The effects of this organizing and leadership can be profound. The support activities of a firm include: A) inbound logistics, technology, outbound logistics, sales and marketing, and service. structure of the industry in which it competes, Many industries are imperfectly competitive. What Is Value Chain Analysis and How Do You Use It? - Business News Daily Probably the best single way to reduce quality problems is to reduce cycle time. Mastering Strategic Management - 1st Canadian Edition by Janice Edwards is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. A healthy doughnut? The firm could use computers to monitor and evaluate health and fitness of members and customize workouts, in product differentiation strategy. The first is strategic supply chain managementthe use of supply chains as a means to create competitive advantages and enhance firm performance. Although doughnuts are seen by most consumers as notoriously unhealthy, the Doughnut Plant in New York City has carved out a unique niche for itself by obtaining organic ingredients from a local farmers market. Value chains include both primary and secondary activities. For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. C) marketing expertise increasing a firm's revenues and enabling it to enter new markets. The Internet itself is an example of a successful implementation of network economics the more people participate, the more valuable and essential a commodity it is. The resource-based view (RBV) of the firm combines two perspectives: A) the primary and support activities of the firm. A crash R&D program by one firm cannot replicate a successful technology developed by another firm when research findings cumulate. Porter's Value Chain is a useful strategic management tool. A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces? If a company were to provide a service through the Internet such as a project management application, the costs to the company of adding another user are small (as the software infrastructure or application is already built), and the more users are signed up the more profit is made. In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer. In the strategy of product differentiation, information systems are used to enable new products and services. The correct answer is letter D: organization infrastructure, human resources, technology, and procurement. Information Systems-Chapter 3 Flashcards D) organization infrastructure, human resources, technology, and procurement. How is the concept of core competency relevant to this business? Citibank is exploiting ________________ by running a call center in India. Primary activities involve the creation and distribution of goods and services. If the es, In many cases, pioneers lose their market lead and initial market share to imitators who:______. What is the primary limitation of the transnational strategy? Media advisory. Human resource management consists of activities involved in recruiting, hiring, training, development, and compensation of all types of personnel. The support activities of a firm include: A) inbound logistics __________ are typically embedded in unique routines and practices that have evolved and accumulated over time - such as trust and effective work teams. B) uses Internet technology to maintain a virtual storefront. Preston gives its local operations the authority to adapt value activities to prevailing local economic, political, legal, and cultural conditions. B) Compare the firm's financial ratios over the most recent one-year period. International Business Chapter 11 Flashcards | Quizlet ", "answerCount": 2, "upvoteCount": 0, "dateCreated": "2/24/2023 9:37:08 PM", "datePublished": "2/24/2023 9:37:08 PM", "suggestedAnswer": [ { "@type": "Answer", "text": "Answer: The correct answer is letter ' D ': organization infrastructure, human resources, technology, and procurement. answered expert verified. Large doughnut chains such as Tim Hortons can gain cost advantages over their smaller rivals by purchasing flour, sugar, and other ingredients in bulk. Consider a simple illustrative example: doughnut shops. A) Organizational strengths may not lead to competitive advantage, B) SWOT's focus on the external environment is too broad and integrative, C) SWOT gives a one-shot view of a moving target, D) SWOT overemphasizes a single dimension of strategy. marketing expertise increasing a firm's revenues and enabling it to enter new markets. Each of these activities can contribute to a firm's. Again, this buffer of increased and improved information flows comes at an expense, so executives seeking to build a best value supply chain will investigate the opportunity and determine whether this action optimizes total costs. The support activities include: Firm infrastructure: These activities support the overall creation of products. The MNE that applies a global strategy aims to ________________________________________. Threads is a new app from the parent company of Facebook, Instagram and WhatsApp. Qualityrefers to the relative reliability of supply chain activities. B. Motorola has revised its compensation system to reward employees who learn a variety of skills. In value chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. Lee, H. L. (2004, October). A recent research study used data from more than 12,000 organizations to demonstrate that how the level of knowledge, skills, and abilities of a firms employees can act as a strategic resource and strongly influence the firms performance (Crook et al., 2011). B) creating educational opportunities for management. C) supports both individual primary and support activities and the entire value chain. C) value webs of its suppliers and distributors. C. tangible resources, intangible resources, and organizational capabilities. Porter, M. E. 1985. Instead, relative to their peers, best value supply chains focus on the total value added to