Strat 5

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Strat 5
2013-07-14 13:59:22

Strat 5
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  1. Value
    • -measured by: product/service performance characteristics, products attributes for which customers are willing to pay
    • -business is about creating value
    • -create value by innovatively bundling and leveraging their resources and capabilities
  2. Tangible Resources
    • -Financial Resources
    • -Org. Resources
    • -Physical Resources
    • -Technological Resources
  3. Intangible Resources
    • -Human Resources:knowledge, trust
    • -Innovation Resources: ideas
    • -Reputational Resources: brand name, reputation with customers
  4. Firm Capabilities
    • -R&D
    • -Operation/manufacturing/engineering
    • -marketing/services
    • -Accounting/Financing
    • -HRM
    • -Strategic management
    • *capabilities are the capacity to transform resources*
  5. Value Chain Analysis
    • Put resources and capabilities into actions: resources-capabilities-actions
    • -identify core competencies
    • -activities are the process of applying capabilities to resources to create value
  6. Primary Activities
    create a specific product or services that will be consumed by consumers: products physical creation, sale+distribution to  buyers, service after the sale
  7. Support Activities
    • provide support necessary for primary activities to take place, not directly product or service related.
    • *activities that are primary in one business can be supportive in another*
  8. Inbound Logistics
    activities used to receive, store, and disseminate inputs to a product (material handling, warehousing, inventory control)
  9. Operations
    activities necessary to convert the inputs provided by inbound logistics into final product form (machining, packaging, assembly)
  10. Outbound Logistics
    activities involved with collecting, storing, and physically distributing the product to customers (finished goods warehousing, order processing)
  11. Marketing and Sales
    reach the customers (advertising, promotion, distribution channels)
  12. Service
    activities designed to enhance or maintain a product's value (repair, training, adjustment)
  13. Procurement
    activities completed to purchase the inputs needed to produce a firm's products (raw materials, machines, lab equipment)
  14. Technological Development
    activities completed to improve a firm's product and the processes used to manufacture it (process equipment, basic research, product design)
  15. HRM
    activities involved with recruiting, hiring, training, developing, and compensating personnel
  16. Building Firm Infrastructure
    • activities that support the work of the entire value chain (general management, planning, finance, accounting, legal, govt. relations)
    • -effectively+consistently identify external opportunities and threats
    • -identify resources and capabilities
    • -support core competencies
  17. Differences in Business Competition
    • -firms possess different types and amount of resources
    • -firms have different capacity in combining these resources, or capabilities
    • -firms have different processes in integrating capabilities and resources
  18. Summary: Businesses are different in:
    • 1)Resources
    • 2)capabilities
    • 3)internal processes that integrate resources and capabilities to create value (value chains)
  19. Business Model
    • describes the rationale of how an organization creates, delivers, and captures value.
    • (Economic, social, cultural, or other forms of value)