Π£ΠΏΡΠ°Π²Π»Π΅Π½ΡΠ΅ΡΠΊΠΈΠ΅ ΠΌΠΎΠ΄Π΅Π»ΠΈ β ΡΡΠΎ ΡΠΏΡΠΎΡΠ΅Π½Π½Π°Ρ ΠΊΠ°ΡΡΠΈΠ½Π° Π΄Π΅Π»ΠΎΠ²ΠΎΠΉ Π±ΠΈΠ·Π½Π΅Ρ-ΡΡΠ΅Π΄Ρ.
ΠΡΠ±Π°Ρ ΡΠΏΡΠ°Π²Π»Π΅Π½ΡΠ΅ΡΠΊΠ°Ρ ΠΌΠΎΠ΄Π΅Π»Ρ ΡΡΠΈΡΡΠ²Π°Π΅Ρ Π»ΠΈΡΡ ΡΠ΅ ΡΠ»Π΅ΠΌΠ΅Π½ΡΡ ΠΎΠΊΡΡΠΆΠ°ΡΡΠ΅Π³ΠΎ ΠΌΠΈΡΠ°, ΠΊΠΎΡΠΎΡΡΠ΅ ΠΎΠΊΠ°Π·ΡΠ²Π°ΡΡ Π½Π΅ΠΏΠΎΡΡΠ΅Π΄ΡΡΠ²Π΅Π½Π½ΠΎΠ΅ Π²Π»ΠΈΡΠ½ΠΈΠ΅ Π½Π° ΡΡΠ½ΠΊΡΠΈΠΎΠ½ΠΈΡΠΎΠ²Π°Π½ΠΈΠ΅ ΠΊΠΎΠ½ΠΊΡΠ΅ΡΠ½ΠΎΠΉ ΠΎΡΡΠ°ΡΠ»ΠΈ Π»ΠΈΠ±ΠΎ ΠΊΠΎΠΌΠΏΠ°Π½ΠΈΠΈ, Ρ. Π΅. ΡΠ²Π»ΡΡΡΡΡ Π·Π½Π°ΡΠΈΠΌΡΠΌΠΈ ΠΏΡΠΈ ΡΠ΅ΡΠ΅Π½ΠΈΠΈ ΠΊΠΎΠ½ΠΊΡΠ΅ΡΠ½ΠΎΠΉ Π·Π°Π΄Π°ΡΠΈ. Π’Π΅ΠΌΠΈ ΡΠ»Π΅ΠΌΠ΅Π½ΡΠ°ΠΌΠΈ, ΠΊΠΎΡΠΎΡΡΠ΅ Π½Π΅ Π·Π½Π°ΡΠΈΠΌΡ, Π² ΠΌΠΎΠ΄Π΅Π»ΡΡ , ΠΊΠ°ΠΊ ΠΏΡΠ°Π²ΠΈΠ»ΠΎ, ΠΏΡΠ΅Π½Π΅Π±ΡΠ΅Π³Π°ΡΡ. ΠΡΠΎΠΌΠ΅ ΡΠΎΠ³ΠΎ, ΠΈΡΡ ΠΎΠ΄Ρ ΠΈΠ· ΡΠΎΠΎΠ±ΡΠ°ΠΆΠ΅Π½ΠΈΠΉ ΡΠΊΠΎΠ½ΠΎΠΌΠΈΠΈ ΠΎΠΏΠ΅ΡΠ°ΡΠΈΠΎΠ½Π½ΡΡ ΠΈ Π°ΠΏΠΏΠ°ΡΠ°ΡΠ½ΡΡ ΡΠ΅ΡΡΡΡΠΎΠ² ΠΎΠΏΡΠ΅Π΄Π΅Π»Π΅Π½Π½ΠΎΠΌΡ Π»ΠΈΠΌΠΈΡΠΈΡΠΎΠ²Π°Π½ΠΈΡ ΠΏΠΎΠ΄Π»Π΅ΠΆΠΈΡ ΠΈ ΠΊΠΎΠ»ΠΈΡΠ΅ΡΡΠ²ΠΎ Π²ΠΊΠ»ΡΡΠ°Π΅ΠΌΡΡ Π² Π½Π΅Π΅ Π²Ρ ΠΎΠ΄Π½ΡΡ ΠΏΠ°ΡΠ°ΠΌΠ΅ΡΡΠΎΠ². Π ΠΏΡΠΈΠΌΠ΅ΡΡ, Π² ΠΠΎΡΡΠΎΠ½ΡΠΊΠΎΠΉ ΠΌΠ°ΡΡΠΈΡΠ΅ Π°Π½Π°Π»ΠΈΠ·ΠΈΡΡΡΡΡΡ Π΄ΠΎΠ»ΠΈ, Π·Π°Π½ΠΈΠΌΠ°Π΅ΠΌΡΠ΅ ΠΊΠΎΠΌΠΏΠ°Π½ΠΈΠ΅ΠΉ Π² ΠΎΠΏΡΠ΅Π΄Π΅Π»Π΅Π½Π½ΡΡ ΡΠ΅Π³ΠΌΠ΅Π½ΡΠ°Ρ ΡΡΠ½ΠΊΠ°, ΠΏΠΎ ΠΎΡΠ½ΠΎΡΠ΅Π½ΠΈΡ ΠΊ ΡΡΠ½ΠΎΡΠ½ΡΠΌ Π΄ΠΎΠ»ΡΠΌ ΠΊΠΎΠ½ΠΊΡΡΠ΅Π½ΡΠΎΠ². ΠΡΠΈ ΡΡΠΎΠΌ Π°Π½Π°Π»ΠΈΠ·Ρ ΠΏΠΎΠ΄Π»Π΅ΠΆΠ°Ρ ΡΠΎΠ»ΡΠΊΠΎ ΠΈΠΌΠ΅ΡΡΠΈΠ΅ΡΡ Π½Π° ΡΡΠ½ΠΊΠ΅ ΠΏΡΠΎΠ΄ΡΠΊΡΡ ΠΈ ΡΡΠ»ΡΠ³ΠΈ, ΡΡΠ΅Ρ Π²ΠΎΠ·ΠΌΠΎΠΆΠ½ΠΎΡΡΠΈ Π°Π½Π°Π»ΠΈΠ·Π° ΠΏΠΎΡΠ²Π»Π΅Π½ΠΈΡ Π½ΠΎΠ²ΡΡ ΠΏΡΠΎΠ΄ΡΠΊΡΠΎΠ² ΠΈΠ»ΠΈ ΡΡΠ»ΡΠ³ Π½Π΅ ΠΏΡΠ΅Π΄ΡΡΠΌΠ°ΡΡΠΈΠ²Π°Π΅ΡΡΡ. ΠΠ½Π°Π»ΠΎΠ³ΠΈΡΠ½ΠΎ ΠΌΠΎΠ΄Π΅Π»Ρ ΠΠΠ Π½Π΅ ΠΏΠΎΠ·Π²ΠΎΠ»ΡΠ΅Ρ Π°Π½Π°Π»ΠΈΠ·ΠΈΡΠΎΠ²Π°ΡΡ Π²ΠΎΠ·ΠΌΠΎΠΆΠ½ΡΠ΅ Π² Π±ΡΠ΄ΡΡΠ΅ΠΌ Π΄Π΅ΠΉΡΡΠ²ΠΈΡ ΡΠ΅Ρ ΠΈΠ»ΠΈ ΠΈΠ½ΡΡ ΡΡΠ°ΡΡΠ½ΠΈΠΊΠΎΠ² ΡΡΠ½ΠΊΠ°.
ΠΡΠ²ΠΎΠ΄: Π½Π΅Π»ΡΠ·Ρ ΠΏΡΠΈΠ½ΠΈΠΌΠ°ΡΡ ΡΠ΅ΡΠ΅Π½ΠΈΡ, Π±Π°Π·ΠΈΡΡΡΡΠΈΠ΅ΡΡ Π½Π° Π°Π½Π°Π»ΠΈΠ·Π΅ ΡΠ°Π±ΠΎΡΡ ΡΠΎΠ»ΡΠΊΠΎ ΠΎΠ΄Π½ΠΎΠΉ ΠΌΠΎΠ΄Π΅Π»ΠΈ.