the customer. C) rare, valuable, inimitable, nonsubstitutable. D) top management providing a key role in collaborating with important customers. C) sees the cost of adding new members as inconsequential. All of the following have been disruptive technologies except: All of the following are ways to improve quality except: A) improving products and services based on customer demands. C) organizational culture and leadership. Value Chain - Overview, How To Implement, Advantages A) supports only individual primary activities. Value is added through this process because consumers are willing to pay much more for doughnuts than they would be willing to pay for the underlying ingredients. Seeing quality as the responsibility of all people and functions in an organization is central to the concept of: The reduction of errors to 3.4 defects per million opportunities is central to the concept of: Which of the following is not an advantage for new companies entering the marketplace? The XYZ Corp. is taking advantage of a ____________ system. For example, Smalltown Computer might define a core competency as being able to advise customers as to the type of system they really need, and Smalltown Computer could engage in knowledge-gathering activities to help employees assess customer need. In value chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. Guide to Value Chain Models: Definition and How To Use Them Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis? a company can continually develop products that have unique features. Generally, creating one supply chain for a customer is desired because this helps minimize costs. D. top management providing a key role in collaborating with important customers. Study with Quizlet and memorize flashcards containing terms like The five basic entities that make up any business are suppliers, customers, employees, products and services, and:, Promoting the organizations products or services is a responsibility of the ________ function, Checking for product quality is an activity associated with the ________ function and more. C) organization infrastructure, human resources, sales and marketing, and technology. In this case, spare parts inventory is positioned in proximity to the class of simulators requiring quick turnaround, while the less-time-sensitive devices are sent to a centralized repair facility. Through balancing these four metrics, best value supply chains attempt to provide the highest level of total value added. How the firm is organized and led by executives. Which of the four generic strategies is the company using? Which of the following is a primary activity? A) purchasing key inputs B) recruiting and training employees C) repairing the product for the consumer relying on home managers' knowledge of foreign markets, compete essentially the same way whatever the company does business. Test 2 Flashcards | Chegg.com Citibank decides to open a call center in Mumbai, India because a detailed analysis of the country-specific advantages suggests that India is the optimal place for responding to customers' calls. B) inbound logistics, organization infrastructure, outbound logistics, technology, andprocurement. A supply chainis a system of people, activities, information, and resources involved in creating a product and moving it to the customer. Hyde Park Labs, a 300,000-square-foot life sciences facility. Support activities include a firm's infrastructure, human resource management, technology development, and procurement . Define the concept and give examples. "It stems from the many discrete activities a firm performs in designing, producing, marketing, delivering and supporting its product. B) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement. These activities can be categorized as either primary activities or support activities. B) effective information systems contributing significantly to a firm's overall cost leadership strategy. This has been termed. An information system can enable a company to focus on a market niche through: Hilton Hotels' use of customer information software to identify the most profitable customers to direct services to is an example of using information systems to: All of the following industries have been severely disrupted by the Internet except: To what competitive force did the printed encyclopedia industry succumb? Value Chain Analysis EXPLAINED with EXAMPLES | B2U - Business-to-you.com One of Southwest Airlines unique capabilities is moving passengers more quickly than its rivals. B) sees the supply chain as the primary activity for adding value. Value chains include both primary and secondary activities. The successful candidate will have a demonstrated knowledge of, and experience . D) organization infrastructure, human resources, technology, and procurement. Political, legal, economic, monetary, and institutional forces comprise the _________ of international business and influence managers' actions. Also important is human resource managementwhich includes activities involved in recruiting, training, and compensating employees. 4.5 Value Chain - Strategic Management - Virginia Tech Also, firms whose supply chains were centred in the Port of Los Angeles collectively lost more than $2 billion a day during a 2002 workers strike. Everything to know about NBA Summer League 2023 | NBA.com transferring core competencies to foreign markets. A primary challenge in BPM is employee resistance. Organizational strengths may not lead to competitive advantage. What is BPM? A) if the overall strategy of the firm is the same. Although doughnut making is not a high-tech business, technology plays a variety of roles for doughnut shops, such as allowing customers to use debit cards, just in time delivery systems, online ordering, and supply management systems. There are four main forms of support activities for most manufacturers. C. the internal analysis of the firm as well as the external analysis of the industry and competitive environment. Appendix 1: Mastering Strategic Management Powerpoints, When executives choose strategies, an organizations resources and capabilities should be examined alongside consideration of its value chain. What are the steps involved in practicing BPM? Historical comparisons are often misleading. What local business in your town could be improved most dramatically by applying the value chain? Threads: Everything to know about Instagram's app to rival Twitter D) For a producer, quality can be measured with a test. ) Which of the following is a primary activity? However, it might be good business practice for Smalltown Computer to define its core competencies in ways that differentiate its products from those of competitors and enable it to provide superior service or products. Chapter 11 Flashcards | Chegg.com D. the industry and the competitive environment. Firm infrastructurerefers to how the firm is organized and led by executives. When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy. Mass customization allows a company to offer individually tailored products using the same production resources as mass production. A) categorizes five related advantages for adding value to a firm's products or services. The balanced scorecard enables managers to consider their business from all of the following perspectives except. In assessing its primary activities, an airline would examine A employee training programs. The support activities of a firm include: A) inbound logistics, technology, outbound logistics, sales and marketing, and service. To determine this, a company could study its value chain and business processes to see which points might be automated or be made more efficient, have value added or improve quality, Click here to study/print these flashcards. C) financial analysis and stakeholder perspectives. Doughnut shops buy commodity products (such as flour and grease) and transform them into delectable treats. Journal of Applied Psychology, 96(3), 443456. In many situations, this can be accomplished through carefully writing incentives into contracts. New market entrants: There is not a huge barrier to entry in this field; other cell phone and technology companies have versions of mp3 players. According to Porter (1985), the primary activities are: Inbound Logistics - involve relationships with suppliers and include all the activities required to receive, store, and disseminate inputs. In value chain analysis, you ask at each stage of the value chain, "How can we use information systems to improve operational efficiency and improve customer and supplier intimacy?" D) gains in financial performance and customer satisfaction must often come at a cost of employee satisfaction. Firms leverage their social capital in an effort to create competitive advantages. It could use information systems for sales and marketing data research in order to define a niche market that would bring greater profits. This creates a need for alignment among chain members. Which of the following would be most difficult to assess? B) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement. For example, in the defense industry, the U.S. Army requires one class of weapon simulators to be repaired within eight hours, while another class of items can be repaired and returned within one month. However, the iPhone is a market leader in this category. In addition to PPV matches, ESPN Plus features access to UFC . A system of people, activities, information, and resources involved in creating a product and moving it to the customer. There are many other competitors in the portable mp3 category, but few as widely known. D) outstanding customer service, innovativeness of products, and reputation. Marketing and sales for Randys Donuts in Inglewood, California, is aided by attention-grabbingbuilding. A) uses the capabilities of other companies without being physically tied to those companies. Meanwhile, WestJet has gained an advantage over its rivals by using futures contracts within its procurement process to minimize the effects of rising fuel prices. What Is ESPN Plus? Price, What's Included, and How to Sign up SWOT's focus on the external environment is too broad and integrative. B. the interrelationships among the primary activities of the firm and corporate management. In network economics, the cost of adding a participant to the network is negligible, while the gain in value is relatively much larger. Discuss the ways information systems can be used to improve quality. B) They are not locked into an existing brand image. Explanation: American Harvard Business Professor Michael Porter (born in 1947) proposed that firms should focus on maximizing all the activities in their value chain to achieve a competitive advantage . Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy? D. tangible resources, intangible resources, and top management. Which of the following tools or technologies would you use to improve production precision? This term is sometimes called staff or overhead functions. The result was that Walmart emerged as the first responder in many towns and provided essentials such as drinking water faster than local and federal governments could. Alignmentrefers to creating consistency in the interests of all participants in a supply chain. CHAPTER 3 Flashcards | Quizlet This arrangement creates an information flow that cannot be duplicated through other methods. financial resources, physical resources, and technological resources. How are information systems used at the industry level to achieve strategic advantage? C) making information available to everyone. The conveyor belt used by Krispy Kreme is a technology that creates efficiency and a visual enticement for potential customers. Walmart's continuous replenishment system allows it to: B) provide an efficient customer response system. Directs