Miniature Guide to Critical Thinking: Concepts and Tools.

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Porter’s five forces model is used as part of the industry analysis completed in this workshop and the ADP. Refer to the form illustrated in Figure 1. The aim is to determine an organization’s competitive advantage compared to its competitors. Assessing the competition in the industry, determining the potential of new entrants, the power of the suppliers and customers, and the threat of substitutes enables an organization to continually reassess its strategy. Additional areas addressed in this week’s industry analysis are rivalry intensity, economies of scale, and distribution channels. The latter has been of interest post-pandemic. The process is crucial “because an optimized supply chain results in lower costs and a more efficient production cycle. Companies seek to improve their supply chains so they can reduce their costs and remain competitive” (Hayes, 2022, para. 2).

 

Read the Miniature Guide to Critical Thinking: Concepts and Tools.
Review Chapter 6 Mechanics of Style in the APA Style Manual 7e.

Conduct research to locate the most current, relevant information on how automation is taking jobs from the employee industry.
Complete industry analysis for each content area in the ADP Industry Analysis form once the data has been collected.

 

Sample Solution

Industry: Employee Industry (Focus on impact of automation)

Date: 2024-03-08

Analyst: (Your Name)

1. Competitive Advantage

Within the employee industry, the “competition” refers to different methods of fulfilling workforce needs. Automation is a growing competitor to traditional human labor in many sectors.

2. Threat of New Entrants

The barrier to entry for new automation technologies is constantly decreasing due to advancements in artificial intelligence, robotics, and software development. This makes the threat of new entrants in the automation sector quite high.

3. Bargaining Power of Suppliers

The bargaining power of suppliers in the automation sector depends on the specific technology. For established technologies with numerous vendors, suppliers might have less power. However, for cutting-edge or specialized automation solutions, suppliers might hold significant leverage.

4. Bargaining Power of Customers

The bargaining power of customers in the employee industry (businesses seeking to automate tasks) is likely moderate. While some businesses have budget constraints, the potential cost savings and efficiency gains from automation can incentivize them to invest, even if they have some negotiating power with vendors.

5. Threat of Substitutes

The threat of substitutes in the automation sector depends on the specific task being automated. For well-defined, repetitive tasks, there might be a high threat of substitution by newer, more efficient automation solutions. However, for complex tasks requiring human judgment and creativity, the threat of substitution is currently lower.

6. Rivalry Intensity

The rivalry intensity among automation companies is likely high due to the rapid pace of innovation and the potential for significant market share gains. Companies are constantly developing new technologies and vying for customer contracts.

7. Economies of Scale

Economies of scale can be significant in the automation sector. As production volumes increase for automation technologies, the cost per unit decreases, making automation more attractive for businesses.

8. Distribution Channels

The distribution channels for automation solutions are evolving. Traditional methods like direct sales and partnerships with technology consultancies remain important. However, online marketplaces and subscription-based models are gaining traction, particularly for software-based automation solutions. The COVID-19 pandemic has also accelerated the adoption of remote implementation and support for automation technologies.

9. Impact of Recent Events

The COVID-19 pandemic has had a significant impact on the employee industry. The need for social distancing and remote work has accelerated the adoption of automation solutions in various sectors. Automation technologies are being used for tasks like customer service, data entry, and logistics, potentially displacing some human workers.

10. Conclusion

Automation is a powerful force transforming the employee industry. While it creates new jobs in areas like development, implementation, and maintenance of automated systems, it also displaces workers in tasks that can be readily automated. Companies need to be aware of both the opportunities and challenges presented by automation to develop strategies for a future workforce that leverages both human and technological capabilities.

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