Английский язык. Практический курс для решения бизнес-задач - Пусенкова Нина - Страница 28

Primary Value Chain Activities

Inbound logistics > Operations > Outbound logistics > Marketing & Sales > Service

The goal of these activities is to create value that exceeds the cost of providing the product or service, thus generating a profit margin.

– Inbound logistics include the receiving, warehousing, and inventory control of input materials.

– Operations are the value-creating activities that transform the inputs into the final product.

– Outbound logistics are the activities required to get the finished product to the customer, including warehousing, order fulfillment, etc.

– Marketing & Sales are those activities associated with getting buyers to purchase the product, including channel selection, advertising, pricing, etc.

– Service activities are those that maintain and enhance the product’s value including customer support, after-sale services, etc.

Primary activities may be vital in developing a competitive advantage. For example, logistics activities are critical for a provider of distribution services, and service activities may be the key focus for a firm offering on-site maintenance contracts for office equipment. These five categories are generic and include specific activities that vary by industry.

Support Activities

The primary value chain activities described above are facilitated by support activities. Porter identified four generic categories of support activities, the details of which are industry-specific:

– Procurement – the function of purchasing the raw materials and other inputs used in the value-creating activities.

– Technology Development – includes R&D, process automation, and other technology development used to support the value-chain activities.

– Human Resource Management – the activities associated with recruiting, development and compensation of employees.

– Firm Infrastructure – includes activities such as finance, legal, quality management, etc.

Support activities are often viewed as «overhead», but some firms successfully have used them to develop a competitive advantage, for example, to develop a cost advantage through innovative management of information systems.

Value-Chain Analysis

In order to better understand the activities for a competitive advantage, one can begin with the generic value chain and then identify the relevant firm-specific activities. Process flows can be mapped, and these flows used to isolate the individual value-creating activities.

Once the discrete activities are defined, linkages between activities should be identified. A linkage exists if the performance or cost of one activity affects that of another. Competitive advantage may be obtained by optimizing and coordinating linked activities.

The value chain also is useful in outsourcing decisions. Understanding the linkages between activities can lead to more optimal make-or-buy decisions that can result in either a cost advantage or a differentiating advantage.

The Value System

The firm’s value chain links to the value chain of upstream suppliers and downstream buyers. The result is a larger stream of activities known as the value system. The development of a competitive advantage depends not only on the firm-specific value chain, but also on the value system of which the firm is a part.

Source: www.quickmba.com

PEST Analysis

A PEST Analysis is an analysis of the external macro-environment that affects all firms. PEST is an acronym for the Political, Economic, Social and Technological factors of the external macro-environment. Such external factors are usually beyond the firm’s control and sometimes present themselves as threats. For this reason, some say that «pest» is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis.

Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest.

Political Analysis

–Political stability

–Risk of military invasion

–Risk of nationalization

–Legal framework for contract enforcement

–Intellectual property protection

–Trade regulations & tariffs

–Favored trading partners

–Anti-trust laws

–Pricing regulations

–Taxation system – tax rates and incentives

–Wage legislation – minimum wage and overtime

–Work week

–Mandatory employee benefits

–Industrial safety regulations

–Product labeling requirements

Economic Analysis

–Type of economic system in countries of operation

–Government intervention in the free market

–Comparative advantages of host country

–Exchange rates and stability of host country currency

–Efficiency of financial markets

–Infrastructure quality

–Skill level of workforce

–Labor costs

–Business cycle stage (e.g. prosperity, recession, recovery)

–Economic growth rate

–Disposable income

–Unemployment rate

–Inflation rate

–Interest rates

Social Analysis

–Demographics

–Class structure

–Education

–Culture (gender roles, etc.)

–Entrepreneurial spirit

–Attitudes (health, environmental consciousness, etc.)

–Leisure interests

Technological Analysis

–Recent technological developments

–Technology’s impact on product offering

–Impact on cost structure

–Impact on value chain structure

–Rate of technological diffusion

The number of macro-environmental factors is virtually unlimited. In practice, the firm must prioritize and monitor those factors that influence the industry. Even so, it may be difficult to forecast future trends with an acceptable level of accuracy. In this regard, the firm may turn to scenario planning techniques to deal with high level of uncertainty in important macro-environmental variables.

Source: www.netmba.com

Essential Vocabulary

1. SWOT Analysis – анализ сильных и слабых сторон, возможностей и угроз

2. expertise n – специальные знания, компетентность, эрудиция; экспертиза

3. proprietor n – собственник, владелец

proprietary a – собственнический, составляющий собственность

4. know-how n – ноу-хау

5. high-grade a – высокого уровня, высокого качества

6. shift n – смена, часы работы; сдвиг, перемещение; средство

shift v – сдвигаться, перемещаться; менять, изменять; убирать

7. substitution n – замена, замещение, субституция

substitute v – заменять

substitute a – взаимозаменяемый, субститут

8. profile n – профиль, очертание; краткий очерк, краткое описание

9. value chain – цепочка ценности

10. logistics n – логистика, материально-техническое снабжение

11. warehouse n – склад

12. after-sale services – послепродажное обслуживание

13.specific a – специфический, удельный, особый, характерный; конкретный, определенный

14. support activities – вспомогательная деятельность

15. procurement n – закупки, приобретение, материально-техническое обеспечение; контракт на поставку