武漢理工大博導(dǎo)秦遠建先生的戰(zhàn)略管理課件

簡介StrategicManagementProfessorPh.D.QinYuanjian(秦遠建)ManagementSchoolWuhanUniversityofTechnology武漢理工大學(xué)管理學(xué)院P.C:430070TelH)MobilPhone略管理Chapter1:AnIntroductionToStrategicManagementSTRATEGYSection1:WhatisStrategyInGreece:

Strategosmeansartsandsciencethatageneralcommandanddirectarmy.InAncientChinaBesiegeWeirescueZhaoPretendtoadvancealongonepathwhilesecretlygoingalonganother;doonethingundercoverofanother.ClassificationofStrategyMacrolevelEnterpriselevelNationalEconomyLocalEconomyIndustrialEconomyCorporateStrategySBU’sStrategyFunctionalStrategyTheThreeLevelsofStrategyCorporateSBUsFunctionsWhichbusinessestobein？

Howtorunthem?Thewayacompanycreatesvaluethroughtheconfigurationandcoordinationofitsmulti-marketactivities.CorporateStrategyis?AddresstheQuestions？Howtoachievesustainablecompetitiveadvantageingivenproduct/marketWhereshouldwecompete？（Whichmarkets，andwhichsegmentsshouldweconcentrateon？）CompetitiveStrategyWhatproductsshouldwecompetewith？Howwillwegainsustainablecompetitiveadvantageinthesechosenmarkets？?123isconcernedwithinterpretingtheroleofthefunctionordepartmentindeliveringthecompetitivestrategyFunctionalstrategyMarketingstrategyFinancialstrategyPersonnelstrategyAndsoforthEveryCompetitiveStrategyCanbeTranslatedintoCongruentXStrategiesSection2:DefinitionsofStrategyKennethR.AndrewsH.I.AnsoffH.MintzbergOurdefinitionKennethR．Andrews’DefinitionTheConceptofCorporateStrategy,1971Strategyistarget,intent,purpose,andthemodelofwhichafirmformulatesmainpoliciesandplaninordertoachievingthetarget.Themodeldefinesthebusinessscopewhichthefirmisdoing,andshoulddo.Themodelalsodefinesthebusinesstypewhichthefirmisin,andshouldbein.H.Igor.Ansoff’DefinitionCorporateStrategy,1965Thestrategyisacommonbusinesslinethroughoutthefirm’sbusiness,productsandmarket.Itdefinesthebasicnatureofthebusinessthatafirmisdoing,andplanstodo.SeeMoreFourElementsofStrategyMarketandProductsGrowthVectorCompetitiveAdvantageSynergy:Totaloutcomearemorethansumofallparts.UnderstandingSynergySupposeOi—CostofProductiSi–SalesofProducti(ROI)--ReturnonInvestmentSupposeROIofCompanyi’productPiisasfollowROI=Si-OiIiST=S1+S2+S3+…+SnOT=O1+O2+O3+…+OnIT=I1+I2+I3+…+In(ROI)T=ST-OTITSS=STIs≤ITOs≤OTScaleEffect(ROI)S＞(ROI)TST，OT，ITisSumofSmallcompany’ssales,costandinvestmentSs，Os，IsSales,costandinvestmentofbigfirmSupposeTypeofSynergySalesSynergy:fromsharebrand,channelOperatingSynergyInvestmentSynergyManagementSynergyH.Mintzberg’sDefinitionTheRiseandFallofStrategicPlanning,1994PlanPloyPatternPositionPerspectiveDefinitionofStrategyAstrategyisanintegratedandcoordinatedsetofcommitmentsandactionsdesignedtoexploitcorecompetenciesandgainacompetitiveadvantage.Section3:StrategicManagementProcessStrategyFormulationStrategyImplementationSeeDetailEnvironmentConditionStrategicIntentStrategicMissionStrategyFormulationStrategyImplementationCorporateLevelStrategyBusinessLevelStrategyOrganizationalStructureandControlsCorporateGovernanceStrategicCompetitivenessAbove-AverageReturnsfeedbackStrategicManagementProcessChartPerspectivesandEnterpriseCultureVisionMissionGoalsSWOTStrategyFormulationAlternativesSelectionStrategicPlanStrategyImple-mentationStrategicControlFeedbackPerformanceStrategicManagementChapter1AnIntroductiontoCorporateStrategyChapter2TheExternalEnvironmentChapter3TheInternalConditionChapter4CorporateLevelStrategyChapter5AcquisitionandRestructuringStrategyChapter6BusinessLevelStrategyChapter7CooperativeStrategyChapter8CorporateGovernanceChapter9OrganizationalStructureandControlsChapter10CorporateEntrepreneurshipandInnovationTHENEEDFORSTRATEGYChapter1GlobalizationCompetitionPressuretoChangePhysicalresourcesHumanresourcesInformationresourcesWorldmarketCorebusinessesOutsourcingBPRTechnologyandTechnologicalChangesRapidtechnologicalchangeRapidtechnologydiffusionsDramaticchangesininformationtechnologiesIncreasingimportanceofknowledgeTheCompetitiveLandscapeTheGlobalEconomyPeople,goods,services,andideasmovefreelyacrossgeographicbordersSignificantopportunitiesemergeinmultipleglobalmarketsMarketsandIndustriesbecomemoreinternationalizedTwomodelsAfirmisviewedasabundleofmarketactivitiesandabundleofresources.