[19:28:07] --------------------------Home-------------------------[19:28:27] --------------------------Paper P3-------------------------[19:28:56] patrots269: hi everyone
[19:29:01] buff: evening all
[19:29:25] tom.mcdonald217: hello everyone
[19:30:04] patrots269: ok its time to start
[19:30:22] patrots269: lets look at porters value chain
[19:30:32] patrots269: what are the two activities
[19:30:52] buff: primary and secondary
[19:31:12] patrots269: primary and support
[19:31:36] patrots269: what are the primary activities
[19:32:03] buff: inbound logistics, operations, outbound logistics, sales and marketing, service
[19:32:05] tom.mcdonald217: inbound logistics, operations, outbound logistics, sales & marketing,
support
[19:32:11] PriyaK: inbound logistics, operations, outbound logistics, marketing and sales and after
sales services
[19:32:37] patrots269: give me an example of inbound logistics
[19:32:55] PriyaK: handling and storing od materials
[19:32:57] tom.mcdonald217: raw materials
[19:33:21] patrots269: consider a restaurant it is bringing in the raw materials the food
[19:33:43] patrots269: using the same ex what would be the operations
[19:33:56] tom.mcdonald217: cooking the food!
[19:34:01] patrots269: yes
[19:34:23] patrots269: and what would the outbound logistics be
[19:34:31] tom.mcdonald217: outbound = serving the food!
[19:34:47] buff: or delivering if they do that
[19:34:54] patrots269: very good
[19:35:17] patrots269: marketing & sales is next
[19:35:36] buff: adverts in papers
[19:35:40] tom.mcdonald217: my local Indian takeaway says free delivery, but you get 10% discount
if you collect!
[19:36:38] patrots269: have you got the best marketing mix for your target market and have you
choosen your target market correctly
[19:37:07] patrots269: you could bring in the 7 p's
[19:37:28] tom.mcdonald217: McDonalds advertise everywhere, but local restaurant would not
advertise on television [19:37:40] patrots269: why not
[19:37:57] tom.mcdonald217: too expensive for probable payback
[19:38:09] Linda4: because they dn't have the finance to
[19:38:12] patrots269: target market not specific enough for them
[19:38:39] patrots269: they would probably use local radio or papers
[19:38:52] tom.mcdonald217: Yellow Pages
[19:38:53] PriyaK: but local restaurants do attract customers by keepin a bords outside their outlet
"today's special
[19:39:03] patrots269: yes
[19:39:40] patrots269: these are all activities that add what to the customer
[19:39:52] tom.mcdonald217: VALUE!
[19:39:54] buff: value
[19:40:17] tom.mcdonald217: buff's copying me - plagiarism!
[19:40:23] buff: lol
[19:40:24] Linda4: lol
[19:41:02] patrots269: customers do not purchase raw materials they purchase value. raw
materials + activities = customer value
[19:41:21] patrots269: what is the next value adding activity
[19:41:30] tom.mcdonald217: Service
[19:41:43] patrots269: yes
[19:41:58] patrots269: what is service
[19:42:07] tom.mcdonald217: good restaurants have good waiters, chefs etc
[19:42:16] buff: activities after point of sale
[19:42:29] patrots269: true
[19:42:36] PriyaK: to enhance the quality
[19:42:58] patrots269: so what would be an example of serice
[19:43:01] patrots269: service
[19:43:01] tom.mcdonald217: loyalty cards - e.g get 6th meal free
[19:43:20] patrots269: thats more like it
[19:43:44] tom.mcdonald217: yeah, waiters/chefs part of operations
[19:44:04] tom.mcdonald217: and outbound logistics
[19:44:14] patrots269: yes transforming inputs to final product
[19:45:20] patrots269: what does all these activities add up to for you the business
[19:45:34] tom.mcdonald217: {patrots269} you want to take me to dinner to test this out?
