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Group Work 1 - BPO - FBPO101

Fundamentals of Business Process Outsourcing (Polytechnic University of the

Philippines)

Studocu is not sponsored or endorsed by any college or university

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Group Number: #06 BUMA 30013:

Group Members: BPO 101
- Agbulos - Magdamit
- Baldos - Recon
- Blanco - Santos
- Cantos - Sarcia
- De Guzman - Tariman
- Magbato
BSBA HRDM Section: 2-1 Sir. Hilarion C. Yanza II, MPM,DPO
Total Grade (%)

GROUP WORK 1

1. What is an organization?
People, tasks, and administration make up an organization, which is a group that works
together to accomplish goals within the confines of a well-defined structure. Remember that a
group of individuals must be able to communicate with one another and be ready to work
together to accomplish a goal in order for an organization to exist. In order to achieve their
goals, organizations must abide by the regulations that have been created. Additionally, these
organizations must have a network of resources in order to complete the tasks given to them
and meet the objectives established. Without this network, they will not be able to carry out their
duties or accomplish their goals. People, technology, economics, real estate, the environment,
and intangibles should all be included.
In an organization, individual objectives are sacrificed in favor of group goals, and group
goals are subordinated to organizational goals in order to maximize the advantage of the limited
resources that are at hand. There are various internal and external elements that affect a
company. Politics, the national economy, and laws are examples of external factors, whereas an
organization's plans, goals, and policies are examples of internal factors. An organization has
some influence over its own internal components, but it has no control over its external
circumstances. To properly handle problems brought on by such factors, an organization needs
constant vigilance and adaptability.

2. Discuss the importance of organizations.

Organization is the foundation upon which the entire management structure is built. It is
related to creating an outline in which the overall work is divided into manageable components

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to aid the achievement of objectives or goals. Every human association formed for the purpose
of achieving a common goal takes the form of an organization.
Throughout history and in all walks of life, organization has played an important role. The
importance of organizations is that, first, they bring together resources to achieve specific goals.
In other words, it is a valuable tool in the hands of management for achieving business goals.
Second, organizations produce goods and services that customers want at competitive prices.
Aside from pursuing their own missions and objectives, organizations also provide goods and
services that meet the needs of customers, where inputs or factors of production are converted
into outputs. Third, organizations create a drive for innovation rather than a reliance on standard
products and outmoded approaches to management and organization design. To stay ahead of
the competition, a flexible organizational structure must adopt new technologies and entail
forward-thinking and dynamism. Fourth, organizations adapt to and influence a rapidly changing
environment. A sound organization's redeeming feature is that it evolves in order to respond to
changing environments both internally and externally. Fifth, organizations create value for their
owners, customers, and employees. In which business success is based on value creation, the
interests of these three groups are interconnected. Lastly, organizations have to cope with and
accommodate today’s challenges of workforce diversity and growing concerns over ethics and
social responsibility, as well as find effective ways to motivate employees to work together to
accomplish organizational goals. Every organization must ensure that they communicate
effectively with their employees. Finally, the implementation of procedures, policies, safety rules,
and other vital information should also be created to address language and cultural barriers. As
a result, it is critical that the organizations function properly in order to complete the tasks for
which they were established.

3. Differentiate the two types of organizational dimensions.

The Difference between the two is that structural is a label given by an organization's
dimension to describe its internal traits. They establish a foundation for assessing and
contrasting organizations. To specifically understand the significance of organizational design,
there are six factors to consider: formalization, specialization, hierarchy of authority, complexity,
and centralization.The formalization describes the breadth of an organization's policies and
procedures. The split of organizational duties into different roles is called specialization, and it
also has to do with how complex operations are. The quantity and arrangement of levels in a
building are known as its hierarchy. In an organization, centralization refers to how widely

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distributed some functions are, either geographically or through integration with other functions.
Professionalism is the amount to which efforts are made to provide organization members with
the information and skills they need to perform their positions. And the last is personnel ratios
indicating the degree to which organizational procedures are standardized.

