Porter's Five Forces model is used to analyze industry structure and competition. It examines five forces: threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, and rivalry among existing competitors. The document discusses how the model provides a framework for understanding how these different competitive forces determine the attractiveness and profitability of an industry. It also notes some limitations of applying the model given changes in technologies and industries over time.
Technology and innovation make significant influence in today’s market and it has become the basic requirement for any organization to make the survival of any industry. Therefore, organizations try to implement technology advancements with innovation in order to protect their market position for long time. This report is based on one of famous case analysis of Eastman Kodak Company. Even the Kodak has competitive market position in traditional photography film industry; they lost their market position with digital transformation of photography.
Report explains the Kodak case with reference to the selected three strategic perspectives such as Blue ocean strategy, strategy as narrative and transient advantage. Each of these strategies discuss with three initiatives. Three initiatives such as: academic review of the theory, implication to the case study and recommendations for future improvements. Finally, it explains the conclusion and recommendations of the case analysis.
Management Strategy: The Core Competence of the Corporation.
Based on Harvard Business Review with same title article written by C.K. Prahalad and Gary Hamel
Operational Effectiveness Is Not Strategy
Operational Efficiency
Competitive Strategy
Strategy Rests on Unique Activities
Origin of Strategic Position (3 Sources)
Variety /Need /Access-Based Positioning
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
External Challenges to Strategy
Traps for Shaping Strategy
Technology and innovation make significant influence in today’s market and it has become the basic requirement for any organization to make the survival of any industry. Therefore, organizations try to implement technology advancements with innovation in order to protect their market position for long time. This report is based on one of famous case analysis of Eastman Kodak Company. Even the Kodak has competitive market position in traditional photography film industry; they lost their market position with digital transformation of photography.
Report explains the Kodak case with reference to the selected three strategic perspectives such as Blue ocean strategy, strategy as narrative and transient advantage. Each of these strategies discuss with three initiatives. Three initiatives such as: academic review of the theory, implication to the case study and recommendations for future improvements. Finally, it explains the conclusion and recommendations of the case analysis.
Management Strategy: The Core Competence of the Corporation.
Based on Harvard Business Review with same title article written by C.K. Prahalad and Gary Hamel
Operational Effectiveness Is Not Strategy
Operational Efficiency
Competitive Strategy
Strategy Rests on Unique Activities
Origin of Strategic Position (3 Sources)
Variety /Need /Access-Based Positioning
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
External Challenges to Strategy
Traps for Shaping Strategy
This is an analysis on Apple's Financial condition in 2013 where there's an excess cash and recommendation on how to do financial decision based on the condition.
What is a Strategy? Michael Porter - Harvard Business ReviewDonny Sitompul
What is Strategy
Operational Effectiveness Is Not Strategy
Strategy Rests on Unique Activities
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
McKinsey & Company: Managing Knowledge and LearningDisha Ghoshal
As part of Strategy execution, this presentation on was on how McKinsey & Company flourished throughout the years by Managing Knowledge and Learning diligently.
This is an analysis on Apple's Financial condition in 2013 where there's an excess cash and recommendation on how to do financial decision based on the condition.
What is a Strategy? Michael Porter - Harvard Business ReviewDonny Sitompul
What is Strategy
Operational Effectiveness Is Not Strategy
Strategy Rests on Unique Activities
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
McKinsey & Company: Managing Knowledge and LearningDisha Ghoshal
As part of Strategy execution, this presentation on was on how McKinsey & Company flourished throughout the years by Managing Knowledge and Learning diligently.
The Five Competitive Forces That Shape Strategyby Michael E..docxcherry686017
The Five Competitive Forces That Shape Strategy
by Michael E. Porter
Editor’s Note: In 1979, Harvard Business Review published “How Competitive Forces Shape Strategy” by a young economist
and associate professor, Michael E. Porter. It was his first HBR article, and it started a revolution in the strategy field. In
subsequent decades, Porter has brought his signature economic rigor to the study of competitive strategy for corporations,
regions, nations, and, more recently, health care and philanthropy. “Porter’s five forces” have shaped a generation of academic
research and business practice. With prodding and assistance from Harvard Business School Professor Jan Rivkin and
longtime colleague Joan Magretta, Porter here reaffirms, updates, and extends the classic work. He also addresses common
misunderstandings, provides practical guidance for users of the framework, and offers a deeper view of its implications for
strategy today.
In essence, the job of the strategist is to understand and cope with competition. Often, however, managers define competition
too narrowly, as if it occurred only among today’s direct competitors. Yet competition for profits goes beyond established
industry rivals to include four other competitive forces as well: customers, suppliers, potential entrants, and substitute products.
The extended rivalry that results from all five forces defines an industry’s structure and shapes the nature of competitive
interaction within an industry.
As different from one another as industries might appear on the surface, the underlying drivers of profitability are the same. The
global auto industry, for instance, appears to have nothing in common with the worldwide market for art masterpieces or the
heavily regulated health-care delivery industry in Europe. But to understand industry competition and profitability in each of
those three cases, one must analyze the industry’s underlying structure in terms of the five forces. (See the exhibit “The Five
Forces That Shape Industry Competition.”)
The Five Competitive Forces That Shape Strategy - Harvard Business Reviewhttp://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/pr
1 of 16 9/23/2013 8:58 AM
If the forces are intense, as they are in such industries as airlines, textiles, and hotels, almost no company earns attractive
returns on investment. If the forces are benign, as they are in industries such as software, soft drinks, and toiletries, many
companies are profitable. Industry structure drives competition and profitability, not whether an industry produces a product or
service, is emerging or mature, high tech or low tech, regulated or unregulated. While a myriad of factors can affect industry
profitability in the short run—including the weather and the business cycle—industry structure, manifested in the competitive
forces, sets industry profitability in the medium and long run. (See the exhibit “Differences in Industry Profitability.”)
Differences in Ind ...
THE JAPANESE TRANSFORMER INDUSTRY A CASE STUDY OF ITS COMPETITIVENESSijcsit
Transformers are one type of magnetic component used in relevant structures like power Switch supplies. Transformers are the necessary parts in all products involving electricity, for the alteration of current voltage during the processes of power generation, transformation, transmission and distribution .Relevant discussions in Japan concerning transformers have centered on power industries and power systems. Transformers for household and business use are mostly categorized under electronics-related industry, one of the ten major consumer electronics industries (most of the mare middle and small-sized firms).Relevant literatures primarily focus on the study of related technology, with little attention paid to the competitive edge and future prospects of transformer-related industries. Case studies indicate that Japanese enterprises are disappointed with the governmental efforts and assistance directed to the improvement of existing technologies. As the executive director of one of the transformer associations in Japan pointed out, no advancement has been shown in this technology for nearly the last 20years.Most companies can improve themselves only in reaction to errors; the lack of specialized knowledge derived from research strongly decreases the industry's progressive power and postpones its development. Japan has lagged considerably behind Europe and the US in this aspect. The transformer companies in Japan will have great difficulty in cultural and language communication if they invest in foreign countries. In this study, experts and scholars in the fields of industry, government and academia are interviewed. Questionnaires are issued to the object companies and a comparative case study is conducted to analyze the influencing factors on the competitive edge and strategies in Japan in the hope that an effective reference for improving industrial competitiveness can be available for the government and the companies
The Effect of Business Strategy on Innovation and Firm Performance in the Sma...theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The papers for publication in The International Journal of Engineering& Science are selected through rigorous peer reviews to ensure originality, timeliness, relevance, and readability.
Theoretical work submitted to the Journal should be original in its motivation or modeling structure. Empirical analysis should be based on a theoretical framework and should be capable of replication. It is expected that all materials required for replication (including computer programs and data sets) should be available upon request to the authors.
The International Journal of Engineering & Science would take much care in making your article published without much delay with your kind cooperation.
INDUSTRY ANALYSIS One of the major competences that str.docxcarliotwaycave
INDUSTRY ANALYSIS
One of the major competences that strategic managers need is the ability to define their business, conduct an effective industry analysis,
and identify the "key success factors" for firms competing in their industry. This brief note discusses the steps most often found in a
solid analysis of an industry.
A.DEFINE THE INDUSTRY.
