internal and external analysis
TRANSCRIPT
Internal and External
Analysis
1SWOT ANALYSIS2PORTERrsquos 5 FORcEs3PEST Analysis4Value Chain Analysis
SWOT ANALYSIS
bull SWOT analysis is a planning tool used to understand the
Strengths Weaknesses Opportunities and Threats involved in a
project or in a business It involves specifying the objective of the
business or project and identifying the internal and external factors
that are supportive or unfavorable to achieving that objective (1)
bull SWOT is often used as part of a strategic planning process SWOT
is an acronym for Strengths Weaknesses Opportunities
Threats
(2)
SWOT ANALYSIS
HISTORYbull The origin of SWOT analysis is credited by Albert Humphrey who led a
research project at Stanford University in the 1960s and 1970s using data
from many top companies
bull Goal of SWOT was to identify why corporate planning failed Humphrey and
the team used the categories ldquoWhat is good in the present is Satisfactory good
in the future is an Opportunity bad in the present is a Fault and bad in the
future is a Threatrdquo Hence they came up with SWOT(3)
MYTH OF SWOTSome researchers reference the 1965 publication ldquoBusiness Policy
Text and Casesrdquo from Harvard University in which a framework is used which closely resembles
a SWOT analysis
Strengths Weaknesses opportunities risks environment amp problems of other
industries The terms SWOT or THREATS is not used so it is myth(3)
SWOT ANALYSIS
PURPOSEbull Reveal your competitive advantages
bull Analyze your prospects for sales profitability and product
development
bull Prepare your company for problems
bull Allow for the development of contingency plans
bull A strategic option such as entering a new market or launching a
new product
bull A opportunity to make an acquisition
bull A potential partnership
bull Project planning and project management
bull An investment opportunity
bull Personal financial planning
bull Personal career development - direction choice change etc
(5)
SWOT ANALYSIS
Advantage amp Limitations
(6)
SWOT ANALYSIS
Advantage amp Limitations
(6)
(6) wwwrapidbicomSWOT
SWOT ANALYSIS
Advantage amp Limitations (7)
SWOT ANALYSIS
Advantage amp Limitations
bull Strengths may not lead to an advantage
bull SWOTrsquos focus on the external environment is
too narrow
bull SWOT gives a one-shot view of a moving target
bull SWOT overemphasizes a single dimension of
strategy
SWOT ANALYSIS
How to bull Set objectives
bull Generate alternative strategies
bull Evaluate alternative strategies
bull Monitor results and
bull Gain commitment among the stakeholders
during each step of this process (7)
Porterrsquos 5 Forces
HISTORYMichael E Porter
bull Born in 1947
bull Professors in Harvard Business School
bull Introduced Porters 5 Forces Model
bull Written 18 books amp over 125 Articles
(8)
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
SWOT ANALYSIS
bull SWOT analysis is a planning tool used to understand the
Strengths Weaknesses Opportunities and Threats involved in a
project or in a business It involves specifying the objective of the
business or project and identifying the internal and external factors
that are supportive or unfavorable to achieving that objective (1)
bull SWOT is often used as part of a strategic planning process SWOT
is an acronym for Strengths Weaknesses Opportunities
Threats
(2)
SWOT ANALYSIS
HISTORYbull The origin of SWOT analysis is credited by Albert Humphrey who led a
research project at Stanford University in the 1960s and 1970s using data
from many top companies
bull Goal of SWOT was to identify why corporate planning failed Humphrey and
the team used the categories ldquoWhat is good in the present is Satisfactory good
in the future is an Opportunity bad in the present is a Fault and bad in the
future is a Threatrdquo Hence they came up with SWOT(3)
MYTH OF SWOTSome researchers reference the 1965 publication ldquoBusiness Policy
Text and Casesrdquo from Harvard University in which a framework is used which closely resembles
a SWOT analysis
Strengths Weaknesses opportunities risks environment amp problems of other
industries The terms SWOT or THREATS is not used so it is myth(3)
SWOT ANALYSIS
PURPOSEbull Reveal your competitive advantages
bull Analyze your prospects for sales profitability and product
