Additional Videos Week 2: Value Chain analysis & Core competences

Question 1

What is a value chain?

Answer 1

Value Chain provides inside out perspective on core activities of the single-business firms. It allows exploration of synergetic and dyssynergetic interlinkages across all activities in the organizational system. It assesses how different parts of the firm are interlinked to create value

Question 2

Name the five primary activities of the organization in a value chain analysis?

Answer 2

1. Inbound logistics
2. Operations
3. Outbound logistics
4. Marketing & Sales
5. Service

Question 3

What is meant with inbound logistics in VCA?

Answer 3

Delivery of high-quality inputs

Question 4

What is meant with operations in VCA?

Answer 4

Execution against quality and efficiency standards

Question 5

What is meant with outbound logistics in a VCA?

Answer 5

Deliver on-time, securely and against low costs

Question 6

What is meant with Marketing & Sales in a VCA?

Answer 6

Ensure demand for firm’s products or services

Question 7

What is meant with service in a VCA?

Answer 7

Improve customer satisfaction and remedy issues fast

Question 8

What are the four support activities in a value chain analysis?

Answer 8

1. Firm infrastructure
2. Human resource management
3. Technology Management
4. Procurement

Question 9

What is a firm’s infrastructure in a VCA?

Answer 9

Providing physical and informational work context

Question 10

What is a HRM in a VCA?

Answer 10

Recruitment and retention of human capital

Question 11

What is technology management in a VCA?

Answer 11

Keeping a firm’s product portfolio in line with changing demands

Question 12

What is procurement in a VCA?

Answer 12

Unlocking value contained in suppliers

Question 13

How does a VCA give insights into strategic positioning?

Answer 13

Both primary and support activities must be aligned in order to generate a margin by creating solid strategic position

Question 14

What is the definition of primary activities in a value chain?

Answer 14

These are the core transformation processes of the single-business firm.

Question 15

What is the definition of support activities in a value chain?

Answer 15

Support activities facilitate these core transformation processes of the single-business firm

Question 16

Name three use cases of value chain analyses?

Answer 16

1. Identify competitive advantages
2. Find operational bottlenecks
3. Trace sources of social costs

Question 17

How can a VCA help identify competitive advantages?

Answer 17

• Companies review value chain to identify pockets of competitive advantage:
• Which activities do we perform way better than competitors
• How crucial is it to keep other activities in-house

Question 18

How can a VCA help find operational bottlenecks?

Answer 18

• Where are we lagging our competitors?
• Which areas should be prioritized for strategic action?

Question 19

What is the take of the core competences model on competitive advantages

Answer 19

Core competence model embraces inside-out perspective on competitive advantage.

Question 19

How can a VCA help trace sources of social costs?

Answer 19

3. Trace sources of social costs
   - Which activities generate the greatest social costs?
   - What can we do to alleviate these costs?

Question 20

What are core competencies?

Answer 20

ore competencies are knowledge-based resources that:
1. Provide access to many markets
2. Contribute to perceived customer benefits of the end product
3. Are difficult to imitate by competitors

Question 21

Name the three components of the core competence model?

Answer 21

Core competence  Core products  Businesses

Examples of core competencies: design, corporate culture, partnership ability, speed of operations etc.

Question 22

Name five characteristics of a conglomerate corporation model?

Answer 22

1. Basis of competition reduced to competitiveness of each product in portfolio
2. Structure of corporation is portfolio of businesses, divided into product-market combinations
3. SBU’s are autonomous
4. Capital and resources allocated on business-by business bases
5. Management aims to optimize returns from the internal capital market

Question 23

Name five characteristics of the core competence model?

Answer 23

1. Basis of competition is interfirm competition to build stronger core competencies
2. Structure of corporation is portfolio of core competencies, which result in product-market combinations
3. Business units are seen as repository of learnings and experiences, feeding back into competencies
4. Capita and talent allocated towards maintenance and improvement of competencies
5. Management aims to maximize competence-based advantages

Question 24

Name four considerations of the core competence driven firm?

Answer 24

1. Relative performance is what matters (what do you do better than rivals) 2. Core competencies erode fast 3. Limiting number of competencies (3 is maximum for most firms) 4. Appropriation is key (VRIM framework)