Slides Week 2 PDF

Agenda 4 April 2024 1. Organisation 2. Student presentations: Ahmad Ghalayini and Tirthkumar Vipulkumar Dobariya (mini-pres.) Kishan Kishorbhai Thummar (elevator pitch) 3. Recap: What is a company? 4. Company as an open system 5. Porter‘s value chain model Case Study: Starbucks...

Agenda 4 April 2024 1. Organisation 2. Student presentations: Ahmad Ghalayini and Tirthkumar Vipulkumar Dobariya (mini-pres.) Kishan Kishorbhai Thummar (elevator pitch) 3. Recap: What is a company? 4. Company as an open system 5. Porter‘s value chain model Case Study: Starbucks 14 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 14  Overview ‚Introduction to Management‘, Summer Semester 2024 March April May June July 4. Lecture 2. Lecture 6. Lecture 4. No Class 2 mini-presentations + 2 mini-presentations + 2 mini-presentations + Exam week 2 elevator pitches 2 elevator pitches 2 elevator pitches 21. Welcome + 11. Lecture 9. No class 13. Lecture Syllabus + Lecture 2 mini-presentations + 2 mini-presentations + 2 elevator pitches 2 elevator pitches 28. No class 18. Lecture 16. Lecture 20. Lecture 2 mini-presentations + (video + study 2 mini-presentations + 2 elevator pitches 2 elevator pitches material) 25. Lecture 23. Lecture 27. Last lecture 2 mini-presentations + (video + study 2 mini-presentations + 2 elevator pitches 2 elevator pitches material) 30. No class 15 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 15  Recap of week 1 Recap-crossword puzzle 'Intro to Mgmt week2' In an open system, typical organizational outputs are products, services, information, ___________, and profit. A common categorization of economic goods uses the 'typ of relationship' between goods as a differentiator. Here, there are complementary, unrelated, and _____________ goods. A company can be described as an open, dynamic, complex, autonomous, market-oriented, productive _______ system. Porter's value chain consists of _________ and secondary activities. In economies, we differentiate between free, and _______________ goods. The opposite of open systems are closed systems. Closed systems have no interaction with the environment, are linear, and there is no __________ loop. Households are __________-oriented units. Rights and _________ are intangible goods. Material goods can be differentiated according to the purpose of the goods into ______________ and production goods. Business administration is an interdisciplinary and _________- oriented discipline. The value _________ is a business model that describes the full range of activities needed to create and deliver a product or service. Economic units: companies and _________________ The term economy includes all institutions and __________ that are directly or indirectly involved in the satisfaction of human needs for scarce resources and goods. A company creates _______ by combining production factors in a unique way. 16 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 16  …is an open system that continuously interacts with its environment Open system 17 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 17  Example: Insurance industry 18 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 18  Now it’s your turn… …to create an example for the open system model  You find the task description, and a template on moodle under the title ‘task ‘open system’’ 19 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 19  …creates value by combining production factors in a unique way. Porter’s value chain model Firm infrastructure Value chain = a Secondary Human Resource Management activities business model Technology development that describes Procurement the full range of activities needed to create and Inbound Outbound deliver a product Operations Marketing & Sales Customer Service logistics logistics or service. Primary Activities Source: Porter, M. (2008), Competitive Advantage: Creating and Sustaining Superior Performance. 20 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 20  What are value activities? physically and technologically distinct activities a firm performs every value activity consists of purchased inputs, human resources (labor & mgmt), and some form of technology value activities use and create information. value activities may also create financial assets, or liabilities 21 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 21  Porter’s value chain model Firm infrastructure Secondary Human Resource Management activities Technology development Procurement Inbound Outbound Operations Marketing & Sales Customer Service logistics logistics Primary activities internal Value chain of Value chains Value chains Value chains the company of of suppliers of buyers distributors Markets – across companies 22 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 22  Discussion of the value chain model What do you think of the value chain model? (How) can it help manage a company? 23 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 23  Why did Porter develop the value chain model? Porter saw that some companies outperform others What are typical markers of a good He wanted to know why! market position? What do they tell us? Porter developed the value chain model to detect value activities inside a company  Structured analysis of a company’s activities  Identify and then strengthen a company’s competitive advantage  Build a strategy on this competitive advantage 24 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 24  Crossword puzzle Try to solve the crossword puzzle with what you have learned so far. Time: 10 min 25 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 25  Recap-crossword puzzle 'Intro to Mgmt week2' In an open system, typical organizational outputs are products, B E H A V I O U R services, information, ___________, and profit. A common categorization of economic goods uses the 'typ of relationship' between goods as a differentiator. Here, there are S U B S T I T U T I O N complementary, unrelated, and _____________ goods. A company can be described as an open, dynamic, complex, S O C I A L autonomous, market-oriented, productive _______ system. Porter's value chain consists of _________ and secondary P R I M A R Y activities. In economies, we differentiate between free, and E C O N O M I C _______________ goods. The opposite of open systems are closed systems. Closed systems have no interaction with the environment, are linear, F E E D B A C K and there is no __________ loop. C O N