one particular supplier is the main distributor of products to consumers, therefore making buyer power low as there is no variety for the consumer to choose from.
The supplier chain is made up of all elements that are directly or indirectly in the process of making products and raw materials..(Baltzan P, Phillips A, Lynch K, Blakey P, 2010 Business Driven Information Systems, 1st edn, McGraw-Hill Australia)
3. Threat of Substitute is normally high when there are different types of products that all serve or provide the same service (examples of this are soft drinks and the different brands they come in) and is low when there is only one of a particular product that is designed for a specific purpose (examples of this are certain types of medicine that are one of a kind for a particular cure).
4.Threat of New Entrants is high when a new competitor can enter into the market easily and low when there entry barriers that to prevent new competitors entering.
5.Rivalry Among existing competitors is high when the competition in the market is fierce and is low when the competition is not so fierce.(Baltzan P, Phillips A, Lynch K, Blakey P, 2010 Business Driven Information Systems, 1st edn, McGraw-Hill Australia)
Describe the relationship between business process and Value chains
Business Processes are "a set of standardised activities that accomplish a specific task". Value Chains "values an organisation as a series of processes, each of which adds value to the product or service" Therefore, Value chains incorporate an organisations business process.(Baltzan P, Phillips A, Lynch K, Blakey P, 2010 Business Driven Information Systems, 1st edn, McGraw-Hill Australia)
Compare Porters 3 generic strategies
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