The firm‘s success depends not only on how well each department performs its work, but also on how well the activities of various departments are coordinated. Focus on Core Business Processes - Product development process - Inventory management process - Order-to-payment process - Customer service process Successful companies develop superior capabilities in managing these and other core processes. In turn, mastering core business processes gives these companies a substantial competitive edge.
Michael Porter's Competitive Advantage book describes the five competitive forces that determine the attractiveness of an industry and their underlying causes, as well as how these forces change over time and can be influenced through strategy. It identifies three broad generic strategies for achieving competitive advantage.
Porter's Value Chain is a strategic management framework that analyzes a company's activities to identify its competitive advantage. It consists of the primary activities directly involved in production and delivery and the support activities that allow primary activities to be executed. A value chain refers to the full lifecycle of a product or process, including material sourcing, production, consumption and disposal/recycling processes.”
The term ‚Margin' implies that organizations realize a profit margin that depends on their ability to manage the linkages between all activities in the value chain.
Value Chain - Identifying capabilities and competitive differentiators; - Output value > Cost value = Margin Drivers of Value Creation 1. Cost percentage 2. Relative cost compared to the competition 3. Factors influencing the cost 4. Sources of value differentiation 5. Value differentiation compared to the competition
The idea of the value chain is based on the process view of organisations, the idea of seeing a manufacturing (or service) organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources - money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits. Most organisations engage in hundreds, even thousands, of activities in the process of converting inputs to outputs. These activities can be classified generally as either primary or support activities that all businesses must undertake in some form. According to Porter (1985), the primary activities are: Inbound Logistics - involve relationships with suppliers and include all the activities required to receive, store, and disseminate inputs. Operations - are all the activities required to transform inputs into outputs (products and services). Outbound Logistics - include all the activities required to collect, store, and distribute the output. Marketing and Sales - activities inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase. Service - includes all the activities required to keep the product or service working effectively for the buyer after it is sold and delivered. Secondary activities are: Procurement - is the acquisition of inputs, or resources, for the firm. Human Resource management - consists of all activities involved in recruiting, hiring, training, developing, compensating and (if necessary) dismissing or laying off personnel. Technological Development - pertains to the equipment, hardware, software, procedures and technical knowledge brought to bear in the firm's transformation of inputs into outputs. Infrastructure - serves the company's needs and ties its various parts together, it consists of functions or departments such as accounting, legal, finance, planning, public affairs, government relations, quality assurance and general management.
شكرا جزيلا على كل الفيديوهات الرائعه والمفيدة.
محاضرة رائعة.
كنت ابحث عن الشرح لانه عندي اختبار في الجامعة وصلت المعلومة بسرعة.
مبدع استمر وبالتوفيق
Well explained.
The firm‘s success depends not only on how well each department performs
its work, but also on how well the activities of various departments are coordinated.
Focus on Core Business Processes
- Product development process
- Inventory management process
- Order-to-payment process
- Customer service process
Successful companies develop superior capabilities in managing these and other
core processes. In turn, mastering core business processes gives these
companies a substantial competitive edge.
Perfect
Michael Porter's Competitive Advantage book describes the five competitive forces that determine the attractiveness of an industry and their underlying causes, as well as how these forces change over time and can be influenced through strategy. It identifies three broad generic strategies for achieving competitive advantage.
Porter's Value Chain is a strategic management framework that analyzes a company's activities to identify its competitive advantage. It consists of the primary activities directly involved in production and delivery and the support activities that allow primary activities to be executed.
A value chain refers to the full lifecycle of a product or process, including material sourcing, production, consumption and disposal/recycling processes.”
The only one who explained the margin for me. Honestly, I asked our uni doctor and he didn't explain it well.
The term ‚Margin' implies that organizations realize a profit margin that depends on their ability to manage the linkages between all activities in the value chain.
Value Chain
- Identifying capabilities and competitive differentiators;
- Output value > Cost value = Margin
Drivers of Value Creation
1. Cost percentage
2. Relative cost compared to the competition
3. Factors influencing the cost
4. Sources of value differentiation
5. Value differentiation compared to the competition
The idea of the value chain is based on the process view of organisations, the idea of seeing a manufacturing (or service) organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources - money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.
Most organisations engage in hundreds, even thousands, of activities in the process of converting inputs to outputs. These activities can be classified generally as either primary or support activities that all businesses must undertake in some form.
According to Porter (1985), the primary activities are:
Inbound Logistics - involve relationships with suppliers and include all the activities required to receive, store, and disseminate inputs.
Operations - are all the activities required to transform inputs into outputs (products and services).
Outbound Logistics - include all the activities required to collect, store, and distribute the output.
Marketing and Sales - activities inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase.
Service - includes all the activities required to keep the product or service working effectively for the buyer after it is sold and delivered.
Secondary activities are:
Procurement - is the acquisition of inputs, or resources, for the firm.
Human Resource management - consists of all activities involved in recruiting, hiring, training, developing, compensating and (if necessary) dismissing or laying off personnel.
Technological Development - pertains to the equipment, hardware, software, procedures and technical knowledge brought to bear in the firm's transformation of inputs into outputs.
Infrastructure - serves the company's needs and ties its various parts together, it consists of functions or departments such as accounting, legal, finance, planning, public affairs, government relations, quality assurance and general management.
من طرائف الكاتب الأيرلندي الساخر جورج برنارد شو :
"لحيتي كثِيفة ورأسِي أصلَع، كالاقتصاد العالميّ ؛ غزارةٌ في الإنتاج وسوءٌ في التّوزيع