LU2 Flashcards
(42 cards)
Value that’s created and captured by the company is the XXX XXX.
Value that’s created and captured by the company is the XPROFIT MARGINX.
Competitive strategy is:
A firm’s competitive strategy concerns how to
compete in the business areas in which the firm operates.
Competitive strategy means to XXX how the firm intends to create and maintain a XXX XXX with respect to competitors.
Competitive strategy means to XDEFINEX how the firm intends to create and maintain a XCOMPETITIVE ADVANTAGEX with respect to its competitors.
Value chain is:
A set of activities that an organisation carries out to create value for its customers. Porter proposes a general-purpose value chain that
companies can use to examine all of their activities.
Primary activities (Porter’s Value Chain):
They relate directly to the physical creation, sales, maintenance and
support of a product or a service.
Primary activities (Porters Value Chain) in terms of activities/processes:
- Inbound logistics: processes related to receiving storing and distributing inputs internally.
Key factor: supplier relationships - Operations: activities that change inputs into outputs that are sold to customers.
Operational system: creates value - Outbound logistics: delivery of product to the customer, such as collection,
storage and distribution (internal & external to the company) - Marketing and sales: persuade clients to purchase from you instead of competitors; benefits & how you communicate them= sources of value
- Service: activities related to maintaining value of your product/service to your
customers, once purchased
Support activities (Porter’s Value Chain):
They support the aforementioned primary functions.
Support activities (Porter’s Value Chain) in terms of activities/processes:
- Procurement (purchasing): what the organisation does to get the resources needed; e.g., finding best prices
- HR management: recruits, hire, etc.
- Technological development: managing and processing information & protecting company’s knowledge base
- Infrastructure: support systems and functions that allow it to maintain daily operations; e.g., accounting, legal, administrative and general management
The Business Value Chain highlights:
Specific activities in the business where
competitive strategies can be best applied and where information systems are most likely to have a strategic impact.
Also used for benchmarking
Benchmarking involves:
Comparing the efficiency and effectiveness
of your business processes against strict standards and then measuring performance against those standards.
The Industry Value Chain encouragers you to:
To think about how
to use information systems to link up more efficiently with your
suppliers, strategic partners, and customers.
Example Amazon:
You want to build systems that:
• Make it easy for suppliers to display goods and open stores on the Amazon
site
• Make it easy for customers to pay for goods
• Develop systems that coordinate the shipment of goods to customers
• Develop shipment tracking systems for customers
Value Webs are:
Highly synchronised industry value chains
A XXX XXX is a collection of independent firms that use information technology
to coordinate their XXX XXX to produce a product or service for a market
collectively. => customer driven & less linear fashion than traditional value chain
A XVALUE WEBX is a collection of independent firms that use information technology
to coordinate their XVALUE CHAINX to produce a product or service for a market
collectively. => customer driven & less linear fashion than traditional value chain
Project Management Triangle:
It is used by managers to analyse or understand the difficulties that may arise due
to implementing and executing a project.
Three constraints of the Project Management Triangle:
Time, scope and costs.
(Quality is not part of the project management
triangle, but it is the ultimate objective of every
delivery)
Six stages of Project Management:
- Project Definition -
This refers to defining
the objectives and the factors to be considered
to make the project successful. - Project Initiation -
This refers to the resources as well as the planning before
the project starts. - Project Planning - Outlines the plan as to how the project should be executed.
This is where project management triangle is essential. It looks at the time, cost
and scope of the project. - Project Execution - Undertaking work to deliver the outcome of the project.
- Project Monitoring & Control -
Taking necessary measures, so that the
operation of the project runs smoothly. - Project Closure-
Acceptance of the deliverables and discontinuing resources
that were required to run the project.
A competitive advantage refers to:
Factors that allow a company to produce goods
or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.
Porter’s competitive forces model:
It provides a general fire of the firm, its
competitors, and the firm’s environment and the dependence of firms on environments.
The model helps understanding the competitive advantage.
The XXX XXX XXX shape the fate of the firm.
The XFIVE COMPETITIVE FORCESX shape the fate of the firm.
The 5 competitive forces:
Traditional competitors
New market entrants
Substitute products and services
Customers
Suppliers
Traditional competitors (5 competitive forces):
All firms share market space with other competitors,
who are continuously devising new, more efficient ways to produce by introducing
new products and services => attract customers
New market entrants (5 competitive forces):
- In some markets it is cheaper or more expensive to enter
- New companies bring young workforce, HUNGRIER (more highly motivated)
than traditional occupants of an industry - New companies depend on outside financing for new plants and equipment
which is expensive - Less experienced workforce
- Little brand recognition
Substitute products and services (5 competitive forces):
- New technologies create new substitutes all the time (ethanol can substitute for gasoline in cars)
- The more substitute products and services in your industry, the less you can control pricing and the lower your profit margin
Customers (5 competitive forces):
- A profitable company depends in large measure on its ability to attract and
retain customers - Product differentiation (on internet you can see exactly)
