Lecture 3 - Chapter 6 Flashcards
(26 cards)
what is internal analysis used for?
it is used to find out the strengths and weaknesses of an organisation
what are critical success factors (CSF’s)?
they are a nu bet of small key goals that are vital to the success of an organisation, they also help organisations find out how attainable it is achieving their set goals with he resources they have.
what are threshold resources?
threshold resources are resources that are needed by all firms in the market
what are unique resources?
unique resources are resources that are harder to replicate often given the firm that has them a competitive advantage,
what is included in the 9M model when carrying out a resource audit?
-men
-machine
-material
-markets
-make-up
-money
-management
-methods
-MIS
Human capital?
Considers the collective attribute of an organisations human resources.
an organisations workforce can be a unique resources and many organisations develop programmes to specifically enhance….
the value attained from their workforce.
what are examples of an organisation enhances the value of their Human Resources?
-Education and training
-allowing creativity
-infrastucture
-recognising the intellectual property
-motivation
-competition
-participation in activities
Technological resources?
technology is a resource in many different ways which if used correctly can enhance a company’s processes and improve profit margins. However, if not used correctly it can also damage a company’s reputation.
what are core competencies?
core competencies are critical activities and processes which enable firms to achieve their CSF’s.
what are the three main sources of competencies according to the Kay’s model?
-Reputation: the reason that customers are attracted to the organisation.
-competitive architecture: the network relationships within and around a business.
-innovative ability: the ability to provide and create unique goods and resources.
according to the Kay’s model, what are the three types of competitive architecture?
-Internal architecture: Relationships with employees
-external architecture: Relationships with suppliers, customers and intermediaries.
-network architecture: Relationships with collaborating businesses.
what is a value chain?
identifies the relationships between a company’s resources that link a company together and creates a profit margin
how is the value measured?
the cost of the activities minus the sales revenue
what is the two starting point for a value chain analysis?
-Cost leadership
-Differentiation
Cost driver?
a cost driver is a factor that causes costs to be incurred
value driver?
Potential sources of value, there are important for differentiators that are trying to generate quality advantages.
what are primary activities?
those that create value and are directly concerned with providing a product or a service.
what are the process of primary activities?
-inbound logistics: focuses on acquiring and storing inputs
-operations: focuses into converting inputs into ready made products.
-Outbound logistics: focuses more on distributing the product
-Marketing and sales - focuses on informing customers about the products.
- Services: after sales, providing services such as installation.
what are support activities?
those activities that do not create value themselves but focus on enabling the primary activity to function effectively.
what are examples of support activities?
-procurement: focuses on acquiring various input resources.
-Tech development: all value activities have a tech content.
- Human resource management: all areas that involve recruiting, managing and training people.
-infrastructure: refers to the system of planning
what is a linkage?
linkages are where two or more activities are linked and impact each other
two types of linkages?
-Co-ordination: Activities should co-ordinate with each other to support the generic strategy
-Optimisation: Strengths in one area may enable the firm to commit fewer resources into another area.
how to strenghten a value chain?
-Outsourcing
-Automation
-Shared service centres