While the contextual dimensions are composed of Size, Technology, Environment, Goals
& Strategies, and Culture. It influences and shapes the structural dimension, and characterizes
the whole organization. The following are the Contextual of Organizational dimensions. First,
size is typically the number of people or organizational employees, and can be measured as a
whole or specific like divisions or departments. Secondly, technology deals with how an
organization produces the products and services for customers. These are the tools,
techniques, and actions used by an organization to transform inputs (raw materials) into outputs
(products). Adaptation of innovation is needed in this dimension to have flexible manufacturing,
advanced information systems, and the use of the Internet. Thirdly, environment are the
elements outside the boundary of an organization. It is the nature of external influences and
activities in the political (government), technical (industry), social (customers), and economic
(financial and suppliers) arenas. Fourth, the goals and strategies are the purpose and
competitive techniques that set it apart from other organizations. Goals are the overall priorities
and desired results of an organization, while Strategy is the determination of the basic long-term
goals of an enterprise, and the adoption of courses of action and the allocation of resources
necessary for carrying out these goals (Chandler, 1962). Lastly, culture is the underlying set of
key values, beliefs, understandings, and norms shared by employees. It may pertain to ethical
behavior, commitment to employees, efficiency, or customer service, and they provide the glue
to hold organization members together.

4. This can be defined as the determination of the basic long-term goals and objectives
of an enterprise, and the adoption of courses of action necessary for carrying out these
goals.
Strategy was defined as the determination of the basic long-term goals and objectives of
an enterprise, and the adoption of courses of action necessary for carrying out these goals. The
conventional definition of strategy is about the establishment of the core long-term goals of an
enterprise, the choosing of courses of action, and the allocation of resources essential for
carrying out these goals. The perspective on strategy indicated in this definition is applicable in

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times when it is possible to look forward and reasonably anticipate what will happen over the
next year or two, or preferably much longer so that three or five-year strategic plans can be
created.

5. This strategy tries to maintain a stable business while innovating on the periphery. It
seems to lie midway between the prospector and the defender.

Analyzer
Organizations in the analyzer category are capable of developing new technologies and
products as well as defending the market for those they have already formed. Furthermore, they
place equal emphasis on internal efficiency improvements and external innovation, and they are
concerned with minimizing risk while maximizing potential profit. This type of company will
usually sit back, monitor the market and its demands, and then try to fill those demands as
efficiently as possible. Finally, an analyzer retains current markets and customer satisfaction
while placing a moderate emphasis on innovation.

6. This evaluates the extent to which multiple goals—whether official or operative—are

attained.

Assessing organizational effectiveness

The concept of measuring organizational performance is broad. It takes into account a
number of criteria at both the organizational and departmental levels. It is difficult to quantify
organizational effectiveness. Organizations are enormous, diverse, and fragmented. They
engage out several tasks concurrently, seek diverse goals, and cause a range of results, some
intentional and others unplanned. Organizational effectiveness describes how successfully a
company achieves its goals. Assume a company's short-term goal is to increase its client base
by 10%. It can evaluate its success by calculating the proportion of new clients it acquired over
the specified time period. An organization's effectiveness explains how it gains self-awareness.

7. What is Porter’s Low-cost Leadership?

In cost leadership, a firm sets out to become the low-cost producer in its industry. The
sources of cost advantage are varied and depend on the structure of the industry. They may

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include the pursuit of economies of scale, proprietary technology, preferential access to raw
materials and other factors. A low-cost producer must find and exploit all sources of cost
advantage. If a firm can achieve and sustain overall cost leadership, then it will be an above
average performer in its industry, provided it can command prices at or near the industry
average. A company's capacity to reduce production costs in order to provide high-quality
products at competitive pricing is key to a cost leadership strategy. It works well for big
organizations with lots of purchasing power, but it works less well for smaller companies. Cost
leadership also is a business approach used by businesses looking to achieve a competitive
edge by producing goods, services, or processes at the lowest possible cost.

There are factors consider when you are going for Cost Leadership:

● How can you deliver your product at the lowest cost compared to your rivals?
● How will you reinvest the company's additional profits?
● What effects will the cost-cutting drive have on your clients and staff?
● Can you keep your position as the lowest price, or will your rivals overtake you?
● Will the customers receive any of the savings?
● Is it adaptable and maintainable?

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8. Illustrate and discuss your depiction of Organizational Design.