development
bull Prepare your company for problems
bull Allow for the development of contingency plans
bull A strategic option such as entering a new market or launching a
new product
bull A opportunity to make an acquisition
bull A potential partnership
bull Project planning and project management
bull An investment opportunity
bull Personal financial planning
bull Personal career development - direction choice change etc
(5)
SWOT ANALYSIS
Advantage amp Limitations
(6)
SWOT ANALYSIS
Advantage amp Limitations
(6)
(6) wwwrapidbicomSWOT
SWOT ANALYSIS
Advantage amp Limitations (7)
SWOT ANALYSIS
Advantage amp Limitations
bull Strengths may not lead to an advantage
bull SWOTrsquos focus on the external environment is
too narrow
bull SWOT gives a one-shot view of a moving target
bull SWOT overemphasizes a single dimension of
strategy
SWOT ANALYSIS
How to bull Set objectives
bull Generate alternative strategies
bull Evaluate alternative strategies
bull Monitor results and
bull Gain commitment among the stakeholders
during each step of this process (7)
Porterrsquos 5 Forces
HISTORYMichael E Porter
bull Born in 1947
bull Professors in Harvard Business School
bull Introduced Porters 5 Forces Model
bull Written 18 books amp over 125 Articles
(8)
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
SWOT ANALYSIS
HISTORYbull The origin of SWOT analysis is credited by Albert Humphrey who led a
research project at Stanford University in the 1960s and 1970s using data
from many top companies
bull Goal of SWOT was to identify why corporate planning failed Humphrey and
the team used the categories ldquoWhat is good in the present is Satisfactory good
in the future is an Opportunity bad in the present is a Fault and bad in the
future is a Threatrdquo Hence they came up with SWOT(3)
MYTH OF SWOTSome researchers reference the 1965 publication ldquoBusiness Policy
Text and Casesrdquo from Harvard University in which a framework is used which closely resembles
a SWOT analysis
Strengths Weaknesses opportunities risks environment amp problems of other
industries The terms SWOT or THREATS is not used so it is myth(3)
SWOT ANALYSIS
PURPOSEbull Reveal your competitive advantages
bull Analyze your prospects for sales profitability and product
development
bull Prepare your company for problems
bull Allow for the development of contingency plans
bull A strategic option such as entering a new market or launching a
new product
bull A opportunity to make an acquisition
bull A potential partnership
bull Project planning and project management
bull An investment opportunity
bull Personal financial planning
bull Personal career development - direction choice change etc
(5)
SWOT ANALYSIS
Advantage amp Limitations
(6)
SWOT ANALYSIS
Advantage amp Limitations
(6)
(6) wwwrapidbicomSWOT
SWOT ANALYSIS
Advantage amp Limitations (7)
SWOT ANALYSIS
Advantage amp Limitations
bull Strengths may not lead to an advantage
bull SWOTrsquos focus on the external environment is
too narrow
bull SWOT gives a one-shot view of a moving target
bull SWOT overemphasizes a single dimension of
strategy
SWOT ANALYSIS
How to bull Set objectives
bull Generate alternative strategies
bull Evaluate alternative strategies
bull Monitor results and
bull Gain commitment among the stakeholders
during each step of this process (7)
Porterrsquos 5 Forces
HISTORYMichael E Porter
bull Born in 1947
bull Professors in Harvard Business School
bull Introduced Porters 5 Forces Model
bull Written 18 books amp over 125 Articles
(8)
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
SWOT ANALYSIS
PURPOSEbull Reveal your competitive advantages
bull Analyze your prospects for sales profitability and product
development
bull Prepare your company for problems
bull Allow for the development of contingency plans
bull A strategic option such as entering a new market or launching a
new product
bull A opportunity to make an acquisition
bull A potential partnership
bull Project planning and project management
bull An investment opportunity
bull Personal financial planning
bull Personal career development - direction choice change etc
(5)
SWOT ANALYSIS
Advantage amp Limitations
(6)
SWOT ANALYSIS
Advantage amp Limitations
(6)
(6) wwwrapidbicomSWOT
SWOT ANALYSIS
Advantage amp Limitations (7)
SWOT ANALYSIS
Advantage amp Limitations
