five force analysis and business process reengineering
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FIVE FORCE
ANALYSIS AND
BUSINESS PROCESS
REENGINEERING
SUBMITTED BY :
AKSHITA KHANDELWAL-15/92106
HEENA SONI-15/92121
INDE
X
1. MICHAEL E PORTER’S DESCRIPTION
2. 5 FORCE ANALYSIS3. STRENGTH AND LIMITATIONS OF 5
FORCE ANALYSIS4. BUSINESS PROCESS REENGINEERING
5. WHAT IS BUSINESS PROCESS?
6. WHAT IS REENGINEERING?
7 .REASONS FOR REENGINEERING
8. BENIFITS OF REENGINEERING
9. BPR PRINCIPLES10. PROCESS OF BPR11.EXAMPLE OF BPR12.CONCLUSION13. BIBLIOGRAPHY
MICHEAL E. PORTER’S FIVE FORCE ANALYSIS
MICH
AEL E
. PO
RTER
Born in 1947Professor in Howard business school
Introduced porter’s five forces model
Has Written 18 books and 125 articles
Source-https://www.google.co.in/search?q=michael+
e+porter&biw=1366&bih=623&source=lnms
&tbm=isch&sa=X&ved=0ahUKEwiC4ZGsto_P
AhXJmZQKHW95BwcQ_AUIBigB#imgrc=y-u_P
SRw4FGx9M%3A
source- https://www.google.co.in/search?q=five+
force+analysis&espv=2&biw=1366&bih
=623&source=lnms&tbm=isch&sa=X&v
ed=0ahUKEwiy_viTt4_PAhVBRZQKHZ-0AF
UQ_AUIBigB#imgrc=QtPXrWa-yug4KM%3
A
1.TH
REAT
OF
NEW
ENT
RANT
S
BARRIERS TO ENTRY-- Economies of scale
- Capital requirement- Product differentiation
- Customer switching cost- Government policy
- Access to distribution channel- Expected retaliation
2. B
ARGA
ININ
G PO
WER
OF
SUPP
LIERS
SUPPLIERS EXERT POWER IN THE INDUSTRY
BY- Threatening to raise price and reduce quality.
Powerful suppliers can squeeze industry profitably
if firms are unable to raise cost increases.
SUPPLIERS ARE LIKELY TO BE POWERFUL IF
- Supplier’s industry is dominated by a few firms
- Supplier’s products have few substitutes
- Buyer is not an important customer to suppliers
- Supplier’s products are differentiated
- Supplier’s product has high switching cost.
- Supplier’s product is an important input to buyer’s
product
3. B
ARGA
ININ
G PO
WER
OF
BUYE
RS
BUYER’SCOMPETE WITH THE
SUPPLYING INDUSTRY BY- - Bargaining down prices
- Forcing higher quality - Paying firms off of each other BUYERS ARE LIKELY TO BE POWERFUL IF-
- Buyers are concentrated- Buyers face few switching cost
- Buyers have full information
- Products are undifferentiated
- Buyers present a credible threat of
backward integration
4. T
HREA
T OF
SU
BSTI
TUTE
Products with similar features
limits the change in prices .
KEYS TO EVALUATE SUBSTITUTE
PRODUCTS: Products with improving price
/performance tradeoffs relative to
present industry products - EXAMPLE- - Electronic security system in place
of security guards - Fax machines in case of overnight
mail delivery
5. R
IVAL
RY A
MONG
EXIS
TING
COM
PETI
TORS
INTENSE RIVALRY OFTEN PLAYS OUT IN
THE FOLLOWING WAYS: Using price competition Staging advertising battles Increasing consumer warranty or service
Making new product introductions
OCCURS WHEN A FIRM IS PRESSURED OR SEES AN
OPPORTUNITY- Price competition often leaves the entire
industry worse off. Advertising battles may increase total
industry demand but may be costly to
smaller competitors
STRENGTHS
The five forces
model is a strong
tool for
competitive
analysis on
industry level
It provides useful
information for
performing a
SWOT analysis.
LIMITATIONS
Inside out strategy is
ignored.
