Chapter 2 Flashcards
(38 cards)
What is a “Value Chain” according to Michael Porter?
A concept that describes a company as a set of building blocks, each essential for creating value and gaining a competitive advantage.
What are “Primary Business Activities” in the value chain?
They are the main functions directly involved in producing and delivering goods/services, including inbound logistics, operations, outbound logistics, marketing and sales, and service.
What is the role of “Inbound Logistics” in a company?
It involves sourcing raw materials, storing, and managing inputs needed for production.
Define “Operations” in the context of a value chain
The function that converts inputs into finished products or services.
What does “Outbound Logistics” encompass?
Storage, shipment, and delivery of goods to customers, adding value to the business.
How do “Marketing and Sales” contribute to a company’s value?
They create awareness and promote products through advertisements, promotions, and customer outreach.
What is the purpose of the “Service” function?
Ensures quality after-sales support, handling returns, repairs, and customer inquiries.
What are “Support Business Activities” in the value chain?
Activities that support primary functions, including procurement, HR management, technology, and company infrastructure.
What does “Procurement” involve in the support activities?
Purchasing raw materials and supplies essential for company operations.
What is “Human Resource Management” (HRM) in a company?
Managing workforce activities like hiring, training, compensation, and staff termination.
Describe the “Technology” support function.
Provides necessary computer hardware, software, and technical expertise for company operations and customer connectivity.
What does “Company Infrastructure” refer to?
It includes management tasks like financing, long-term planning, legal issues, and managing external relationships.
What is the impact of digitalization on the value chain?
Digitalization transforms various company activities, enhancing functions like logistics, operations, and customer service through digital tools.
How did the Share Now app demonstrate digitalization in the value chain?
It allowed customers to book, return cars, and make payments via smartphones, showing digital transformation in car rentals.
What is McPhee and Wheeler’s proposed value-added chain model?
It includes a wider range of business activities and redefines value to include brand, reputation, and relationship-based value drivers.
What does “value-added chain” mean?
Ensuring that customers receive extra benefits in exchange for payments by analyzing and removing inefficiencies across the value chain.
How does Apple add value at each stage of its value chain?
By managing high-quality inbound logistics, low-cost operations, an omnichannel approach for sales, strong marketing, and high-quality after-sales service.
What is Apple’s approach to inbound logistics?
Apple has a global network of suppliers to ensure top-quality logistics.
Define “Omnichannel Strategy.”
Selling products online and in physical stores to maintain high profit margins.
How does Apple’s investment in technology add value?
By using advanced technology, Apple differentiates itself and strengthens its brand.
What is “Lean Management”?
A systematic approach to enhance operational efficiency by eliminating non-value-added activities and increasing profitability.
List Toyota’s five principles of lean management.
Product value, value stream, flow of products, pull/demand production, and excellence.
What does the “value stream” principle involve?
Mapping activities in the supply chain, production, marketing, etc., to identify where value is added.
Describe the “flow of products” principle.
It emphasizes eliminating waste and delays, ensuring an uninterrupted production process.