The boundaries for an industry analysis are determined by the markets and products that best describe the domain of the industry. Once
you fully understand the business segment that is to be analyzed, you are in a position to identify the capabilities required to participate
successfully in that industry, and the competitors that are likewise able to effectively target the same business segments. These
elements set the parameters for understanding and analyzing the industry. As industries converge and shift, business definitions become
more difficult. In virtually all industries, consumers are becoming more demanding for customized products and services. These
demands encourage the development of innovations, products, and competitors.
B. DESCRIBE THE INDUSTRY STRUCTURE.
For each product-market segment, an industry analysis will describe the "five-forces" of competition. The five forces discussed briefly
below predict the long run profitability of an industry and are an important first step in analyzing the industry once it has been identified.
1. Bargaining Power of Buyers: This primary force comes from the customer segments that make up the markets in which firms
compete. The size and importance of customers influences their power to negotiate prices and terms that reduce the overall
profitability of the industry. The sizes and types of buyers present in an industry determine their potential influence on product
development and influence the level of competition to be found in the industry.
2. Intensity of Rivalry: A second force comes from the competitors and the ways they compete. Each competitor offers a set of
products and services that attempts to provide higher value to the product-market segments they address. Strategies can be
designed to provide combinations of higher performance, more fashion and features, higher quality, or lower price. Increased
rivalry always leads to price or service competition that reduces the profitability of the industry.
3. Bargaining Power of Suppliers: A third influence on the profitability of an industry comes from its suppliers. In some industries,
suppliers might control critical inputs that can affect all firms’ ability to compete. Analogous to Bargaining power of Buyers,
whenever suppliers are large or few, their leverage tends to be high. Limited access to critical factors of production, equipment,
materials, or components can increase prices and accordingly limit profit potential.
4. Threat of New Entrants; a fourth force represents the ease with which a new competitor can compete for exi ...
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
2. Porter's Five Forces Model:
Analyzing Industry Structure
Central to Michael E. Porter's landmark
works on Competitive Strategy (1980) and
CompetitiveAdvantage (1985) are the
framework of structural analysis and the
definition of an industry. According to Porter,
“industry structure has a strong influence in
determining the competitive rules of the
game as well as the strategies potentially
available to the firm”.
3. By providing considerable freedom for firms to
draw the boundaries, Porter ensures that firms
which apparently view themselves as part of an
industry are, in fact, more realistically parts of
different industries.This paradox is visible in multi-
product industries such as automobile industry
wherein each product group, trucks, buses, cars,
three-wheelers, two-wheelers and tractors could
each be considered as an industry based on the fact
that different customers use these different product
groups.
Porter’s paradox
4. Porter’s paradox
Structural analysis is rooted in the industry whose
definition itself is not rooted in any particular
methodology.There would also be a possibility of
defining the industry in terms of broad factor
commonalities such as four-wheelers and two-
wheelers. Strategy formulation is expected to be based
on structural analysis based on multiple industry and
market segments.
5. At another level, the distinction between a
product and its service has blurred, and the
symbiosis between a product and its applications
has increased enormously.The application of
structural analysis, therefore, seems imperfect
whichever canvas is chosen to define the industry.
There seems to be a case for redrawing the
parameters of structural analysis and industry
definition in the current era, which has been a
resultant of over three decades of profound
technological changes.
Porter’s paradox
Source: http://cbrao2008.blogspot.com/2011/07/structural-analysis-and-industry.html
6. P.E.S.T. Analysis
is a scan of the external
macro-environment in
which an organization
exists. It is a useful tool
for understanding the
political, economic,
socio-cultural and
technological
environment that an
organization operates in.
7. Industry Structure
A final dimension of industry that
is important to the performance
of new firm is industry structure.
The structure of the industry
refers to the nature of barriers to
entry and competitive dynamics
in the industry.
8. Four characteristics of industry
structure are particularly important to
the performance of new firms in the
industry
Industry Structure
Capital
intensity
Advertising
intensity
concentration
Average size
firm
9. Capital Intensity
Capital intensity
measures the
importance of
capital as
opposed to
labor in the
production
process.
10. Advertising Intensity
Advertising is a mechanism
through which companies
develop the reputations
that help them sell their
products and services.