bull Strengths may not lead to an advantage
bull SWOTrsquos focus on the external environment is
too narrow
bull SWOT gives a one-shot view of a moving target
bull SWOT overemphasizes a single dimension of
strategy
SWOT ANALYSIS
How to bull Set objectives
bull Generate alternative strategies
bull Evaluate alternative strategies
bull Monitor results and
bull Gain commitment among the stakeholders
during each step of this process (7)
Porterrsquos 5 Forces
HISTORYMichael E Porter
bull Born in 1947
bull Professors in Harvard Business School
bull Introduced Porters 5 Forces Model
bull Written 18 books amp over 125 Articles
(8)
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
SWOT ANALYSIS
Advantage amp Limitations
(6)
SWOT ANALYSIS
Advantage amp Limitations
(6)
(6) wwwrapidbicomSWOT
SWOT ANALYSIS
Advantage amp Limitations (7)
SWOT ANALYSIS
Advantage amp Limitations
bull Strengths may not lead to an advantage
bull SWOTrsquos focus on the external environment is
too narrow
bull SWOT gives a one-shot view of a moving target
bull SWOT overemphasizes a single dimension of
strategy
SWOT ANALYSIS
How to bull Set objectives
bull Generate alternative strategies
bull Evaluate alternative strategies
bull Monitor results and
bull Gain commitment among the stakeholders
during each step of this process (7)
Porterrsquos 5 Forces
HISTORYMichael E Porter
bull Born in 1947
bull Professors in Harvard Business School
bull Introduced Porters 5 Forces Model
bull Written 18 books amp over 125 Articles
(8)
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
SWOT ANALYSIS
Advantage amp Limitations
(6)
(6) wwwrapidbicomSWOT
SWOT ANALYSIS
Advantage amp Limitations (7)
SWOT ANALYSIS
Advantage amp Limitations
bull Strengths may not lead to an advantage
bull SWOTrsquos focus on the external environment is
too narrow
bull SWOT gives a one-shot view of a moving target
bull SWOT overemphasizes a single dimension of
strategy
SWOT ANALYSIS
How to bull Set objectives
bull Generate alternative strategies
bull Evaluate alternative strategies
bull Monitor results and
bull Gain commitment among the stakeholders
during each step of this process (7)
Porterrsquos 5 Forces
HISTORYMichael E Porter
bull Born in 1947
bull Professors in Harvard Business School
bull Introduced Porters 5 Forces Model
bull Written 18 books amp over 125 Articles
(8)
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
SWOT ANALYSIS
Advantage amp Limitations (7)
SWOT ANALYSIS
Advantage amp Limitations
bull Strengths may not lead to an advantage
bull SWOTrsquos focus on the external environment is
too narrow
bull SWOT gives a one-shot view of a moving target
bull SWOT overemphasizes a single dimension of
strategy
SWOT ANALYSIS
How to bull Set objectives
bull Generate alternative strategies
bull Evaluate alternative strategies
bull Monitor results and
bull Gain commitment among the stakeholders
during each step of this process (7)
Porterrsquos 5 Forces
HISTORYMichael E Porter
bull Born in 1947
bull Professors in Harvard Business School
bull Introduced Porters 5 Forces Model
bull Written 18 books amp over 125 Articles
(8)
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
SWOT ANALYSIS
Advantage amp Limitations
bull Strengths may not lead to an advantage
bull SWOTrsquos focus on the external environment is
too narrow
bull SWOT gives a one-shot view of a moving target
bull SWOT overemphasizes a single dimension of
strategy
SWOT ANALYSIS
How to bull Set objectives
bull Generate alternative strategies
bull Evaluate alternative strategies
bull Monitor results and
bull Gain commitment among the stakeholders
during each step of this process (7)
Porterrsquos 5 Forces
HISTORYMichael E Porter
bull Born in 1947
bull Professors in Harvard Business School
bull Introduced Porters 5 Forces Model
bull Written 18 books amp over 125 Articles
(8)
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
SWOT ANALYSIS
How to bull Set objectives
bull Generate alternative strategies
bull Evaluate alternative strategies
bull Monitor results and
bull Gain commitment among the stakeholders
during each step of this process (7)
Porterrsquos 5 Forces
HISTORYMichael E Porter
bull Born in 1947
bull Professors in Harvard Business School
bull Introduced Porters 5 Forces Model
bull Written 18 books amp over 125 Articles