It does not copes with
synergies and
interdependencies within
the portfolio of large
corporations.
The environments, which
are characterized by rapid,
systematic and radical
change require more
flexible, dynamic or
emergent approaches to
strategy formulation.
Sometimes it may be
possible to create
completely new markets
instead of selecting from
existing ones.
BUSINESS PROCESS REENGINEERING
INTRODUCTIONIn today’s ever-changing world, the
only thing that doesn’t change is
‘change’ itself. In a world increasingly
driven by 3 C’s- customer,
competition and change,Companies
are on the new lookout to find the
solutions for their business problems.
Recently, some of the more successful
business corporation in the world seem
to have hit upon an incredible solution-
BUSINESS PROCESS REENGINEERING.
FOR EXAMPLE:Walmart reduced
restocking time from 6 weeeks to 36
hours.
WHAT IS BUSINESS
PROCESS ?A business process is a
collection of activities which
together produce something
of value to a customer.
WHA
T IS
RE
ENGI
NEER
ING
? Reengineering is the fundamental
rethinking and radical redesign of
business processes to achieve
dramatic improvements in critical
contemprory measures of
performance such as cost,
quality, service and speed.
BPR advocates that enterprises
go back to the basics and
reexamine their very roots.
It doesn’t believe in improvements. Rather it aims at
total reinvention. BPR focusses on processes and
not on tasks, jobs and people.
REASONS FOR
REENGINEERINGOLD ERA
High demand.
Efficiency
Control
NEW ERA
High competition
Innovation
Speed
Service and
quality
BPR
PRIN
CIPL
ES
Organise around outcomes, not
tasks. Have those who use the output of
the process perform the process.
Subsume information processing
work into the real work that produces
the information. Treat geographically dispersed
resources as though they were
centralized Capture information once and at the
resource Link parallel activities instead of
integrating their results. Put decision points where the work is
performed and builds control into the
process.
PREPARE FOR BPR
• Build cross functional team
• Identify customer driven objectives
• Devolep strategic purposes
MAP &ANALYSIS AS IS PROCESS
• Create activity models
• Create process models
• Simulate & perform ABC
DESIGN TO BE PROCESSES
• Benchmark processes
• Design to be processes
• Validate to be processes
• Perform trade off analysis
IMPLEMENT REENGINEERED
PROCESSIMPROVE
CONTINUOUSLY
•Evolve implementation plan
•Prototype & simulate transition plan
•Initiate training programs
•Implement transition plan
•Initiate ongoing measurement
•Preview performance against targets
•Improve process continuously.
PROCESS OF BPR
EXAM
PLE
OF
BUSI
NESS
PRO
CESS
RE
ENGI
NEER
ING
FORDIn his suggestion to FORD Michael
Hammer proposed something radical:
ELIMINATE THE INVOICE. In the new
scenario, a buyer no longer needs to send
a copy of the purchasing order form to the
creditor administration. Instead he
registers an order in the online database.
When the items appear at the store the
storekeeper checks whether these
corresponds to the purchase order form in
the system. In the old system it did not
have access to this form. If the items
match the order, he accepts them and
registers this in the computer system. If
they do not, the items are returned.
Hammer reported that ford benefited
drastically from this change with an almost
75%decrease in workforce in the accounts
payable department.
CONCLUSION
ON
BPR
Empowering employees Eliminating waste ,
unnecessary management
overhead, and obsolete and
inefficient processes. Producing often significant
reductions in cost and cycle
times Enabling revolutionary improvements in many business
processes as measured by
quality and customer service
Helping top organisations to
stay on top and low achievers to
become effective competitors.
REFERENCES http://www.slideshare.net/yuvar
ajhid/porters-five-forces-248471
82?next_slideshow=1
https://en.wikipedia.org/wiki/Por
ter%27s_five_forces_analysis
http://www.businessnewsdaily.c
om/5446-porters-five-
forces.html
http://www.slideshare.net/Neelk
amalSharma/business-process-r
eengineering-
15362180
https://en.wikipedia.org/wiki/
Business_process_reengineering
WIKEPEDIA
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