MIDTERM ACTIVITY 1: (FOR ASYNCHRONOUS)

Name: _ARVEN A. FRANCO_______ Date:______________________

Course, Year and Major: _BSBA III-FM__________________
Week No. 7-8

I. MULTIPLE CHOICE:
Directions: Read each item carefully. Write in the space provided
the letter of the correct answer.
__b___1. When a buyer has complex requirements and plans to
negotiate price and terms with a supplier, this is requested in the:
a. request for quotation c. request for bid
b. request for proposal d. none of the above
_a____2. Its goal is to obtain the right materials by meeting quality
requirements, in the right quantity, for delivery at the right time and
right place, from the right source, with the right service, and at the right
price:
a. supply chain management c. production and operations
b. logistics d. supply management
_d____3. It concretizes supply chain management:
a. value chain concept c. inventory management
b. logistics d. competitive strategy
_d____4. Another term for carrying costs:
a. ordering costs c. holding costs
b. set-up costs d. inventory costs
_b____5. An operational strategy whereby the company estimates its
demand for raw materials and make sure that raw materials
are delivered on time:
 a. procurement c. selling
b. just-in-time d. purchasing
_a____6. The process where a company sells more of its current
products by seeking and tapping new markets:
a. market development c. market penetration
b. product development d. community development
__d___7. An internal growth strategy where the company sells “new”
products to an existing market:
a. market development c. market penetration
b. diversification d. product development
__c___8. Implemented when the organization concentrates on a limited
market segment and creates a market niche based on
differentiated features like design, utility, and
practicality:
a. focused/ market-niche lower cost strategy
b. best-cost provider strategy
c. focused/market-niche differentiation strategy
___c__9. Its goal is to radically catapult or leapfrog the organization by
completely introducing new products and services through
highly differentiated products and services of an
organization:
a. technology strategy c. innovation strategy
b. operational effectiveness strategy d. none of the above
___c__10. Its objective is to perform better by making the structure lean,
Streamlining wasteful and inefficient processes:
a. economies of scale c. operational effectiveness strategy
b. technology strategy d. none of the above
II. IDENTIFICATION
 Directions: Read each item carefully. Identify the correct
terminology to complete the given statements. Write your
answers on the space provided after each number.

1. Supply management is a raw material that is coded with brief but

complete details like date, identification
number, the originating department, the account to
be charged, complete description of the raw
material or service, and others.

2. ______________ refers to a sequence of interlinked undertakings

that an organization operating in a specific
industry engages in.

3. Supply chain management is a broad continuum of specific

activities employed by a company like
purchasing, production and operations,
logistics, and marketing and sales.

4. Product / operation consists of manufacturing and assembly.

5. Logistics consists of efficient warehousing, inventory

tracking, order entry and management,
distribution and delivery to customers.

III. ESSAY
Direction: Answer the following questions in no less than 5
sentences.
1. In what ways are sourcing and ordering related to inventory
management? Give at least two examples.
- In sourcing and ordering the mean goal is to procure their raw
materials like accurately forecasting demand and ordering in bulk
to avail of quantity discounts. Optimum ordering of stocks
increases efficiency while scheduled purchases contribute toa
decrease in inventory cost. Which related to inventory
management that the goal is ensuring that a company always has
the products it needs on hand and that it keeps costs as low as
possible. For example, in a restaurant or food chain the company
are going to find a supplier which can give them a discount in bulk
order and has a good quality product. Which the restaurant can
decreased their operational cost and lower the price of good for the
costumers.

2. What are the components of the logistics circle? What possible

problems can companies encounter in managing logistics?
- Logistic management includes the supervision of certain sequential
processes. These include warehousing, scheduling, dispatching,
transportation, and delivery.
- The possible problem can companies encounter in managing
logistics is lack of effective coordination. Since there are many
parties involved (manufacturers, storekeepers, drivers, managers,
and end users) it’s impossible to have centralized control over
every step of the way. Fragmentation often leads to general
inefficiency.
3. When is market penetration a good growth strategy? Give at least
two examples.
- When a company must increase its growth, for example if we are
selling average of 10 apples per day in a month, then we can push
for a 14 apples per day, 24 apples and so on. Another example is
when company still has opportunities to add to its customer base
by targeting its competitors' clients and woo them over to Apple
products and services.

4. In your own understanding how do you define competitive

strategies? Cite an example.
- Competitive strategies in my own understanding is to prevent loss
of market against competitor. Competitive strategies is action plan
which includes offers product and service at the lowest cost
possible in the industry and also has a variety of product and
services that competitors do not offers that will appeal better to its
customers or buyers. If these two strategies are combining this may
be the best unique and low-cost product that can satisfy costumers
or buyers.
5. What does a company get when it pursues a competitive
differentiation strategy? Give an example to support your answer.

- A competitive differentiation strategy is an approach business

develop by providing customers with something unique, different,
and distinct from items their competitors may offer in the
marketplace. The main objective of implementing a differentiation
strategy is to increase competitive advantage. For example,
Jollibee and McDonald’s they are same fast food chain with almost
same product. Their mean target market is a kid who wants
spaghetti, fries, toys etc. The differences between two fast food
chain are their entertainment segment which help them to be
unique in one other that increase their competitive advantages.