(8)
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Porterrsquos 5 Forces
HISTORYMichael E Porter
bull Born in 1947
bull Professors in Harvard Business School
bull Introduced Porters 5 Forces Model
bull Written 18 books amp over 125 Articles
(8)
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Porterrsquos Chart
(9)
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Importance of The 5 Forces
(9)
Strategize Competitive advantage Cost advantage Market dominance New product development Contraction Diversification Price leadership Global Re-engineering Downsizing De-layering Restructuring
Measure and monitorstrategy effectiveness
What strategy to use
Basic knowledgeof business strategyamp forces that influencethe decision making
Industry analysis 1) Industry relevance2) Industry players3) Industry structure4) Future changes
How to deal with competition
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Threats of New Entrants
The easier it is for new companies to enter the industry the more cutthroat
competition there will be
Factors that can limit the threat of new entrants are
bull How loyal are the end users
bull How hard is it for the end users to switch and use another product
bull Does it require a large seed capital to enter this industry
bull Do entries to this industry regulated by government
bull How hard is it to gain access to the distribution channels
bull How long does it take for new staff to acquire the necessary skills to do the
work
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Threat of Substitutes
Threats of Substitute in the Porterrsquos theory actually means goods and services that does similar functions
o How many close substitutes are available
o How pricy are the substitutes
o What is the perceived quality of the substitutes
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Rivalry among firms
bull How many close competitors exist in the
industry
bull What are the sizes of your close competitors
bull What is the industry structure Is it a
fragmented consolidated oligopoly or monopoly
industry
bull What is the current industry growth rate
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Bargaining Power of Customers
1 How large are your buyersrsquo company
2 How many companies are there for the buyer to choose from
3 Are the buyers buying a huge volume
4 Do you depend only on a few buyers to sustain your sales
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Bargaining power of Suppliers
bull Are there substitutes for your suppliersrsquo products
bull Do your suppliers serve multiple industries Does the total industry
revenue accounting for only a mall portion of the supplierrsquos total
revenue
bull Do suppliers have the capacity to enter your business
bull Does your company capable to enter the supplierrsquos business (10)
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
PEST ANALYSIS
bull PEST analysis is used to identify the external forces affecting an organisation This is a simple analysis of an organisationrsquos Political Economical Social and Technological environment A PEST analysis incorporating legal and environmental factors (11)
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
PEST is AN ACRONYM
bull P for POLITICAL FACTORS
bull E for ECONOMIC FACTORS
bull S for SOCIAL FACTORS
bull T for TECHNOLOGICAL FACTORS
(12)
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
POLITICAL FACTORS
bull Trade agreements tariffs or restrictions
bull Tax levies and tax breaks
bull Type of government regime example communist
democratic dictatorship
bull Voluntary codes and practices
bull Market regulations
(13)
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
ECONOMIC FACTORS
bull Marketers need to consider the state of a trading
economy in the short and long-terms This is especially
true when planning for international marketing
bull Overseas economies and trends
bull General taxation issues
bull Market routes and distribution trends
(13)
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
SOCIAL FACTORS
The social and cultural influences on business vary from
country to country
It is important that such factors are observed
bull Lifestyle trends
bull Demographics
bull Consumer attitudes and opinions
bull Brand company technology image
bull Consumer buying patterns
