To select: A category and analyze how the category is strategic to an industry.
Category strategy development:
A category is a specific family of products or services that are utilized in delivering the appropriate value to the customer. A strategy is developed to deliver the category products or services in the
Explanation of Solution
Categorizing and analyzing how the category is strategic to an industry:
Oil versus gasoline:
The analysis made by EIA indicated that crude oil price is the main contributor to the change in gasoline prices in Country U. The prices of crude oil are greatly affected based on the level of supply relative to the demand for oil and petroleum products that are made from crude oil.
Strong worldwide demand and growth for petroleum products in the mid-period of the 2000s were the major reasons for the high crude oil prices in the mid of the year 2008. The seasonal change from summer gasoline to winter gasoline with lower cost combines along with reduced gasoline demand. It also contributed to the general reduction in prices from October to December 2011.
Oil prices have fluctuated widely since then mainly due to the concerns of petroleum supply worldwide and the economic conditions all over the world.
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Chapter 6 Solutions
Purchasing and Supply Chain Management
- 2. Attractions, Capital, and Human resources are the variables related to A. Demand side B. Supply Side C. One industry concept D. Special Interest Tourismarrow_forwardDiscuss the stages of a Strategic sourcing process and how you would choose which sourcing methodology to use when going to market for a good or service.arrow_forwardexplain the best approach for a balanced marketing strategy. Consider key supply chain aspects to add into the marketing mix (product, pricing, placement, and promotion) to prevent stockout and / or inventory surplus.arrow_forward
- S2→ S1→ S→ M→ D→ R→ C→ C1→C2Consider a FMCG firm which purchases raw material from different suppliers, manufacturer has variety of goods and sell across all Pakistan.a. Identify scope and structure of manufacturing firm.b. Identify 1st-Tier and 2nd-Tier supplier.c. Mention all possible dyadic relationship.arrow_forwardIdentify TWO of the five competitive forces that shape a company’s strategic activities. a. The bargaining power of buyers and suppliers b. The motivation of buyers with and/or without the suppliers c. The intensity of support among existing competitors d. The opportunities for new entrants in the marketarrow_forwardHow would the sizes of the potential market, available market, qualified available market, and served market vary for a business/organization? What are some limitations of the NAICS (North American Industry Classification System) categorization scheme? Under what circumstances is believed that the top-down market sizing approach would be more accurate? What about the bottom-up approach?arrow_forward
- What is the purpose of valuation in terms of industry perspective?arrow_forward7) What is the best way for a small hardware store to compete against Home Depot, when Home Depot can charge less for the same products? Select an answer: Focus on customer service, and create relationships. Try to convince Home Depot to close its store. Buy cheaper, inferior products. Try to find suppliers who will charge less for their products.arrow_forwardIn each case listed, state whether the factor listed is an advantage or a disadvantageof FMS. Discuss the reasons for your choice.a. Cost.arrow_forward
- Accor hotel industry Focus on industry-level data from Europe and UK Analysis The structure of the industry (degree of industry concentration or fragmentation, i.e. proportion of large, dominating firms v smaller firms) Structure of the industry, For example: the market share of major and/or small firms Industry size and growth rate over the 7 years Stage of the industry life cycle Industry value chain and how external factors, i.e. PESTEL factors, might affect key parts of the value chainarrow_forwardYou are in charge of analyzing five new suppliers of an important raw material and have been given the information shown below (1 = worst, 10 = best). Management has decided that criteria 2 and 3 are equally important and that criteria 1 and 4 are each four times as important as criterion 2. No more than two new suppliers are required but each new vendor must exceed a total score of 70 percent of the maximum total points to be considered. Rating PerformanceCriterion VendorA VendorB VendorC VendorD VendorE Quality of rawmaterial 8 7 3 6 9 Environmental impact 3 8 4 7 7 Responsiveness toorder changes 9 5 7 6 5 Cost of raw material 7 6 9 2 7 a. Which new vendors do you recommend?b. Would your decision change if the criteria were considered equally important?arrow_forwardPlease paraphrase It is important that the supply management student recognize an important point about the sequence in the category management process: Few organizations have fully executed the more complex strategies found in Phases 3 and 4. This is because of a variety of factors including the relative complexity of higher-level strategies, the resources and commitment necessary to execute the strategy, the lack of a supply base optimization effort, and personnel who lack the skills and capabilities necessary for developing advanced sourcing strategies. However, those that successfully execute more sophisticated and comprehensive sourcing strategies should realize greater performance improvement over time.arrow_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning