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Q1. Analyze the value chain strategies of the firms and identify the source of competitive advantage.
(total 2 pages, 1 page per company)
What we have to do:
Value chain analysis consists of primary and supportive activities and by analyzing these activities we
have to tell what is the competitive advantage to that company. For example they would be having
completive advantage in inbound logistics operation outbound logistics etc etc
We have to know
Primary activity
Inbound logistics
Operations
Activities necessary to convert inputs provided by inbound logistics into final product form
Machining
Packaging
Assembly
Equipment maintenance
Outbound logistics
Activities involved with collecting, storing and distribution of final product to consumers
Finished goods warehousing
Material handling
Order processing
Marketing and sales
AD&SP
Distribution channel selection and management
Sales force management
Service
Installation
Repair
Training
Adjustment
Supportive
Procurement
Activities completed to purchase inputs e.g. raw material, supplies and fixed assets
Technological Development
Activities completed to improve a firms product and processes. e, g.
Process equipment
Basic research and product design
Servicing procedures
HRM
Recruitment
Hiring
Training
Developing
Compensating
Firm Infrastructure
General management
Planning
Finance
Accounting
Legal support
Q2: Identify the corporate level strategy of the firms. (Max 2 pages)
The primary reason a firm uses a corporate level strategy is to become more diversified to create
additional value.
Lucky cement
Diversification: Acquisition of ICI Pakistan Limited and investment in the 660 MW Coal Based Power
Plant.
Expansion: Investment outside Pakistan, which includes the Cement Grinding Facility in Iraq and Green
Field Cement Plant in DR-Congo
An example of corporate-level strategy: The February 2011 announcement an alliance between
Microsoft and Nokia Corp. The alliance involve Nokia will produce phones running Windows Phone 7, a
recognition that Nokias investment in its own operating system has failed. The alliance gives Microsoft
access to the worlds largest phone maker and its huge mindsharein many developing nations a
mobile phone is known as a Nokia. The deal with Microsoft gives both Nokia and Microsoft a route to
the future in the smart-phone market.