bull Fashion and role models
bull Ethnicreligious factors
(13)
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
TECHNOLOGICAL FACTORS
bull Competing technology development
bull Associateddependent technologies
bull Replacement technologysolutions
bull Manufacturing maturity and capacity
bull Information and communications
bull Technology is vital for competitive advantage and is a
major driver of globalization
(13)
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Advantages
bull Advantages
bull Provides a simple and easy-to-use framework for your analysis
bull Involves cross-functional skills and expertise
bull Helps to reduce the impact and effects of potential threats to your
organization
bull Aids and encourages the development of strategic thinking within
your organization
bull Provides a mechanism that enables your organization to identify and
exploit new opportunities
bull Enables you to assess implications of entering new markets both
nationally and globally
(14)
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Disadvantages
bull Disadvantages
bull Users can oversimplify the information that is used for making decisions
bull The process has to be conducted regularly to be effective and often organizations do
not make this investment
bull Users must not succumb to paralysis by analysis where they gather too much
information and forget that the objective of this tool is the identification of issues so
that action can be taken
bull Organizations often restrict who is involved due to time and cost considerations This
limits the techniques effectiveness as a key perspective may be missing from the
discussions
bull Users access to quality external information is often restricted because of the cost
and time needed to collate it
bull Assumptions often form the basis for most of the data used making any decision
made based on such data subjective
(14)
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Limitations
bull Collecting enormous amounts of relevant data from the right sources
becomes a bit of a problem especially since most of the pertinent
data must be collected from external agencies This
makes PEST analysis not only time consuming but costly as well
Also getting the latest data and keeping the analysis updated with it
becomes a problem
bull Oftentimes the factors mentioned in the analysis are based more on
assumptions and less on actual facts An analysis based on
unfounded assumptions can lead to planning disasters So
itrsquos important to device some method to cross-verify whether the
factors mentioned in the PEST analysis
(15)
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Value-Chain Analysis
bull Value-chain analysis
ndash a strategic analysis of an organization that
uses value creating activities
bull Value is the amount that buyers are willing
to pay for what a firm provides them and is
measured by total revenue
(16)
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Primary activities
ndash contribute to the physical creation of the
product or service its sale and transfer to the
buyer and its service after the sale
ndash inbound logistics operations outbound
logistics marketing and sales and service
(16)
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Support activities
bull activities of the value chain that either add value
by themselves or add value through important
relationships with both primary activities and
other support activities
bull procurement technology development human
resource management and general
administration
(16)
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
The Value Chain
(17)
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
TYPES OF FIRM ACTIVITIES
bull Primary activities
Those that are involved in the creation sale and transfer of products
(including after-sales service)
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service and support
(18)
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
TYPES OF FIRM ACTIVITIES
bull Support Activities
Those that merely support the primary activities
Human resources
Tech development
Procurement
(18)
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
USES OF VALUE CHAIN
ANALYSISbull The sources of the competitive advantage of a firm can be seen
