C3 Value Chain

Question 1

Porter’s Value chain

Answer 1

Provides a framework for analysing an organisation by breaking it down to strategically significant activities that add value to product and services in the eyes of the customer
Primary activities
Support activities

Question 2

Use of value chain

Answer 2

Can be used to identify those processes by which an organisation can achieve competitive advantage by providing at lower cost or more effective
Once identified, company may
1. Control all crucial things
2. Automate or outsource other activities

Question 3

Competitive advantage

Answer 3

How a SBU creates value for its users greater than the cost of supplying them and superior to rival SBUs

Question 4

Strategic business unit (SBU)

Answer 4

A part of an organisation serving distinct external market for products or services