Michael Porter described Value chain as the activities which a firm carries out in order to come up with a quality product that meets the consumer’s needs. Such activities include‚ research and development‚ product design‚ production of the product‚ marketing and selling the finished product to potential customers‚ distribution management and customer service which may include after sale services like repair and maintenance (Institute of Management Accountants‚ 1996). Michael Porter further asserts
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significant and well recognized than others in this field. These are iconic theories of Henry Mintzberg and Michael Porter who argue differing views on the most effective strategic management approach for an organization. Mintzberg (1987) suggests an ’emergent’ approach is more effective while Porter (1979) emphasizes a very much ’intended’ approach. The views of both Mintzberg and Porter have been the calling point for many organizations in their strategic management approach but there is ongoing deliberation
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firms for the purpose of determining where competitive advantages lie. Developed in the early 1980s by Harvard Business School Professor Michael Porter in his book Competitive Advantage‚ the value chain consists of two main components: primary activities and secondary activities. A generic‚ firm specific value chain is shown in figure 1. Figure 1: Porter Value Chain‚ 1985 Support Activities: These consist of activities that do not directly produce goods or services. Infrastructure activities
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References: 1 Griffiths‚ S.B. (1963) Sun Tzu The Art of War‚ Oxford University Press‚ Oxford. 2 Porter‚ M.E. (1980) Competitive Strategy. Techniques for Analyzing Industries and Competitors‚ Free Press‚ New York‚ NY. 3 Oster‚ S.M. (1994) Modern Competitive Analysis‚ Oxford University Press‚ New York. 4 The Boston Consulting Group (2000) New Perspectives
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activities they will be able win new business‚ increase customer retention‚ differentiate themselves from the competitors and generate positive publicity and media opportunities due to media interest in ethical business activities. In this article‚ Michael Porter and Mark Kramer propose a fundamentally new way to look at the relationship between business and society that does not treat corporate growth and social welfare as a zero-sum game. They introduce a framework allows business to identify the social
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industrial employment. Bextex Ltd.was incorporated in Bangladesh as a Public Limited Company with limited liability on 8 March 1994 and commenced commercial operation in 1995. This company applying porter Diamond theory to established their business. This analysis is the most important factor of porter diamond. These are Factor conditions‚ Demand conditions‚ Related and supporting industries‚ Firm strategy‚ structure and rivalry‚ Government‚ Chance. When they are satisfied then they are going to establish
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Unit 3 Assignment 2 A Summary of M.E. Porter and M. R. Kramer’s article “Creating Shared Value” Michael G. Castro Capella University MBA6008 – Global Economic Environment Professor Hidsell January 27‚ 2013 Creating shared value (CSV) is a powerful concept that many companies used‚ ultimately‚ being used as a strategy in developing the future market while also strengthening economies‚ the marketplace‚ communities and corporate funds. In reading this article‚ I initially thought this
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Louis Vuitton and Gucci to deliver a competitive advantage. Does the advantage come only from the brand name or there are other advantages? (5) Louis Vuitton (6) Gucci (7) The VALUE CHAIN AND THE VALUE SYSTEM were developed by Professor Michael Porter. The concept of value added can be used to develop company ’s sustainable competitive advantage. Like most of the organizations LV consists of activities that link together to develop the value of the business. The VALUE CHAIN is used for developing
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privatization and globalization leading to difference in company’s strategies. A strategy can be defined in many ways and has many different viewpoints. This article aims to explain and critically evaluate the approaches of Jay Barney and Michael E. Porter‚ two leading strategy theorists‚ in-turn explaining the basis leading to the difference. What is Strategy & Competitive Advantage? Strategy is the creation of unique and valuable position involving a different set of activities.1 A firm
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customer value‚ creating customer value‚ delivering customer value‚ capturing customer value‚ and sustaining customer value. To help a company identify the ways to create more customer value‚ Michael Porter of Harvard proposed the Value Chain as shown in the next page. As you can see in the diagram‚ Porter separates a business system into a series of value generating activities. Those activities are sequence and found to be common in a wide range of firms. There are two main groups of activities‚ including
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