subordinate managers and staff. The firm also purchases materials in bulk from its suppliers with whom Johnson has long-term contracts. B. supports only individual support activities. B. the relationships among a firm's employees. You've accessed 1 of your 2 free resources. activities needed to support the firm, including the CEO human resource management activities like recruiting, hiring, training, and compensating employees inbound logistics : Steps to align IT with your organization's goals include: identifying your business strategy and goals and breaking these goals into concrete activities and processes; identifying how you measure progress toward these goals; determining how IT can help achieve these goals and improve business processes and activities; and measuring the actual performance of the business. A firm can exercise greater control over its suppliers by having: Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces? T/F The importance of human capital has decreased in recent years. If the individual gyms are franchises, then a network could be used for franchisees to share data and research new sales tactics, etc. A) rare, valuable, mobile, nonsubstitutable. Large chains such as Tim Hortons enjoy low prices in their procurement process because they buy supplies in bulk. The first movers of a disruptive technology typically benefit the most from the technology; and it is rare that fast followers catch up quickly. A value chain charts the path by which products and services are created and eventually sold to customers (Porter, 1985. The emergence of the World Wide Web acted as a disruptive technology for: Which of the following best describes business globalization? A) financial analysis and a firm's reputation. To service these varying requirements efficiently and effectively, Computer Science Corporation (the firm whose supply chains maintain the equipment) must devise adaptable supply chains. B) supports only individual support activities. D) synchronizes the business processes of customers, suppliers, and trading partners. Studies show that about half of a business firm's profits can be explained by alignment of IT with business. B. the ability of an organization to challenge the conventional industry in its industry and market. Former US President Bill Clinton had the doughnuts shipped to the White House regularly. The firm strives to leverage its core competencies worldwide, reduce costs by exploiting location economics, and adapt when efficient to local conditions. A marketing department that promises delivery faster than the production department's ability to produce is an example of a lack of understanding of the. Not really, but the inbound logistics of organic ingredients from a local farmers market makes the Donut Plant in New York City unique. The balanced scorecard provides top managers with a _____________ view of the business, The balanced scorecard developed by Kaplan and Norton helps to integrate. Operationscenters on the production process of a good or service. D. the effectiveness of its lobbying activities. Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis? BPM is business process management, and is the practice of continuously improving business processes. This value chain configuration illustrates the ______________ strategy. D SWOT overemphasizes a single dimension of strategy. The support activities of a firm include: A) sales and marketing, procurement, human resources, and technology. Preston is most likely using a(n) _____________ strategy. Business Horizons, 51, 235243. C) the internal analysis of the firm as well as the external analysis of the industry and competitive environment. C) organization infrastructure, human resources, sales and marketing, and technology. B) the legitimacy and reputation of a firm, D) the efficiency with which a firm utilizes its assets. Supporting business functions refer to business activities in which they only act to support the core functions in operation and do not generate revenue. You are advising the owner of Smalltown Computer, a new, local computer repair store that also builds custom computers to order. B. the interrelationships among the primary activities of the firm and corporate management. At a certain scale of business, Better Bodies could employ globalization to purchase less expensive gym equipment, in a low-cost leadership strategy. What practical steps should a firm use in aligning IT with its goals? UChicago, Massachusetts firm will support startups in Hyde Park lab Examples include all of the following EXCEPT A. negotiating and maintaining ongoing relations with regulatory bodies. Time is money! warns a famous saying. C) criteria for lease versus purchase decisions. Supply of replacement parts is a __________ activity. B) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement. Google essentially views the entire world as one market and assumes that there are no fundamental differences among countries with regard to consumers' preferences. Porter classified those activities in primary and support activities. A firm's social capital is based on A. an employee's individual abilities. D) value chains of its suppliers and customers. ESPN Plus also offers a special discounted bundle for new members that includes a one-year membership and one PPV event for $124.98. C. the internal analysis of the firm as well as the external analysis of the industry and competitive environment. The relative reliability of supply chain activities. tangible resources, intangible resources, and organizational capabilities. B) culture, tangible resources, intangible resources. Franchisers are firms that have their product created, designed, financed, and initially produced in the home country but rely heavily on foreign personnel for further production, marketing, and human resources. C. rarity, path dependency, causal ambiguity, and social substitutability.