from its discrete activities and how they interact with one another
bull The value chain is a tool for systematically examining the activities
of a firm and how they interact with one another and affect each
otherrsquos cost and performance
bull A firm gains a competitive advantage by performing these activities
better or at lower cost than competitors
bull Helps you to stay out of the ldquoNo Profit Zonerdquo
bull Presents opportunities for integration
bull Aligns spending with value processes
(19)
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Advantages Of Value Chain
Analysisbull A big advantage is that the value chain is a very flexible strategy tool
for looking at your business your competitors and the respective
places in the industryrsquos value system
bull The value chain can be used to diagnose and create competitive
advantages on both cost and differentiation
bull The value chain is well known and has been a mainstay of strategy
teaching in business schools for the last 20 to 25 years The
book Competitive Advantage was published in 1985
bull It can be adapted for any type of business ndash manufacturing retail or
service big or small
(20)
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
Disadvantages Of Value Chain
Analysisbull Itrsquos very strengths of flexibility mean that it has to be adapted to a particular
business situation and that can be a disadvantage since to get the best
from the value chain itrsquos not ldquoplug and playrdquo
bull The format of the value chain laid out in Porterrsquos book Competitive
Advantage is heavily oriented to a manufacturing business and the
language can be off-putting for other types of business
bull The scale and scope of a value chain analysis can be intimidating It can
take a lot of work to finish a full value chain analysis for your company and
for your main competitors so that you can identify and understand the key
differences and strategy drivers
bull Many people are familiar with the value chain but few are experts in its use
(20)
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
References
1 httpsrapidbicomswotanalysisVowD6Pl97cc
2 httpwwwbusinessnewsdailycom4245-swot-analysishtml
3 (3) httpswebviucartriSWOT20Analysispdf
4 httpwwwbusinessballscomswotanalysisfreetemplatehtm
(5) wwwrapidbicomSWOT
bull (6) wwwrapidbicomSWOT
bull (7) httpsrapidbicomswotanalysisVowD6Pl97cc
bull (8)
httpswwwgooglecompksearchq=micheal+e+porterampoq=micheal+e+porterampaqs=chrome69i574639j0j7ampsour
ceid=chromeampes_sm=0ampie=UTF-8
bull (9) httpvisuallyporterE28099s-5-forces-model
bull (9)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=10ampcad=rjaampuact=8ampsqi=2ampved=0ahUKE
wib4uSHsJPKAhVRc44KHar-
BD8QFghFMAkampurl=http3A2F2Fstrategysjsuedu2Fsimonrodan2Fslides1892FPorterpptampusg=AFQj
CNEzpz_Da9Q1P1mEVVrIGzgIfZAIowampbvm=bv110151844dc2E
bull (18) httpwwwslidesharenetmonishrmvalue-chain-analysis-23849383
bull (19)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=6ampcad=rjaampuact=8ampved=0ahUKEwi438q
5upPKAhWDSI4KHaDNCkgQFgg2MAUampurl=http3A2F2Fhigheredmheducationcom2Fsits2Fdl2Ffree
2F00780293172F9288032FChap003pptampusg=AFQjCNExHNmNqFZ_UiBoF2RQR4tTeDl0eQ
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
References
bull (10) httpwwwslidesharenetmayurkhatri5porters-five-forces-26443199from_action=save
bull (11) httpwwwslidesharenetpretamsarkarpest-analysis-13612137
bull (13)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=8ampcad=rjaampuact=8ampved=
0ahUKEwiFxfvHtZPKAhUIB44KHR2IDBMQFggMAcampurl=http3A2F2Fbusinessteswikispace
scom2Ffile2Fview2FPESTLE2Banalysispptampusg=AFQjCNFufyclxi1r5sGzX8EzFtnkv2zz
5w
bull (14) httpwwwfree-management-ebookscomfaqstpestle-09htm
bull (15) httpwwwbrighthubpmcomproject-planning100700-limitations-of-a-pest-analysis
bull (16)
httpswwwgooglecompkurlsa=tamprct=jampq=ampesrc=sampsource=webampcd=4ampcad=rjaampuact=8ampved=
0ahUKEwi438q5upPKAhWDSI4KHaDNCkgQFggtMAMamprl=http3A2F2Fwwwprenhallcom
2Fdivisions2Fbp2Fapp2Fmarakas2Fsad2F1e2Fppt2Fch03pptampusg=AFQjCNGB-
pJWE0kFLZC3qh9oi2Gs25ZxpA
bull (17)
httpswwwgooglecompksearchq=the+value+chainampsource=lnmsamptbm=ischampsa=Xampved=0ah
UKEwj1psj8u5PKAhXKBI4KHVHyD8cQ_AUIBygBampbiw=1360ampbih=599imgrc=NH22_FOAcF6gX
M3A
bull (20) httpwwwdifferentiateyourbusinesscoukthe-advantages-disadvantages-of-value-chain-
analysis