12. Average Firm Size
New firms perform better in industries in which the average
size of firms is small. New firms tend to begin small as a way
to minimize the risk of entrepreneurial miscalculation.That
is, if entrepreneurs begin small, they have a lower downside
loss if they are incorrect. In industries in which most firms
are small, starting a new firm at a small scale does not
create much of a disadvantage relative to the established
firms in the industry.In contrast, in industries where the
average firm size is large, starting small creates a number of
disadvantages, such as the inability to purchase in volume
and higher average manufacturing and distribution costs
due to the absence of economies of scale.
13. P.E.S.T. Analysis
POLITICAL FACTORS
These include government
regulations such as
employment laws,
environmental regulations
and tax policy. Other
political factors are trade
restrictions and political
stability.
eg – tax policy,
employment laws
P-Noy signs
law
strengthening
NEA
14. P.E.S.T. ANALYSIS
ECONOMIC FACTORS
These affect the cost of capital
and purchasing power of an
organization. Economic factors
include economic growth,
interest rates, inflation and
currency exchange rates. eg –
economic growth, interest rates
World Competitiveness Rank
In a neighborhood of so-called "Asian
tigers," the Philippines has quietly emerged
as the region's newest economic darling. At
6.6 percent, the Filipino economy's current
GDP growth rate is the second highest in
Asia, behind only China's.
15. P.E.S.T. ANALYSIS
SOCIAL FACTORS
These impact on the consumer’s need and the potential market
size for an organization's goods and services. Social factors
include population growth, age demographics and attitudes
towards health. eg – health consciousness, population growth
rate
The country is being heralded as the new Asian success story, but only an elite few
reap the rewards (JILLIAN KEENAN MAY 7 2013, 8:06 AM ET).
16. P.E.S.T. ANALYSIS
TECHNOLOGICAL FACTORS
These influence barriers
to entry, make or buy
decisions and investment
in innovation, such as
automation, investment
incentives and the rate of
technological change.
eg – R & D activity,
automation, technology
incentives
17. Industry Structure
(Porter’s 5 Forces)
Porter's five forces of competitive position analysis
was developed in 1979 by Michael E. Porter of Harvard
Business School as a simple framework for assessing and
evaluating the competitive strength and position of a
business organization.
This theory is based on the concept that there are
five forces which determine the competitive intensity
and attractiveness of a market. Porter’s five forces helps
to identify where power lies in a business situation.This
is useful both in understanding the strength of an
organization's current competitive position, and the
strength of a position that an organization may look to.
18. the PORTER DIAGRAM
Porter’s Five Forces of
Competition Framework
SUPPLIERS
POTENTIAL
ENTRANTS SUBSTITUTES
BUYERS
INDUSTRY
RIVALRY
Threat of
new entrants
Threat of
substitutes
19. NEUTRALIZING THE FIVE FORCES
FORCE METHOD FOR
NEUTRALIZING
Entry Erecting barriers (isolating
mechanisms)
Rivalry Compete on non-price
dimensions
Substitutes Improve attractiveness
compared to substitutes
Buyers Reduce buyer uniqueness
Suppliers Reduce supplier uniqueness
20. Preparing for the Future :
The Role of ScenarioAnalysis in Adapting to Industry Change
Stages in undertaking multiple Scenario
Analysis:
Identify major forces driving industry change
Predict possible impacts of each force on the industry
environment
Identify interactions between different external forces
Among range of outcomes, identify 2-4 most likely/ most
interesting scenarios: eg: configurations of changes and
outcomes
Consider implications of each scenario for the company
Identify key signposts pointing toward the emergence of each
scenario
Prepare contingency plan
22. Efficiency Analysis of Electric
Cooperatives in the Philippines.
Philippine Management
Review 2011,Vol. 19, 1‐10. University
of the Philippines, College of Business
Administration, Diliman, Quezon City
1101, Philippines
23. The Analytical Categories
Efficiency
With this is meant the amount of outputs created
and their equality in relation to the resources
(capital and human efforts) invested.
The efficiency of electricity distribution in remote areas of the Philippines
by 120 electric cooperatives (ECs) is examined using data envelopment analysis
(DEA). Using data from 2001to 2006, the study finds that most ECs can reduce all
their inputs proportionately by up to 18percent and still produce the same level
of output. The study shows that efficiency of ECs rises with size.