ΠΠ°ΠΆΠ΄Π°Ρ ΡΠΏΡΠ°Π²Π»Π΅Π½ΡΠ΅ΡΠΊΠ°Ρ ΠΌΠΎΠ΄Π΅Π»Ρ Π½Π΅ΡΠ΅Ρ Π² ΡΠ΅Π±Π΅ ΡΠ΅ΡΡΡ Β«ΡΠ²ΠΎΠ΅ΠΉΒ» ΡΠΊΠΎΠ½ΠΎΠΌΠΈΡΠ΅ΡΠΊΠΎΠΉ ΡΠΏΠΎΡ ΠΈ. Π ΡΡΡΡΠΊΡΡΡΠ΅ Π»ΡΠ±ΠΎΠΉ ΠΌΠΎΠ΄Π΅Π»ΠΈ, ΠΊΠ°ΠΊ ΠΏΡΠ°Π²ΠΈΠ»ΠΎ, Π΅ΡΠ΅ Π½Π° ΡΡΠ°Π΄ΠΈΠΈ Π΅Π΅ ΡΠ°Π·ΡΠ°Π±ΠΎΡΠΊΠΈ, Π·Π°ΠΊΠ»Π°Π΄ΡΠ²Π°ΡΡΡΡ ΠΎΠΏΡΠ΅Π΄Π΅Π»Π΅Π½Π½ΡΠ΅ ΠΏΡΠ΅Π΄ΠΏΠΎΠ»ΠΎΠΆΠ΅Π½ΠΈΡ, ΠΊΠ°ΡΠ°ΡΡΠΈΠ΅ΡΡ ΡΠΊΠΎΠ½ΠΎΠΌΠΈΡΠ΅ΡΠΊΠΈΡ ΡΡΠ»ΠΎΠ²ΠΈΠΉ (ΠΊΠ°ΠΊ ΡΠ΅ΠΊΡΡΠΈΡ , ΡΠ°ΠΊ ΠΈ Π±ΡΠ΄ΡΡΠΈΡ ), Π² ΡΠ°ΠΌΠΊΠ°Ρ ΠΊΠΎΡΠΎΡΡΡ Π±ΡΠ΄Π΅Ρ ΠΏΡΠΎΡΠ΅ΠΊΠ°ΡΡ Π΄Π΅ΡΡΠ΅Π»ΡΠ½ΠΎΡΡΡ ΠΎΡΠ³Π°Π½ΠΈΠ·Π°ΡΠΈΠΈ. Π‘ΠΌΠ΅Π½Π° ΠΏΡΠΈΠ²ΡΡΠ½ΠΎΠ³ΠΎ Π΄Π΅Π»ΠΎΠ²ΠΎΠ³ΠΎ ΠΊΠ»ΠΈΠΌΠ°ΡΠ°, Ρ ΠΎΡΡ Π΄Π°Π»Π΅ΠΊΠΎ Π½Π΅ Π²ΡΠ΅Π³Π΄Π° ΠΏΡΠΈΠ²ΠΎΠ΄ΡΡΠ°Ρ ΠΊ ΠΈΠ·ΠΌΠ΅Π½Π΅Π½ΠΈΡ Π²Π°Π»ΠΈΠ΄Π½ΠΎΡΡΠΈ Π²ΡΡ ΠΎΠ΄Π½ΡΡ ΡΠ΅Π·ΡΠ»ΡΡΠ°ΡΠΎΠ², ΡΠ΅ΠΌ Π½Π΅ ΠΌΠ΅Π½Π΅Π΅ ΡΡΠ°Π²ΠΈΡ ΠΏΠΎΠ΄ Π²ΠΎΠΏΡΠΎΡ ΡΡΠ΅ΠΏΠ΅Π½Ρ Π°Π΄Π΅ΠΊΠ²Π°ΡΠ½ΠΎΡΡΠΈ Π΄Π°Π½Π½ΡΡ ΡΠ΅Π·ΡΠ»ΡΡΠ°ΡΠΎΠ² Π² Π½ΠΎΠ²ΡΡ ΡΠΊΠΎΠ½ΠΎΠΌΠΈΡΠ΅ΡΠΊΠΈΡ ΡΡΠ»ΠΎΠ²ΠΈΡΡ .