[19:45:48] buff: leads to improved margin
[19:45:52] patrots269: yes
[19:45:58] tom.mcdonald217: lol - that was supposed to be addressed to Linda4
[19:46:08] patrots269: how is margin calculated
[19:46:27] Linda4: {tom.mcdonald217} lol
[19:46:54] patrots269: sales - cost of sales
[19:47:12] patrots269: primary activities are all direct costs
[19:47:45] patrots269: so what type of cost are support activities
[19:47:58] tom.mcdonald217: overheads
[19:48:05] PriyaK: indirect
[19:48:55] patrots269: yes
[19:49:34] tom.mcdonald217: human resources = employment costs
[19:50:05] patrots269: Overhead expenses are all costs except for direct labor, direct materials &
direct expenses
[19:50:37] patrots269: what are the four support activities
[19:51:02] PriyaK: firm infrastructure, technology development, human resource development, and
procurement
[19:51:06] tom.mcdonald217: procurement, human resources, technology, and infrastructure
[19:51:07] buff: firm infrastructure, human resourc management, technology development,
procurement
[19:51:40] patrots269: what is firm infrastructure
[19:51:50] buff: how firm is orgsnised
[19:52:07] tom.mcdonald217: what in which firm interacts with other members of supply chain
[19:52:49] patrots269: how the firm is organised for example, centralised buying could result in cost
savings due to bulk discounts
[19:53:14] tom.mcdonald217: that's plagiarism = straight out of the book!
[19:53:23] patrots269: very true
[19:53:33] tom.mcdonald217: jk
[19:54:06] buff: {tom.mcdonald217} you working for the plagiarism police?!
[19:54:14] tom.mcdonald217: lol
[19:54:39] patrots269: the next one is hrm
[19:55:02] patrots269: what is hrm
[19:55:19] tom.mcdonald217: human resources management = best people for the job
[19:55:30] tom.mcdonald217: to include induction, training
[19:55:44] patrots269: yes
[19:56:31] patrots269: secure personnel of the right skills at the right time and quantity
[19:56:39] tom.mcdonald217: restaurant gains competitive edge by having customer-friendly staff
[19:57:14] tom.mcdonald217: instead of some kid who couldn't care less if he spills your drink
[19:58:14] patrots269: what is the next support activity
[19:58:19] tom.mcdonald217: friendly face to greet you, dold the door on the way out
[19:58:22] tom.mcdonald217: hold
[19:58:28] buff: Technology development
[19:58:59] patrots269: yes
[19:59:14] buff: restaurant - automated order machine that prints out order in kitchen, quicker
[19:59:15] tom.mcdonald217: e.g. restaurant bill prepared on computerised till, easy to read,
accurate
[19:59:49] tom.mcdonald217: always remembers to add service charge - lol
[19:59:57] buff: lol
[20:00:38] patrots269: next one is procurement
[20:02:32] patrots269: could you bring in the 9 m's for this
[20:02:53] patrots269: acquisation of goods and services
[20:04:09] patrots269: what do you think
[20:04:15] tom.mcdonald217: manpower, money, management, manufacturing, machinery,
[20:04:30] tom.mcdonald217: manpower = right balance of staff
[20:05:04] tom.mcdonald217: money = competitively priced, depending on target sector
[20:05:32] patrots269: ok we are doing well
[20:06:02] tom.mcdonald217: management = business run for customers' benefit
[20:06:25] patrots269: market orientated
[20:07:28] tom.mcdonald217: manufacturing = obtaining materials at competitive price, operations
run smoothly (due to management!)
[20:08:31] tom.mcdonald217: machinery = business has adequate, reliable machinery to ensure
smooth ooperation, no down time
[20:08:48] patrots269: ok what are value networks
[20:09:36] tom.mcdonald217: combination of value chains with different businesses
[20:09:48] buff: how suplier, distributor and buyer value chains link with the organisations
[20:09:55] tom.mcdonald217: e.g. Fedex delivery with Amazon
[20:10:13] tom.mcdonald217: my turn for plagiarism
[20:10:24] buff: farm to brewery to pub
[20:10:34] tom.mcdonald217: to ME!
