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Bargaining power of
Buyers
BUYERS
INDUSTRY
COMPETITIORS
(Rivalry among
existing firms)
Threats of substitutes
products or services
SUBSTITUTES
SUPPLIER
Bargaining
power of
Suppliers
HOW TO DO????
Identify the Problem
Identify Possible
Causes
Analyze Your
Diagram
EXAMPLE
The law of the vital few, and the principle of factor sparsity
Specifies an unequal relationship between inputs and outputs
Most things in life are not distributed evenly
Roughly 80% of the effects from 20% of the causes
Total need not add up to 100
ISSUES CALCULATIONS
Frequency Weight (%)
Pilots
Stewards
Groundmen
Technicians
5
200
120
100
60
30
20
10
Total
3
20
24
10
120
200
100
5
20
10
10
60
100%
24
20
10
3
57
0.42
0.35
0.18
0.05
42
77
95
100
Stewards
Groundmen
Pilots
Job Functions
QUESTIONS?
THANK YOU