Π’Π°ΠΊ, ΡΠ΅Π³ΠΎΠ΄Π½Ρ Π»ΡΠ±ΠΎΠΉ ΠΎΡΠ΄Π΅Π»ΡΠ½ΡΠΉ ΡΡΠ°ΡΡΠ°ΠΏ ΠΌΠΎΠΆΠ΅Ρ Π²Π½Π΅ΡΡΠΈ ΠΏΡΠΈΠ½ΡΠΈΠΏΠΈΠ°Π»ΡΠ½ΠΎ ΡΡΡΠ΅ΡΡΠ²Π΅Π½Π½ΡΠ΅ ΠΊΠΎΡΡΠ΅ΠΊΡΠΈΠ²Ρ Π² ΡΡΠ»ΠΎΠ²ΠΈΡ ΡΡΠ½ΠΊΡΠΈΠΎΠ½ΠΈΡΠΎΠ²Π°Π½ΠΈΡ ΡΠ΅Π»ΠΎΠ³ΠΎ ΡΡΠ΄Π° ΠΎΡΡΠ°ΡΠ»Π΅ΠΉ (Π² ΠΊΠ°ΡΠ΅ΡΡΠ²Π΅ ΠΏΡΠΈΠΌΠ΅ΡΠ° ΠΌΠΎΠΆΠ½ΠΎ ΠΏΡΠΈΠ²Π΅ΡΡΠΈ ΡΠΎΡ ΠΆΠ΅ Amazon.com), Π²ΡΠ»Π΅Π΄ΡΡΠ²ΠΈΠ΅ ΡΠ΅Π³ΠΎ Π²ΠΏΠΎΠ»Π½Π΅ Π΅ΡΡΠ΅ΡΡΠ²Π΅Π½Π½ΠΎ, ΡΡΠΎ ΠΏΡΠΎΠΈΡΡ ΠΎΠ΄ΡΡΠΈΠ΅ ΠΈΠ·ΠΌΠ΅Π½Π΅Π½ΠΈΡ Π² ΠΎΠΏΡΠ΅Π΄Π΅Π»Π΅Π½Π½ΠΎΠΉ ΠΌΠ΅ΡΠ΅ ΠΎΠ³ΡΠ°Π½ΠΈΡΠΈΠ²Π°ΡΡ Π²ΠΎΠ·ΠΌΠΎΠΆΠ½ΠΎΡΡΠΈ Π°Π΄Π΅ΠΊΠ²Π°ΡΠ½ΠΎΠ³ΠΎ ΠΈΡΠΏΠΎΠ»ΡΠ·ΠΎΠ²Π°Π½ΠΈΡ ΠΌΠ½ΠΎΠ³ΠΈΡ Β«ΡΡΠ°ΡΡΡ Β» ΠΌΠΎΠ΄Π΅Π»Π΅ΠΉ.
Π ΡΠ΅Π·ΡΠ»ΡΡΠ°ΡΠ΅, Π½Π΅ΡΠΌΠΎΡΡΡ Π½Π° ΡΠΎΡ ΡΠ°Π½Π΅Π½ΠΈΠ΅ ΠΎΠ±ΡΠΈΡ ΠΏΡΠΈΠ½ΡΠΈΠΏΠΎΠ² ΡΠ΅ΡΠ΅Π½ΠΈΡ Π·Π°Π΄Π°Ρ, ΡΠ°ΠΊΠΈΡ ΠΊΠ°ΠΊ, Π½Π°ΠΏΡΠΈΠΌΠ΅Ρ, ΡΠ΄Π΅ΡΠΆΠ°Π½ΠΈΠ΅ ΡΡΠ°ΡΡΡ ΠΈ ΠΏΡΠΈΠ²Π»Π΅ΡΠ΅Π½ΠΈΠ΅ Π½ΠΎΠ²ΡΡ ΠΊΠ»ΠΈΠ΅Π½ΡΠΎΠ² ΠΏΡΡΠ΅ΠΌ Π½ΠΈΠ·ΠΊΠΎΠΉ ΡΠ΅Π½Ρ ΠΈΠ»ΠΈ Π²ΡΡΠΎΠΊΠΎΠ³ΠΎ ΠΊΠ°ΡΠ΅ΡΡΠ²Π° ΠΏΡΠΎΠ΄ΡΠΊΡΠΈΠΈ, ΡΠ°ΡΡΠΌΠΎΡΡΠ΅Π½Π½ΡΡ Π² ΡΠ°ΠΌΠΊΠ°Ρ ΠΎΠ±ΠΎΠ±ΡΠ΅Π½Π½ΠΎΠΉ ΡΠ΅ΠΎΡΠΈΠΈ ΠΠΎΡΡΠ΅ΡΠ°, Π΄Π°Π»Π΅ΠΊΠΎ Π½Π΅ ΠΎΠ·Π½Π°ΡΠ°Π΅Ρ, ΡΡΠΎ Π΄Π°Π½Π½Π°Ρ ΠΌΠΎΠ΄Π΅Π»Ρ ΠΏΠΎΠ»Π½ΠΎΡΡΡΡ ΡΡΠΈΡΡΠ²Π°Π΅Ρ ΠΎΡΠΎΠ±Π΅Π½Π½ΠΎΡΡΠΈ ΠΈΠΌΠ΅Π½Π½ΠΎ ΡΠ΅Π³ΠΎΠ΄Π½ΡΡΠ½ΠΈΡ ΡΠ΅Π°Π»ΠΈΠΉ. ΠΠΎΠ²ΡΠ΅ ΡΠ΅Ρ Π½ΠΎΠ»ΠΎΠ³ΠΈΠΈ ΠΈ ΠΊΠΎΠ½ΡΠ΅ΠΏΡΠΈΠΈ ΠΏΡΠΎΠ΄Π²ΠΈΠΆΠ΅Π½ΠΈΡ Π°Π½Π°Π»ΠΎΠ³ΠΈΡΠ½ΠΎΠΉ ΠΏΡΠΎΠ΄ΡΠΊΡΠΈΠΈ/ΡΡΠ»ΡΠ³ Π² ΠΊΡΠ°ΡΡΠ°ΠΉΡΠΈΠΉ ΠΏΡΠΎΠΌΠ΅ΠΆΡΡΠΎΠΊ Π²ΡΠ΅ΠΌΠ΅Π½ΠΈ ΠΌΠΎΠ³ΡΡ ΠΊΠ°ΡΠ΄ΠΈΠ½Π°Π»ΡΠ½ΠΎ Π½Π°ΡΡΡΠΈΡΡ ΠΏΠΎΠ·ΠΈΡΠΈΠΈ ΡΠ΅Π½ΠΎΠ²ΠΎΠ³ΠΎ Π»ΠΈΠ΄Π΅ΡΠ°. ΠΠ½Π°Π»ΠΎΠ³ΠΈΡΠ½ΠΎ ΠΎΡΠ³Π°Π½ΠΈΠ·Π°ΡΠΈΡ, ΡΠΏΠ΅ΡΠΈΠ°Π»ΠΈΠ·ΠΈΡΡΡΡΠ°ΡΡΡ Π½Π° ΠΎΡΠ΄Π΅Π»ΡΠ½ΠΎΠΌ Π²ΠΈΠ΄Π΅ ΡΠΎΠ²Π°ΡΠ°, ΠΌΠΎΠΆΠ΅Ρ Π±ΡΡΡΡΠΎ ΡΡΡΠ°ΡΠΈΡΡ ΡΠ²ΠΎΠΈ ΠΊΠΎΠ½ΠΊΡΡΠ΅Π½ΡΠ½ΡΠ΅ ΠΏΡΠ΅ΠΈΠΌΡΡΠ΅ΡΡΠ²Π° Π² ΡΠ»ΡΡΠ°Π΅ ΠΊΠΎΠΏΠΈΡΠΎΠ²Π°Π½ΠΈΡ ΠΊΠΎΠ½ΠΊΡΡΠ΅Π½ΡΠ°ΠΌΠΈ Π΅Π΅ ΠΏΡΠΎΠ΄ΡΠΊΡΠΎΠ²ΠΎΠΉ Π»ΠΈΠ½Π΅ΠΉΠΊΠΈ ΠΈ ΡΠ΅ΡΠ²ΠΈΡΠ½ΠΎΠ³ΠΎ ΠΎΠ±ΡΠ»ΡΠΆΠΈΠ²Π°Π½ΠΈΡ.
ΠΡΠ²ΠΎΠ΄: Π½ΠΈΠΊΠΎΠ³Π΄Π° Π½Π΅ ΡΠ»Π΅Π΄ΡΠ΅Ρ ΡΠ»Π΅ΠΏΠΎ ΠΈΡΠΏΠΎΠ»ΡΠ·ΠΎΠ²Π°ΡΡ ΠΌΠΎΠ΄Π΅Π»ΠΈ, ΡΡΠΊΠΎΠ²ΠΎΠ΄ΡΡΠ²ΡΡΡΡ Π»ΠΈΡΡ ΡΡΠΏΠ΅ΡΠ½ΠΎΡΡΡΡ ΠΈΡ ΠΏΡΠΈΠΌΠ΅Π½Π΅Π½ΠΈΡ Π² ΠΏΡΠΎΡΠ»ΠΎΠΌ.
