LU2 Flashcards
Value that’s created and captured by the company is the XXX XXX.
Value that’s created and captured by the company is the XPROFIT MARGINX.
Competitive strategy is:
A firm’s competitive strategy concerns how to
compete in the business areas in which the firm operates.
Competitive strategy means to XXX how the firm intends to create and maintain a XXX XXX with respect to competitors.
Competitive strategy means to XDEFINEX how the firm intends to create and maintain a XCOMPETITIVE ADVANTAGEX with respect to its competitors.
Value chain is:
A set of activities that an organisation carries out to create value for its customers. Porter proposes a general-purpose value chain that
companies can use to examine all of their activities.
Primary activities (Porter’s Value Chain):
They relate directly to the physical creation, sales, maintenance and
support of a product or a service.
Primary activities (Porters Value Chain) in terms of activities/processes:
- Inbound logistics: processes related to receiving storing and distributing inputs internally.
Key factor: supplier relationships - Operations: activities that change inputs into outputs that are sold to customers.
Operational system: creates value - Outbound logistics: delivery of product to the customer, such as collection,
storage and distribution (internal & external to the company) - Marketing and sales: persuade clients to purchase from you instead of competitors; benefits & how you communicate them= sources of value
- Service: activities related to maintaining value of your product/service to your
customers, once purchased
Support activities (Porter’s Value Chain):
They support the aforementioned primary functions.
Support activities (Porter’s Value Chain) in terms of activities/processes:
- Procurement (purchasing): what the organisation does to get the resources needed; e.g., finding best prices
- HR management: recruits, hire, etc.
- Technological development: managing and processing information & protecting company’s knowledge base
- Infrastructure: support systems and functions that allow it to maintain daily operations; e.g., accounting, legal, administrative and general management
The Business Value Chain highlights:
Specific activities in the business where
competitive strategies can be best applied and where information systems are most likely to have a strategic impact.
Also used for benchmarking
Benchmarking involves:
Comparing the efficiency and effectiveness
of your business processes against strict standards and then measuring performance against those standards.
The Industry Value Chain encouragers you to:
To think about how
to use information systems to link up more efficiently with your
suppliers, strategic partners, and customers.
Example Amazon:
You want to build systems that:
• Make it easy for suppliers to display goods and open stores on the Amazon
site
• Make it easy for customers to pay for goods
• Develop systems that coordinate the shipment of goods to customers
• Develop shipment tracking systems for customers
Value Webs are:
Highly synchronised industry value chains
A XXX XXX is a collection of independent firms that use information technology
to coordinate their XXX XXX to produce a product or service for a market
collectively. => customer driven & less linear fashion than traditional value chain
A XVALUE WEBX is a collection of independent firms that use information technology
to coordinate their XVALUE CHAINX to produce a product or service for a market
collectively. => customer driven & less linear fashion than traditional value chain
Project Management Triangle:
It is used by managers to analyse or understand the difficulties that may arise due
to implementing and executing a project.
Three constraints of the Project Management Triangle:
Time, scope and costs.
(Quality is not part of the project management
triangle, but it is the ultimate objective of every
delivery)
Six stages of Project Management:
- Project Definition -
This refers to defining
the objectives and the factors to be considered
to make the project successful. - Project Initiation -
This refers to the resources as well as the planning before
the project starts. - Project Planning - Outlines the plan as to how the project should be executed.
This is where project management triangle is essential. It looks at the time, cost
and scope of the project. - Project Execution - Undertaking work to deliver the outcome of the project.
- Project Monitoring & Control -
Taking necessary measures, so that the
operation of the project runs smoothly. - Project Closure-
Acceptance of the deliverables and discontinuing resources
that were required to run the project.