The establishment of roles, processes, and structures to ensure that the company's
goals may be accomplished is referred to as "organization design." It is a step-by-step technique
wherein it identifies the dysfunctional components of workflow, set of procedures, structures,
and systems, realigns them to match current business goals, and then produces strategies to
implement the new adjustments to the corporation. The method focuses on enhancing both the
technological and human aspects of the business.
As we depicted organizational design, we saw the process of dividing organizational
functions into different departments as per specializations of jobs or responsibilities so that the
common tasks can be handled by specialized teams or groups. Better coordination will surely
be evident in this as they keep them together by their specialization. With this system, the
business will lessen their problem because each team's specialization means if they encounter

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a problem within their group they can control it as they become familiar with what they're doing.
Thus, an organization regardless of how beautifully it is built, is only as good as the people who
live and work in it.

9. This means that all the organization’s energies and resources are directed toward a
focused, unifying, and compelling overall goal.

Strategic Intent
Strategic intent means that all the organization’s energies and resources are directed
toward a focused, unifying, and compelling overall goal. Strategic intent gives an idea of what
the organization desires to attain in future. It is extremely important for the future growth and
success of the enterprise. It answers the question of what the organization strives or stands for.
It indicates the long-term market position, which the organization desires to create or occupy
and the opportunity for exploring new possibilities. Strategic Intent is extremely important for the
future growth and success of the enterprise, irrespective of its size and nature.

For a real-world example of strategic intent, let’s look to Asia. Specifically, Japan and
Honda. Some time ago, Honda made the decision to enter the motorcycle market. But rather
than look to imitate Harley Davidson or Yamaha’s success, Honda chose to start with products
that were intentionally different. Honda’s competitors didn’t see Honda as a threat initially
because there was no encroachment on the core business. But by carving out new, white
space, Honda developed a loyal customer base and strong brand recognition. That allowed
Honda to attack competitors from a position of strength. A company that exhibits strategic intent
shows creative, outside the box thinking. Honda didn’t try to win market share using the proven
blueprint. Instead, they took a long term approach with a customized blueprint that ultimately
won more market share. Many consulting engagements often seek to inject strategic intent into
strategies that otherwise lack it.

10. This provides labels to describe the internal characteristics of an organization. They
create a basis for measuring and comparing organizations.

● Structural Dimensions
Labels for an organization's internal characteristics are provided by structural

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dimensions. They establish a framework for evaluating and contrasting organizations.

Internal organizational qualities that aid in defining and quantifying what is there when
compared to other organizations are referred to as structural dimensions. For instance,
"size" of personnel, sales, volume, etc., would represent a structural dimension.

Formalization
The term "formalization" refers to the written direction that job descriptions, policy
manuals, procedures, and the laws meant to regulate behavior, internal activities, and
expectations in the workplace provide. Formalization is often measured by simply
counting the number of pages of documentation within the organization. Naturally, the
more written content there is, the more formalized the structure is.

Specialization
The ratio of participants to tasks completed is known as specialization. There is
less specialization when a work is completed by one person, and more narrow
specialization when ten persons are required. Consider an insurance firm where each
task is handled by a single person, including evaluation, report submission, data entry
into a computer, claim validation, decision-making regarding next steps, and claim
payment.

Hierarchy of Authority
The flatness and speed of the organizational structure are directly tied to the
hierarchy of authority. While a taller, more layered organization with more management
levels will have a narrower span of control due to more levels of authority, a flatter
organization will have a shorter hierarchy and a larger range of control.

Centralization
Centralization is characterized by the degree of delegation of decision making
authority. Whereas low degrees of centralization means that employees have high
discretion over decisions; high degrees of centralization means that employees have
little discretion over decisions. A high degree of centralization means that there are few
decision makers in the organization.

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Professionalism
Professionalism refers to an employee's level of formal education and training.
When personnel must undergo extensive training in order to keep their positions within
the company, professionalism is deemed to be high. The typical length of employees'
schooling is used to gauge how professional they are.

Personnel Ratios
The distribution of people throughout distinct departments and functions is
referred to as personnel ratios. The administrative ratio, clerical ratio, professional staff
ratio, and the ratio of indirect to direct labor employees are all examples of personnel
ratios. A personnel ratio is calculated by dividing the total number of organizational
employees by the number of workers in a certain classification.

11. It characterizes the whole organization, including its size, technology, environment,
and goals. They describe the organizational setting that influences and shapes the
structural dimension.

Contextual dimensions characterize the whole organization and describe the

organizational setting and influences and shapes the structural dimensions. A collection of
overlapping components that define the structure and operational procedures of an organization
might be thought of as contextual dimensions. Structural dimension depends on the contextual
dimension of the organization. There are six forms that characterized the whole organization
that includes the size, technology, environment, goal and strategies and culture.
Size is the organization's magnitude as reflected in the number of people in the
organization. Organizational size is often determined by the number of employees because they
are social systems. Aside from that, it can also be measured by the number of branches that the
company has and the total sales or assets of the organization. Technology refers to the tools,
techniques, and actions used to transform inputs into outputs. These are the technologies that
the company employs in order to manufacture products and provide or deliver them to
customers. An advanced technology that the employees can use to do their work efficiently and
effectively. The environment includes all elements outside the boundaries of the organization.
Key elements include the industry, government, customers, suppliers, trading partners,
competitors, and financial community. Basically, this affects the organization. Businesses must

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be aware of the internal and external factors that may affect them in order to continue serving
their customers. Organizations must develop an environment that helps knowledge workers
deal with problem solving in light of the unpredictability and uncertainty of the future. Goals and
strategy define the purpose and competitive techniques that set it apart from other
organizations. Goals are often written down as an enduring statement of company intent. Goals
and strategy influence and shape the structure because this becomes the outline of the
organization to put the right employees in the right jobs so that they can easily achieve their
goals with the help of the people and by using the strategies that the company has. An
organization’s culture is the underlying set of key values, beliefs, understandings, and norms
shared by employees. This is to keep employees respectful of others inside the organization,
and employees are also the identity of the company.

12. This describes who reports to whom and the span of control for each manager. The
hierarchy is related to span of control (the number of employees reporting to a
supervisor).

Hierarchy of authority
As stated in the given definition, it is clearly stated that it is a hierarchy of authority. It is
simply because authority has power and rights, as well as the ability to act, and will report to
higher-ups such as managers. When we talk about hierarchy, it means that there are people in
the organization that are ranked or leveled in their authority or status in their system. For better
understanding, here is one example: The marketing consultant is the one who reports to the
marketing supervisor, who will then follow up with or report to the marketing manager. We can
clearly see the hierarchy of authority held by the control employees of managers as a result of
this. This will also help the businesses to make their employees follow because it shows a clear
authority and reporting within the business, and there is clarity when it comes to the roles and
duties of the employees. Also, this is under structural dimensions, where it provides labels for
internal components or characteristics that organizations have. This is also designed because it
is intended to be advantageous to employees and, of course, to the business.

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13. Refers to the tools, techniques, and actions used to transform inputs into outputs. It
concerns how the organization actually produces the products and services it provides
for customers.

The definition given above is for the term Technology. It is one of the Contextual
dimensions in an organization, and it is often the unique activities needed to reach
organizational goals, including nature of activities, specialization, type of equipment or facilities
needed, etc. It also includes the nature of the manufacturing system comprising operations and
procedures of the manufacturing process (transforming consumable items to manufacturing
items). (Daft, 1998, p. 32)

14. Discuss and provide practical application of Porter’s Five (5) Competitive Forces

● Threat of New Entrants

The threat of new entrants to established companies in an industry. It is one of
the factors that influences how a market is competitive and determines how appealing a
market is. Current businesses' capacity to turn a profit is significantly impacted by the
threat of new entrants. A company's competitive status will be at stake when new
competitors enter an industry offering the same goods or services. As a result, the
capacity of new businesses to enter a market is referred to as the threat of new entrants.
The Threat of New Entrants depends on the barriers to entry. The term "barriers"
refers to things like high prices or other challenges that could prevent new rivals from
joining a market. An industry is competitive when there is little threat from new
competitors since there are high barriers of entry. An industry loses appeal if there are
many potential competitors and low entry barriers. As a result, new competitors can
readily enter the market, compete with established companies, and gain market share.
As there are more businesses in the industry, the possibility for profit is decreased.

● Power of Suppliers
The power of suppliers can have an impact on many aspects of business. It can
raise or lower their products' prices, have lower or higher qualities, and the amount they
might produce always depends on their suppliers. That’s why the power of suppliers is
important when it comes to competitive forces because the suppliers have a greater

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impact on the businesses. This is also where business negotiations between suppliers
begin, and the supplier's terms and conditions emerge. Also, the power of suppliers
always depends on if they know that manufacturers or businesses have nothing to gain
because there is only the one who supplies that product. This is also the mirror of the
bargaining power of buyers.
For example, before the pandemic started, the price of face shields ranged from
100 to 150. Why? This is called a standard part of business strategy simply because the
power of suppliers is showing because these products are new to the market and the
suppliers of these products are few. Despite the fact that it is required when going
outside, consumers and buyers will purchase it. But when the time comes, where face
shields are optional and suppliers are wider, the price of the product decreases. To
conclude, the power of suppliers is strong because it affects the competitive environment
and profit potential of the buyers.