[20:10:34] patrots269: links between the inbound logistics of the firm and the outbound logistics of
its suppliers
[20:10:57] Linda4: {buff} lol, interesting eg
[20:11:11] tom.mcdonald217: can go further - after sservice provided by another party
[20:11:21] buff: i'm still feeling the effects of those value chains
[20:11:26] Linda4: lol
[20:11:52] patrots269: ok lets have a look at porters generic strategies
[20:12:01] tom.mcdonald217: Homeserve provides service on appliances for Homebase
[20:12:16] patrots269: yes
[20:12:40] buff: cost leadership, differentiation, focus
[20:13:02] patrots269: tell me about cost leadership
[20:13:37] buff: try to cut cost with the aim or reducing selling price
[20:13:55] patrots269: decide who you are competing against
[20:14:18] patrots269: perform a value chain to decide what customers value
[20:14:48] patrots269: understand costs and cost drivers
[20:15:22] tom.mcdonald217: profits achieved through high turnover of low price product
[20:15:46] patrots269: called economies of ?????
[20:15:52] buff: scale
[20:15:54] patrots269: yes
[20:16:07] tom.mcdonald217: scale - I don't like scales - they tell me I'm too heavy
[20:16:17] patrots269: haha
[20:16:34] tom.mcdonald217: I need some economy of scale!
[20:16:56] tom.mcdonald217: but not till after Linda4 takes me for that meal!
[20:17:11] patrots269: try to make a product at
[20:17:27] patrots269: better quality at the same price
[20:18:01] tom.mcdonald217: unless customer is not interested in better quality, would rather have
lower price
[20:18:11] buff: {tom.mcdonald217} agreed
[20:19:26] patrots269: what is the next one
[20:19:35] buff: differentiation
[20:19:35] tom.mcdonald217: differentiation
[20:19:42] buff: lol - i win
[20:19:46] tom.mcdonald217: lol
[20:19:56] patrots269: how can you differentiate a product
[20:20:06] tom.mcdonald217: make it better!
[20:20:15] PriyaK: those that r unique
[20:20:19] patrots269: there are ten
[20:20:27] tom.mcdonald217: better quality
[20:20:31] buff: branding
[20:20:34] PriyaK: design
[20:20:46] patrots269: packaging
[20:20:58] buff: support
[20:21:06] PriyaK: image
[20:21:22] patrots269: customer service
[20:21:34] patrots269: style
[20:21:52] PriyaK: performance
[20:21:56] tom.mcdonald217: logistics
[20:22:55] patrots269: meaning the flow of goods or information
[20:23:19] patrots269: what is the next strategy
[20:23:31] buff: focus
[20:24:13] patrots269: another name for focus
[20:24:20] buff: niche
[20:24:25] patrots269: yes
[20:24:25] tom.mcdonald217: specialisation
[20:24:53] patrots269: so you could provide a better service
[20:24:58] tom.mcdonald217: e.g. as an accountant, I could specialise in management accounts
[20:25:19] buff: limiting product range = low costs
[20:25:36] buff: aka cost focus
[20:25:53] patrots269: what should you avoid
[20:25:59] tom.mcdonald217: exams
[20:26:14] Linda4: hahahaha
[20:26:34] PriyaK: {Linda4} really wahts gone wrong with the guys today?
[20:26:48] patrots269: getting stuck in the middle
[20:26:55] tom.mcdonald217: with you
[20:27:00] buff: lol
[20:27:09] tom.mcdonald217: we could do a song about that
[20:27:38] tom.mcdonald217: stuck in the middle = no man's land
[20:28:10] tom.mcdonald217: you will lose out either on price or quality
[20:28:48] Linda4: {tom.mcdonald217} you seem to be really enjoying this P3...that's good
[20:29:03] tom.mcdonald217: must be the company
[20:30:10] patrots269: what resource are we short of
[20:30:25] tom.mcdonald217: I could alsways do with more money
[20:30:41] patrots269: time
[20:30:55] tom.mcdonald217: was just about to say that
[20:31:10] tom.mcdonald217: Wednesday 7:30?
[20:31:41] patrots269: ok we will cover chapter 6 on wed 22nd sept 7.30 pm uk time
[20:31:42] PriyaK: day after tomorrow's fine
[20:31:53] buff: ok by me
[20:32:02] PriyaK: done
[20:32:07] patrots269: see you all then
[20:32:19] tom.mcdonald217: Enjoy the rest of the evening everyone, see you Wednesday
[20:32:24] buff: thanks guys see you wednesday