This result is robust with respect to how size is defined. Unsurprisingly, the
levels of inefficiency are inversely related to system losses. The study also shows
that structural and operational characteristics significantly affect EC efficiency.
EC are likewise found to be inefficient in the non-technical component of their
distribution costs vis‐à‐vis their line operations and maintenance costs
(Valderrama, et al: 2011)
24. Efficiency
This study has shown that a number of structural as well as
operational factors significantly affect the efficiency of grid-
connected ECs. These are sales ands customer density,
customer structure, size,( as measured by sales volume and
number of customers), systems loss and number of customers
per employee. These are not totally surprising results.
What they imply, however, is that ECs should in the Philippines
resist external pressure (usually from local resist external pressure
(usually from local politician) to expand in areas with low
density so as not to sacrifice their efficiency even more. The
study also identifies two initiatives ECs can undertake to improve
their technical efficiency, reduce systems loss and
personnel. The most efficient ECs had an average 303
customer per employee, while the least efficient ones had only
221 customers per employee.
25. The Analytical Categories
Relevance
The issue here is to what extent the program
or project has addressed or is addressing
problems of high priority, mainly as viewed
by actual and potential stakeholders,
particularly the program’s beneficiaries and
any other people who might have been its
beneficiaries.
26. The Analytical Categories
Effectiveness
Effectiveness expresses to what extent the
planned outputs, expected changes, intended
effects (immediate and effect objectives) and
intended impact (development objective) are
being or have been produced or achieved.
27. The Analytical Categories
Impact
Means the overall consequences of the program
or project for the intended beneficiaries and any
other people.
The productivity of the EC as a whole seems to have stagnated
during the post –EPIRA period. A possible reason for this is that
demand in the last three years (2004-2006) have been flat (the
compound annual growth rate is 1.1 % with 37 ECs experiencing
negative growth) compared with the 21.7% sales growth rate the
cooperative experienced during the period 2001-2003. As a
reversal in demand growth trend is not foreseeable given the
present economic conditions, efficiency in the sector have become
more of an imperative than ever (Valderrama, et al: 2011).
28. Impact
Since the passage of the Electric Power Industry
Reform Act (EPIRA) in 2001, the Philippines
embarked on a comprehensive restructuring of its
power industry. From a vertically integrated,
extensively publicly owned utility business, the industry
was envisioned to be broken down into its main
components with a deregulated and effectively
privatized generation and supply sectors.
Despite the reform efforts through the EPIRA
enactment however, power rates in the Philippines
continue to be among the highest in Asia and remain a
source of concern for industries in the country
struggling to remain competitive with their regional
counterparts (Valderrama, et al: 2011)
29. The Analytical Categories
Sustainability
This means the maintenance or
argumentation of positive achievements
induced by the evaluated program or project
(or any component of it) after the scheme (or
any component of it) has been terminated.
30. The Analytical Categories
Replicability
Replicability means the feasibility of
repeating the particular program or project or
parts of it in another context i.e. at a later
time, in other areas, for other groups of
people, by other organizations, etc.
31.
32. TRIVIA:
In putting up a business, the following factors
should be considered.
Stop! Don't Do It!
Don't start a business in a capital intensive
industry.
Don't start a business in an advertising intensive
industry.
Don't start a business in an industry in which the
average sized firms are large.
Don't start a business in a concentrated market.
33. Questions to Ask Yourself
Is the industry that I am planning to enter a
good one for starting a new company?
Are the knowledge conditions in the industry
favorable to a start-up?
Are demand conditions in the industry
favorable to a start-up?
Is the industry at the right stage of the life
cycle for a start-up?
Is the industry structure favorable for a start-
up?
34. Sources:
Helena Agnes S.Valderrama and Carlos C. Ba
utista (2011) Efficiency Analysis of Electric
Cooperatives in the Philippines. Philippine
Management Review 2011,Vol. 19, 1‐10.
University of the Philippines, College of
Business Administration, Diliman, Quezon
City 1101, Philippines
Edwin B.R. Gbargaye (2010) Lecture of
Strategic Planning Analytical Categories.
Sual, Pangasinan