Al Carlo M.

Llovit
BSMA-IV
BUS.A TTH 5:30-7:00
Chapter 6
Activity 1

General Electrics Standards

Standards are the criteria that enable managers to evaluate

future, current, or past actions. They are measured in a variety of
ways, including physical, quantitative, and qualitative terms. Five
aspects of the performance can be managed and controlled: quantity,
quality, time cost, and behavior. Each aspect of control may need
additional categorizing. This may also reflect specific activities that are
necessary to achieve organizational goals. Goals are translated into
performance standards by making them measurable. Management
must develop standards in all performance areas touched on by
established organizational goals. The various forms standards are
depend on what is being measured and on the managerial level
responsible for taking corrective action. By having these standards it
would really help the company to improve its operations, enhancing
relationship among subordinates and to regulate every departments of
the company.

Activity 2

Cecilio Kwok Pedro and Alfredo Yao: The Toothpaste and Fruit
Drink Moguls

1. What do you think are the philosophy in life of Cecilio Kwok Pedro
and Alfredo Yao?

The philosophy in life of Cecilio Kwok Pedro and Alfredo Yao

is that these two have experienced disappointments in life but
they turned it into an opportunity to become a successful person.
Pedro and Yao really focused on how to operate the business well
and as it turned out they are able to innovate and diversify their
products.

2. How did they apply their philosophy in business?

They have a common interest towards work and that is

they help other people (especially the PWDs) to provide them
work and by having this unique objective on hiring workers, he
gave opportunity to disabled people to be productive by
employing deaf and mute workers.
 Activity 3

Porters Supply Chain Model

Creating a cost advantage based on the value chain a firm may

create a cost advantage: By reducing the cost of individual value chain
activities, or by reconfiguring the value chain. Note that a cost
advantage can be created by reducing the costs of the primary
activities, but also by reducing the costs of the support activities.
Recently there have been many companies that achieved a cost
advantage by the clever use of Information Technology. Once the value
chain has been defined, a cost analysis can be performed by assigning
costs to the value chain activities. Porter identified 10 cost drivers
related to value chain activities:
1. Economies of scale.
2. Learning.
3. Capacity utilization.
4. Linkages among activities.
5. Interrelationships among business units.
6. Degree of vertical integration.
7. Timing of market entry.
8. Firm's policy of cost or differentiation.
9. Geographic location.
10. Institutional factors (regulation, union activity, taxes,
etc.).
A firm develops a cost advantage by controlling these drivers
better than its competitors do. A cost advantage also can be pursued
by "Reconfiguring" the value chain. "Reconfiguration" means structural
changes such as: a new production process, new distribution channels,
or a different sales approach.
 Normally, the Value Chain of a company is connected to other
Value Chains and is part of a larger Value Chain. Developing a
competitive advantage also depends on how efficiently you can
analyze and manage the entire Value Chain. This idea is called: Supply
Chain Management. Some people argue that network is actually a
better word to describe the physical form of Value Chains: Value
Networks.

Activity 4

Contingency Planning

Contingency plans protect a company from unforeseen threats. A

contingency is an unexpected event or situation that affects the
financial health, professional image, or market share of a company. It is
usually a negative event, but can also be an unexpected windfall such
as a huge order. Anything that unexpectedly disrupts a company's
expected operation can harm the company even if the disruption is
because of a windfall. That is why companies create contingency plans
for many possiblesituations, so company management has a pre-
researched plan of action to immediately follow. Some threats usually
covered in contingency plans are crisis management, business
continuity, asset security, mismanagement and reorganization.

Nokia Has a 'Contingency Plan' if Windows Phone 8 Fails

Nokia's new chairman reveals the company has a back-up plan in

the event Windows Phone 8 fails to impress.

In early 2011, Nokia announced that it was finally stepping away

from its own-brand smartphone OS and partnering with a another
company to bring in a third party operating system. That partner was
Microsoft and the third party OS was Windows Phone 7. At the time,
Nokia said it would be making Windows Phone its primary smartphone
OS. However, it seems Nokia has a back up plan should things not pan
out with Windows Phone.

Newly appointed Nokia chairman Risto Siilasmaa made the

revelation during a recent TV interview in Finland. CNet points to a
report in Finnish newspaper Yle Uutiset that quotes Siilasmaa as saying
Nokia has a "contingency plan" should Windows Phone 8 "fail to live up
to expectations." However, Siilasmaa added that the Finnish company
was confident Windows Phone 8 would be a success.

It's not yet clear what Nokia's contingency plan might be. While
it's good to know Nokia hasn't put all its eggs in Microsoft's basket, the
company's attempts to break into the smartphone market with
Symbian and Meego have been unsuccessful. With Nokia's share prices
falling, we're not sure it would survive starting over with yet another
smartphone platform in the event Windows Phone 8 doesn't pan out.

Preparing for a Product Recall 2016

From vehicles to pharmaceuticals to food products, what might risk

managers learn from mass media coverage of product recalls? For
manufacturers of all types of consumer goods, they might serve as a
wake-up call to the potential impact of a product recall event and a
lesson in what should be done immediately to prepare for potential
exposures. According to data from the U.S. Consumer Product Safety
Commission (CPSC), there are an average of 35,000 consumer product-
related injuries every year.

Costs from a product recall or contamination can easily become many

millions of dollars. In addition to the physical expense of a recall, falling
sales due to poor consumer confidence, brand rehabilitation expenses
and potential shareholder lawsuits may also contribute to long-term
losses.

Despite recall frequency and the potential for extraordinary costs, most
companies dont adequately plan, prepare and practice foror buy
insurance to protect againstproduct recall events. In addition to
proper insurance coverages, careful planning is essential in managing
the risk of a recall.