● Power of Buyers
The market of outputs is a metaphor for the buying power. This force examines
the degree to which consumers may exert pressure on the business, which influences
the consumers' responsiveness to price fluctuations. When there are few consumers and
there are numerous places for them to buy from, they are quite powerful. Additionally, it
should be simple for them to change companies. The internet has a significant influence
since it has enabled consumers to become more educated and, thus, more powerful.
Consumers may simply compare prices online, learn more about a wide range of items,
and instantaneously access offers from different businesses. For instance, if there are
more buyers than suppliers in the market, the demand for some things will outpace the
supply. When this is the case, suppliers may set a higher price for the product since
consumers would still be eager to purchase it. As a result, each consumer has a greater
ability to bargain for cheaper pricing and better terms due to a smaller and stronger
consumer base.

● Threats of Substitutes
The possibility of competing goods or services displacing a company's own
worries businesses. When competitors or businesses outside the sector provide items
that are more appealing and/or more affordable, there is a significant risk of substitution.

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The choice to trade off performance for money is thus available to buyers. Another
problem is switching costs. The threat of substitution is low if it is high. Substitutions can
occur if there are changes in price, quality, availability, social trends, or environmental
changes. Especially nowadays, many products increase their prices, and to be able to
buy the things they need within their budget, consumers find substitute products for
them. It can also be influenced by social trends; for example, when milk tea becomes
trendy, many people switch from coffee to milk tea. However, companies must also
minimize the risk of substitutes because the more buyers who substitute the product, the
more profit they lose. That’s why many businesses look for a unique marketing style that
makes the consumer choose their product. Businesses also need to identify why they
chose that product so that they can find a solution and avoid a big problem that they
might encounter in the future.

● Rivalry among Existing Competitors

The strength and number of your opponents or competitors within the industry
are examined in the fifth of Porter's Five Forces. The preceding influences rivalry
between competitors, as well as by the four forces, cost, and product differentiation. This
is also about your competitors' numbers, characteristics, and product-quality differences
with yours. Moreover, in the business sector, greater levels of competition may result in
cheaper prices for goods or services as well as the market profitability. The power of a
company decreases as the number of competitors and the number of comparable goods
and services they provide increases. If a competitor can provide a better deal or lower
rates, suppliers and customers will look to them. Some rivals tend to cut their prices in
order to turn a profit, which lowers market profitability. Which indicates that while they
are making money, it is insufficient to conclude that the organization is operating
effectively. On the other hand, when there is little competition, a corporation has more
negotiating power and can raise prices to boost sales and profits.

15. Compare and contrast Miles and Snow’s 4 Strategy Typology.

Similarities:
● Porter strategy and miles and snow typology have two things in common: differentiation
strategy and prospector strategy. It provides employees with learning opportunities; both
are flexible, and employees are required to innovate in order to provide service and

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generate a profit. The horizontal and decentralized communication structure is followed

by the differentiation and prospector strategies. The defender strategy is similar to the
low-cost leadership strategy in that it emphasizes effectiveness. Control is aided by both
a low-cost method and an analyzer strategy.
● Porter's and Miles and Snow's strategies are built on the idea of strategic lead to a set,
or the ability for businesses to succeed using various managerial approaches. A good
place to start is by giving the company's strengths priority over both its internal and
external sources of strength.

Differences:
● Porter's differentiation approach focuses on client satisfaction and loyalty. Customer
loyalty isn't given much weight in the miles and snow strategy. The Miles and Snow
reactor strategies do not have a distinct organization approach, however the Porter's
strategy does not have such an approach.
● Miles and Snow strategy is an organizational framework that assists businesses in
analyzing their current operations, defining their current strategy, achieving cost
leadership, and creating a positioning plan for the future. In Porter’s, strategy is
"deliberately choosing a different set of operations to create a unique mix of value" in
order to maintain a competitive position.

Rubrics:

Completeness and correctness of answer 25%

Clarity/comprehensiveness of the response/position 25%
Presentation of synthesis/content discussion 35%
Grammar and proper citation 15%
Total 100%

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