(ΠΡΠΎΠ΄ΠΎΠ»ΠΆΠ΅Π½ΠΈΠ΅ ΡΠΌ. Π² ΡΡΠΎΠΊΠ΅ 10)
ΠΡΡΠΎΡΠ½ΠΈΠΊ: 20.09.2005, www.franklin-grant.ru
Lesson 10
Strategic Management Analysis
Read and translate the text and learn terms from the Essential Vocabulary.
SWOT Analysis
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firmβs resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection.
SWOT Analysis Framework
Strengths. A firmβs strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:
β patents or certain expertise;
β strong brand names;
β good reputation among customers;
β cost advantages from proprietary know-how;
β exclusive access to high grade natural resources;
β favorable access to distribution networks.
Weaknesses. The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:
β lack of patent protection;
β a weak brand name;
β poor reputation among customers;
β high cost structure;
β lack of access to the best natural resources;
β lack of access to key distribution channels.
In some cases, a weakness may be the flip side of a strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.
Opportunities. The external environmental analysis may reveal certain new opportunities for profit and growth. Examples of such opportunities include:
β an unfulfilled customer need;
β arrival of new technologies;
β loosening of regulations;
β removal of international trade barriers.
Threats. Changes in the external environment also may present threats to the firm. Examples of such threats include:
β shift in consumer tastes away from the firmβs products;
β emergence of substitute products;
β new regulations;
β increased trade barriers.
The SWOT Matrix
A firm should not necessarily pursue the most lucrative opportunities. Rather, it may have a better chance at developing a competitive edge by identifying a fit between the firmβs strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity.
To develop strategies that take into account SWOT profile, a matrix of these factors can be constructed.
SWOT Matrix
β S-O strategies pursue opportunities that are a good fit to the companyβs strengths.
β W-O strategies overcome weaknesses to pursue opportunities.
β S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats.
β W-T strategies establish a defensive plan to prevent the firmβs weaknesses from making it highly susceptible to external threats.
Source: www.quickmba.com
The Value Chain
To analyze the specific activities through which firms can create a competitive advantage, it is useful to model the firm as a chain of value-creating activities. Michael Porter identified a set of interrelated generic activities common to a wide range of firms. The resulting model is known as the value chain:
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.
β Inbound logistics include the receiving, warehousing, and inventory control of input materials.
β Operations are the value-creating activities that transform the inputs into the final product.
β Outbound logistics are the activities required to get the finished product to the customer, including warehousing, order fulfillment, etc.
β Marketing & Sales are those activities associated with getting buyers to purchase the product, including channel selection, advertising, pricing, etc.
β Service activities are those that maintain and enhance the productβs 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:
β Procurement β the function of purchasing the raw materials and other inputs used in the value-creating activities.
β Technology Development β includes R&D, process automation, and other technology development used to support the value-chain activities.
β Human Resource Management β the activities associated with recruiting, development and compensation of employees.
β Firm Infrastructure β includes activities such as finance, legal, quality management, etc.
Support activities are often viewed as Β«overheadΒ», 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 firmβs 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 firmβs control and sometimes present themselves as threats. For this reason, some say that Β«pestΒ» 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
βPolitical stability
βRisk of military invasion
βRisk of nationalization
βLegal framework for contract enforcement
βIntellectual property protection
βTrade regulations & tariffs
βFavored trading partners
βAnti-trust laws
βPricing regulations
βTaxation system β tax rates and incentives
βWage legislation β minimum wage and overtime
βWork week
βMandatory employee benefits
βIndustrial safety regulations
βProduct labeling requirements
Economic Analysis
βType of economic system in countries of operation
βGovernment intervention in the free market
βComparative advantages of host country
βExchange rates and stability of host country currency
βEfficiency of financial markets
βInfrastructure quality
βSkill level of workforce
βLabor costs
βBusiness cycle stage (e.g. prosperity, recession, recovery)
βEconomic growth rate
βDisposable income