S U M P T I O N Households are __________-oriented units. S E R V I C E S Rights and _________ are intangible goods. Material goods can be differentiated according to the purpose C O N S U M E R of the goods into ______________ and production goods. Business administration is an interdisciplinary and _________- P R A C T I C E oriented discipline. The value _________ is a business model that describes the full range of activities needed to create and deliver a product or C H A I N service. H O U S E H O L D S Economic units: companies and _________________ The term economy includes all institutions and __________ that are directly or indirectly involved in the satisfaction of human P R O C E S S E S needs for scarce resources and goods. A company creates _______ by combining production factors in V A L U E a unique way. 26 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 26  Test question brainstorm 1. In which model do we have a feedback loop? A: The open system model 2. What attributes describe a company. Please name three. 3. Value activities may create financial assets or ____________. A: liabilities 4. To what group would you attribute books? A: Durable consumer goods 27 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 27  Procurement Planning, sourcing, and purchasing of inputs used in the company's value chain, e.g.: - Raw materials - Modules and components - Auxiliary and operating materials - Fixed assets - Services 28 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 28  Example: Starbucks (1) handles all the procurement for its own coffee beans instead of using agents or other traders Check out: supplier development and recognition program https://supplychain digital.com/brochu procurement as a service for their licensees re/how-starbucks- reaping-rewards- three-year- sourcing- transformation 29 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 29  Inbound logistics Transporting, receiving, storing, and distributing supplies for operations: - Transportation from the supplier to the warehouse/plant/office General definition of logistics: - Material handling in the plant/office manage the flow of goods, - Warehousing services, and information between the point of origin - Inventory management (source) and the point of - Quality control consumption - Handling of supplier or customer returns, e.g. empty reusable soda bottles Source: https://www.inboundlogistics.com/articles/what-is-inbound-logistics/ 30 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 30  https://youtu.be/pspYPdFLmN4 31 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 31  Example: Starbucks (2) company-appointed coffee buyers select the finest quality coffee beans (green, unroasted) from producers in Latin America, Africa, and Asia transport to storage sites beans are roasted and packaged packaged beans are then sent to distribution centers (some company- owned and some operated by other logistic companies) Value is added to the beans through Starbucks’ proprietary roasting techniques and special branded packaging.  Also: 1. The company does not outsource its procurement, ensuring high-quality standards right from the point of selection of coffee beans. 2. Starbucks operates ten farmer support centers. Logo: https://www.freepnglogos.com/pics/starbucks-logo-png 32 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 32  33 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 33  34 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 34  https://youtu.be/IRqgQ0ClNak 35 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 35  Outbound logistics Storing, moving, picking, packing and delivering goods to their destination – the end- user or customer, including: Storage of finished goods Material handling Order fulfilment Inventory management Scheduling 36 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 36  https://youtu.be/afr6c2JIewc 37 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 37  Outbound logistics process Order is received, Products are Goods transported and sent to the picked and packed; to distribution warehouse mgmt. inventory is centers system adjusted Where do you see a chance Delivery drivers do Customer receives for ‘the last mile’ order delivery optimization? 38 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 38  Goods, information, and money flows in in- and outbound logistics https://www.slideteam.net/media/catalog/product/cache/960x720/s/t/structure_of_inbound_and_outbound_logistics_slide01.jpg 39 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 39  Differentiation in- and outbound logistics Source: https://www.inboundlogistics.com/articles/what-is-inbound-logistics/ 40 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 40  Six ‘Rights’ of Logistics The RIGHT goods in the RIGHT quantities in the RIGHT condition Delivered to the RIGHT place at the RIGHT time for the RIGHT cost 41 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 41  Example: Starbucks (3) very little or no presence of intermediaries in product selling for Starbucks majority of the products are sold in stores storage and distribution to retail locations are important 42 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 42  Operations Activities associated with the effective and efficient transformation of inputs into the final product/service: Mechanical processing Assembly Packaging Equipment maintenance Quality testing 43 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 43  Example: Starbucks (4) baristas prepare coffee drinks (87,000 variations!) and sell them in a shop or drive thru also: sandwiches, cakes, other beverages operates in more than 80 markets: company-owned stores or licensed stores (not a traditional franchise system); 32,000 stores globally financial report: revenue is created to 51 % in company- operated stores, 49 % in licensed stores almost same number of stores in N.A. and ‘international’, but majority of net revenue stems from N.A. 44 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 44  45 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 45  Research task - Open the annual report ‘Starbucks Fiscal 2023 Annual Report’ 1. To what percentage do the three operating segments contribute to the total net revenue? hint: page 5 2. To what percentage do food items contribute to the total revenue as of Oct. 1, 2023?  hint: page 8 46 WEIDEN BUSINESS SCHOOL Prof. Dr. Matthias Fischer Weiden i. d. OPf., 5. April 2024 46