APPENDIX: 1 of x 2 nd Semester Computer Science AP, Project Report. Rias - Generic Strategies analysis: Fig

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1 1 of x 2 nd Semester Computer Science AP, Project Report. APPENDIX: Rias - Generic Strategies analysis: Fig Rias fits into low cost/broad scope with their main plastic assortment. But they have branches heading towards high cost/broad scope with their RIPRO department, where the costs are in the higher end, of the low costs. However Rias is a big company with solid departments that makes them able to take on tasks of any scope. This means they are placed a bit in all the boxes and their focus point depends on what product their costumer needs. Rias Value Chain analysis:

2 2 of x 2 nd Semester Computer Science AP, Project Report. At this level we will try to describe the company s activities by using Porter s value chain analysis model. A chain of activities consists of support activities and primary activities. Supporting activities contain four phases, which are firm infrastructure, human resource management and procurement. Primary activities contain five phases, which can be read as a step-by-step process. They are inbound logistics, operations, outbound logistics, marketing & sales and service. The supporting activities are going to back up the primary activities. Firm infrastructure: The company has many departments, and the company has many common rules. At Rias they have following departments, Machining of plastics, construction, Industrial and Visual, Logistics Managing. Human Resource Management: For each department they have trained people, and they use resources to development the employee. Each of the departments have a leader, and the leader have their own employees. Technology: The company is using the SAP ERP system to manages the company, and links into the rest of the Thyssenkrupp companies aswell. The implementation of SAP means they have to train employees in using it. Procurement:

3 3 of x 2 nd Semester Computer Science AP, Project Report. The company have a technical department that handles procurement of materials for optimal prices. Payments happen using a PayPal system to pay their goods, which will save costs on converting currency, and make a report in the end. Rias has their own buildings in Roskilde and Herning, which means they don t need to rent any buildings. Inbound logistics: Rias receives goods from suppliers, and stores goods in their warehouse using IT and machines. Company has more than 50 suppliers, but they have only 2 main supplies. They are expecting to find more suppliers in China. The Rias company attempts to use the Just in time method of storing materials, meaning they want to have as little actual products in their warehouse as possible and therefore liquify as little resources as possible. Operations: When the goods arrive they are either stored in the warehouse or sent for processing at RIPRO, Or construction. When the items are returned to the warehouse, they are either packed for outbound logistics, or await pickup by the customer at the warehouse itself. Outbound logistics: Rias uses Danske fragtmænd as transporters of their goods to companies such as, STARK and XXL byg. Marketing and sales: Rias has a sales department which handles claims, sales and customer service. And an accounting department which handles accounting. Rias SWOT Analysis:

4 4 of x 2 nd Semester Computer Science AP, Project Report. SWOT of RIAS Strength : The fact that there is almost no limit to what they can manufacture in plastic. They have a very broad company structure, which means that they have capital backup in crisis situations and they have big production abilities in form of many sister companies and a large mother company. Low stock means that if a order is canceled they do not end up with a big amount of products that they cannot use. Weakness : Expensive stock means that they have to keep a low amount of their stock in the warehouse in order to have a high turn rate, but that means that if a customer orders a special order, the delivery time is extended until the stock is filled up. They have no real claim system, which makes handling claims from their customers a slow, time and resource consuming process. Opportunity:

5 5 of x 2 nd Semester Computer Science AP, Project Report. They have a lot of customer contact so they have a very good idea of which way the market is moving because they act as consultants, sharing their plast expertise. Their customers range from a normal handy-man to a big construction company and from a medicinal company to an assembly line builder. Expand to other nordic and Scandinavian countries since there is a lack of presence there, by the Thyssenkrupp organization, a chance to compete on other markets. Outsource own workshop jobs elsewhere for lower cost. Invest in expanding the production. To account for possible increase in size when expanding to new countries. RIAS has a very broad market with their products and production. Threats : SAP breaks down Factories burn, increasing the cost of plastic material greatly across Europe. Rias Porters Five Forces. Threat of new entry: It requires alot of expensive machines to enter into the plastic processing industry. Rias have alot of partnerships already in place with both suppliers and retailers planned months ahead of

6 6 of x 2 nd Semester Computer Science AP, Project Report. time leaving fewer options for new companies break in, with a better offer. Power of suppliers: There is a large amount of buyers in the plast industry, be it people looking to process the plastic or resell it. And only a few factories which produce the base material. Rias is looking to process and resell. Power of buyers: There is a lot of people supplying plastic materials around the world for construction and other purposes, and therefore its easy for costumers to bargain with the price since if one company ex. Thyssenkrupp wont agree then they can just choose another of the hundred companies in Denmark alone. Hence, the suppliers dont have alot of power, they have to meet the buyers requirements. Which is likely how the RIPRO department got started, to meet buyer demands. Threat of substitute products: Is not an issue in Rias, because they are only a distribution and costumization company, so they can just find whatever product material their customer needs and change it into their requirements. Though their specialized in plastic they also have aluminium products. The company is so much into the market that they adapt to the needs and change their products accordingly.

7 7 of x 2 nd Semester Computer Science AP, Project Report.

8 8 of x 2 nd Semester Computer Science AP, Project Report.

9 9 of x 2 nd Semester Computer Science AP, Project Report.