3. Value chain analysis
• A business may be seen chain of activities that transform inputs into
outputs that create customer value.
• Value chain represents the internal activities a firm engages in when
transforming inputs into outputs.
4. Activities in value chain
primary Activities
( Inbound logistics , Operations, Outbound logistics, Marketing and
sales, Service)
Supporting Activities
(procurement, Technological development, Human resource
management, Firm infrastructure)
5. Process of Value Chain Analysis
Identification of activities
Allocation of cost
Identification of the activities that differentiates of firm
Evaluation of value chain
6. Cost Efficiency Analysis
• cost efficiency is the utilization of organization resource in such a way
that the overall cost are minimized without compromising in the
quality.
• Its benefits the customers in terms of lower prices or more product
features for the same prices.
7. Effectiveness Analysis
• Under this analysis, product feature or effective analysis is also
included. Its is known as product effectiveness analysis.
• The main objective is to enhance product effectiveness by matching
customer requirement and product features.
• Under effectiveness analysis, the following considerations are made:
Customer requirement
Value added by organization
Degree of matching
8. Comparative Analysis
• Comparative analysis involves the comparison of capability of an
organization with the competitors as well as comparison of the
present performance of an organization with its part performance.
• Its helps to analyse the strength and weakness and prepare an
organization for exploitation of opportunity and migration of threat.
• Techniques of comparative analysis are:
Historical analysis
Industry standard
Benchmarking
9. Resource based view of strategy (RBV)
Internal Environment
• Model that evolved in 80’s and 90’s.
• Focused to achieve competitive advantage.
• Approach to evaluate performance of organization.
10. Resources
• All assets and capabilities(tangible and non-tangible).
• Strengths that firm can used to.
• Operated and controlled by firms
11. Tangible Assets Non-Tangible Assets
• Physical things No physical presence
• Land, buildings, equipment, capital Brand reputation
trademarks, intellectual property
• Easy to bought Can not buy from the market
16. • Competitive advantage:
• -Manufacture goods and services with product differentiation in better cost
than its rivals.
• -organization seeks favorable position to achieve more profit than its rivals.
• Competency:
• -ability to do something successfully.
• -skills requirements to perform something.
• -helps organization to achieve competitive advantage.
• Eg; skill requirements of singers voice quality, good memory, self
confidence, ability to deal with criticism.
18. • competitive advantage refers to advantage over the
competitor.
A competitive advantage as a value- creating strategy .
Achieved only when competitors cannot duplicate .
19. Four Attributes
• Valuable
• Give value to the organization.
• Rare
• Different from other.
• Non-substitutability
• Unique
• Costly to imitate
• Unique location
• Path dependency
• Causal ambiguity
• Social complexity
21. Elements of Knowledge Management
• Knowledge Creation and Capture
• Knowledge Sharing and Enrichment
• Information Storage and Retrieval
• Knowledge Dissemination
22. Why do we have to manage knowledge?
• Marketplaces are increasingly competitive and the rate of innovation
is rising.
• Competitive pressures reduce the size of the work force that holds
valuable business knowledge.
• Early retirements and increasing mobility of the work force lead to
loss of knowledge.
• There is a need to manage increasing complexity as small operating
companies are transnational sourcing operations.
• Changes in strategic direction may result in the loss of knowledge in a
specific area.
