Raj: Value Chain and Business proposition Flashcards
Where does the value chain start?
The value chain starts at looking at the customers needs and ends with the product
whats the difference between the supply chain and the value chain
the supply chain looks at the logistics of outputting a product to give customer satisfaction
the value chain looks at the activities that add value to a product originating from customer requests and feedback
What is porters value chain analysis showing?
All the sectors/activities that could be analysed and adapted to improve the performance reducing costs and increasing the margins/value
Made up of a series of primary activities which relate to the manufacture of the product
And a series of support activities that add value to the product or service
what are the key concepts of porters value chain?
productivity - competitiveness is determined by productivity
microeconomic foundations - productivity depends on improving the microeconomic capabilities of a firm (eg Improving operations, HR etc)
why does operational effectiveness and strategic positioning need to be balanced?
for example sales teams need to discuss projections with manufacturing teams as sales cant increase if manufacturing cannot
what is a SWOT analysis?
- Strength
- Weakness
- Opportunity
- Threat
purpose of SWOT analysis?
To help decision makers objectively analyse a decision and share ideas
What is PESTLE analysis?
its used to analyse the threats and opportunities a company may face under different market conditions.
these are:
Political, Economic, Social, Technological, Legal, Environmental
What are Porters 5 forces that affect a business?
1) Threat of a new entrant
2) Bargaining power of supplier
3) Bargaining power of buyers
4) Threat of substitute products
5) Rivalry among existing firms
what is BCG matrix?
its a 2x2 matrix that splits relative market share vs market growth into 4 quadrants, where the high market share high market growth is obviously the best one
