creating value for stakeholders

Question 1

value

Answer 1

conveys benefit to an entity

Question 2

value creation

Answer 2

• through business model
• inputs from capitals –> transformed through business activities/ interactions –> produces outputs/ outcomes –> create/destroy value

Question 3

role of business

Answer 3

• satisfy needs/wants with products
• jobs and income
• pay taxes to fund gov spending
• innovation, efficiency, progress

Question 4

principles of value

Answer 4

• created within context, enviro, time
• financial/non-financial
• from tangible/intangible assets
• from private/public resources
• requires innovation

Question 5

key principle

Answer 5

corporate values, beliefs, culture influence how, whether and what type of value is created

Question 6

shareholder primacy

Answer 6

• main goal to maximise shareholder value
• ceo agent for shareholders
• role of government to tackle social issues
• pie-splitting mentality

Question 7

corporate social responsibility

Answer 7

management concept where companies integrate social/ environmental concerns in business operations/interactions with stakeholders

Question 8

grow the pie

Answer 8

ingrained in business where ultimate goal is to create value for society and not take any away from other stakeholders

Question 9

dimensions of gtp

Answer 9

• multiplication in social benefits; $1 spent = $1 value?
• comparative advantage; $1 spent create more value than spent by others?
• materiality; benefit for material stakeholders?

Question 10

primary activities

Answer 10

directly concerned with the creation/delivery of a product

Question 11

5 primary activities

Answer 11

• inbound logistics
• operations
• outbound logistics
• marketing/sales
• service

Question 12

inbound logistics

Answer 12

• receiving, storing, distributing inputs of product
• material handling, stock control, transport etc

Question 13

operations

Answer 13

• transforms inputs into final product
• machining, packaging, assembly, testing etc

Question 14

outbound logistics

Answer 14

• collecting, storing, distributing product to customers
• warehousing, material handling, distribution etc

Question 15

marketing/sales

Answer 15

• how consumers are made aware of product and are able to purchase it
• sales administration, advertising, selling

Question 16

service

Answer 16

activities that enhance/maintain value of product
- installation, repair, training etc

Question 17

support activities

Answer 17

necessary for/improve effectiveness/efficiency of primary activities

Question 18

4 support activities

Answer 18

• procurement
• technology development
• HR management
• firm infrastructure

Question 19

procurement

Answer 19

• acquiring various resource inputs to primary activities
• negotiating prices, machinery, buildings, purchasing inputs

Question 20

tech development

Answer 20

• concerned directly with product (R&D, product design)
• or processes (process development)
• or particular resource (raw material improvements)

Question 21

HR management

Answer 21

• recruiting, managing, training, developing, and rewarding people within organisation

Question 22

firm infrastructure

Answer 22

• formal systems of planning, finance, quality control, info management, and structure of organisation

Question 23

value system

Answer 23

• wider value system of different interacting organisations and their individual value chains
• outsourcing to specialise