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 Value Chain Analysis

 Supply Chain Management

 Growth Strategies
 Competitive Strategies
 Life Cycle Strategies
 Stability Strategies
 A strategy tool used
to analyze internal firm activities
 Goals:
 recognize most valuable activities
 gain comparative advantage
A. Supply
• formerly termed as procurement
• responsible for:
1. Identifying material and services needs
2. Locating and selecting suppliers
3. Acquiring the needed materials, services
and equipment
4. Monitoring inventory stock
5. Tracking supplier performance
I. Sourcing And Ordering
1. Specify the need
2. Analyze possible sources of supply
3. Ask potential suppliers
4. Compare and evaluate submitted
5. Prepare, place, follow up and expedite
6. Confirm order if in good condition
7. Invoice clearing then payment
II. Inventory Management
• Raw materials
• Work in process
• Finished goods
• Maintenance, repair and operating
B. Production/Operations
 consists of manufacturing and

Input Transformational
Process Output
C. Logistics Circle


Delivery Scheduling

Transportation Dispatching
D. Marketing and Sales
 through advertisement
 study the purchasing pattern of
 Adopted by organization to
increase volume and turnover
 Internal or Integrative
 Internal Growth Strategy
 Market penetration
 Market development
 Product development
 Diversification
 Designed to deal with
 Long-term action plans
 Comparison of strength and
weaknesses with competitors
 Types
• Low-cost Leadership Strategy
▪ offer product and services at lowest cost

• Broad Differentiation Strategy

▪ provide products that are not offered by

• Best-cost Provider Strategy

▪ low cost with unique product or service
• Focus/market-niche Lower Cost Strategy
▪ Limited market segment with low cost

• Focus/market-niche differentiation
▪ Limited market segment with unique
featured products
 Innovation strategy
 Introduction of new and highly differentiated
product or services
 Operational effectiveness strategy
 Improve organizational performance through:
▪ Increase work force productivity
▪ Streamlining wasteful and inefficient processes
▪ Better facilities and equipment maintenance
 Economies of scale
 High volume of produce product to lower cost
 Technology strategy
 Use of technology for efficient operations
 Company do not venture into new markets
or introduce new products.
 Reasons for businesses to adopt this
 It plans to consolidate
 When the economy is in recession
 It has too much debt
 It’s operating in an industry which has reached
maturity phase
 When the gains from expansion plans are less than the
costs involved for such expansion
 Organization aims at reducing its one
or more business operations with the
view to cut expenses
 Modes:
a. Liquidation
Business is terminated and assets sold
b. Divestment
Stockholders sell or set a company as
a separate corporation
c. Turnaround Strategy

Production And Turnaround

Operation Strategy Infrastructure

Climate And Production

Culture And Services