Week 1 - 1 Flashcards
(30 cards)
Order qualifiers
Characteristics of a product that are required for it to be even considered by a customer.
Order winners
Characteristics of a product that are directly contributing to winning business from a customer.
Competitive Advantage
Name 5
Cost Quality Flexibility Dependability Speed
Cost
The ability to provide a product or service at a price the customer is willing to pay.
(cost of distribution/production)
Quality
The ability to provide products or service that meets customer´s expectations.
Flexibility
The ability to change a product or service to meet customer’s needs.
Dependability
The ability of an organization to consistently meet its promises to the customer.
Speed
The ability to provide products or services with as short a time delay as possible between customer order and delivery.
Profit margin.
Value that´s created and captured by a company
Value Created & Captured - Cost of Creating that value = Profit Margin
Porter´s Value Chain
A chain of activities common to all businesses divided them into primary and support activities
Primary activities
Primary activities relate directly to the physical creation, sale, maintenance and support of a product or service
Primary activities
Name 5
Inbound logistics Operations Outbound logistics Marketing and sales Service
Inbound logistics
All the processes related to receiving, storing, and distributing inputs internally. Your supplier relationships are a key factor in creating value here.
Operations
The transformation activities that change inputs that are sold to customers.
Outbound logistics
These activities deliver your products or service to your customer. E.G collection, storage, distribution systems, and they may be internal or external to the organisation
Marketing and sales
All the processes you use to persuade clients to purchase from you instead of your competitors. The benefit you offer, and how well you communicate them, are sources of value here.
Service
These are the activities related to maintaining the value of your product or service to your customers, once it´s been purchased
Support activities
Each support Activity playa role in helping the primary activity
Support activities
Name 4
Procurement (Purchasing)
Human resource management
Technological development
Infrastructure
Procurement (Purchasing)
What the organization does to get the resources it needs to operate. This includes finding suppliers and negotiating the best prices.
Human resource management
How well a company recruits, hires, trains, motivates, rewards, and retains its workers. People are a significant source of value, so businesses can create a clear advantage with good HR practices.
Technological development
Activities that relate to reducing(information) Technology cost, increasing efficiency, staying current with technological advances, and achieving technical excellence are sources of value creation. (R&D)
Infrastructure
These are a company´s support systems, and the functions that allow it to maintain daily operations. Accounting, legal administrative, and general management are examples of necessary infrastructure that businesses can use to their advantage.
Using the value chain
Step 1. Identify sub activities for each primary activity.
Step 2. Identify subactivities for each support activity
Step 3. Identify Risks