(inthelesson)MarketactivitiesareunderstoodthroughapplicationoftheI/Omodel.Thedevelopmentandeffectiveuseofafirm’sresources,capabilities,andcompetenciesisunderstoodthroughapplicationoftheresources-basedmodel.Combinationofthetwomodels,firmscanincreasetheprobabilityofachievingstrategiccompetitivenessandearningabove-averagereturns(AARs).TheI/OModelofAARsTheexternalenvironmentwasthoughttobetheprimarydeterminantofstrategiesfirmsselectedtobesuccessful.Industrychosenhasastrongerinfluenceonthefirm’sperformancethandothechoicesmanagersmakeinsidetheirorganizations.TheExternalEnvironmentThegeneralenvironmentTheindustryenvironmentThecompetitiveenvironment1.Studytheexternalenvironment,especiallytheindustryenvironment.AnAttractiveIndustryAnindustrywhosestructuralcharacteristicssuggestAARsStrategyFormulationSelectionofastrategylinkedwithAARsinaparticularindustryAssetsandSkillsAssetsandskillsrequiredtoimplementachosenstrategyStrategyImplementationSelectionofstrategicactionslinkedwitheffectiveimplementationofthechosenstrategySuperiorReturnsEarningofAARs2.LocateanindustrywithhighpotentialforAARs.3.IdentifythestrategycalledforbytheattractiveindustrytoearnAARs.4.Developoracquireassetsandskillsneededtoimplementthestrategy.5.Usethefirm’sstrengthstoimplementthestrategy.TheI/OModelTheR/BModelofAAREachorganizationisacollectionofuniqueresourcesandcapabilitiesthatprovidesthebasisforitsstrategyandistheprimarysourceofitsreturns.Thedifferencesinfirm’sperformancesacrosstimearedrivenprimarilybyorganization’suniqueresourcesandcapabilitiesratherthanbyanindustry’’sstructuralcharacteristics.Resourcesmaynotbehighlymobileacrossfirms.Thedifferencesinresourcesformthebasisofcompetitiveadvantage.ResourcesInputsintoafirm’sproductionprocess1.Identifythefirm’’sresources.Studyitsstrengthsandweaknessesascomparedtothoseofcompetitors.CapabilityCapacityofanintegratedsetofresourcestointegrativelyperformataskoractivityCompetitiveAdvantageAbilityofafirmtooutperformitsrivalsAnAttractiveIndustryAnindustrywithopportunitiesthatcanbeexploitedbythefirm’sresourcesandcapabilitiesStrategyFormulation&ImplementationStrategicactionstakentoearnAARsSuperiorReturnsEarningofAARs2.Determinethefirm’’scapabilities.Whatdothecapabilitiesallowthefirmtodobetterthanitscompetitors？？3.Determinethepotentialofthefirm’sresourcesandcapabilitiesintermsofacompetitiveadvantage.4.Locateanattractiveindustry.5.Selectastrategythatbestallowsthefirmtoexploititsresourcesandcapabilitiesrelativetoopportunitiesintheexternalenvironment.TheR/BModelStrategicIntentStrategicintentistheleveragingofafirm’sinternalresources,capabilities,andcorecompetenciestoaccomplishthefirm’’sgoalsinthecompetitiveenvironment.Strategicintentimpliesasignificantstretchofanorganization’’sresources,capabilities,andcorecompetencies.Strategicintentexistswhenallemployeesandlevelsofafirmarecommittedtothepursuitofaspecificperformancecriterion.Itseemslikeadream,unrealisticgoal,imagination.ExamplesofExpressionTobecomeahigh-performancemultinationalenergycompany—notthebiggest,butthebest.(UnocalCorporation)Tobethetopperformanceineverythingthecompanydoes.(PhilipsPetroleumCompany)TocatchupwithandbeatCaterpillar.(Komatsu’s)TobeatXerox.(Canon)TobecomesecondFord.(Honda)StrategicMissionThestrategicmissionisastatementofafirm’sunique’’spurposeandthescopeofitsoperationsinproductandmarketterms.Insomefirms,missioniscalledvision.ExamplesofExpressionToputacarineveryhome.(Ford)Acomputerineveryhome.(Apple)Acomputeroneverydesk,andeveryhome,runningonMicrosoftsoftware.(BillGates)Portablecommunications.(Motorola)IntentandMissionStrategicIntentWinningcompetitivebattlesthroughdecidinghowtoleverageresources,capabilities,andcorecompetenciesStrategicMissionAnapplicationofstrategicintentintermsofproductstobeofferedandmarketstobeservedStrategicObjectivesProfitability:Productivity:MarketStatus:R&D:OrganizationalChange:HumanResourcesSocioResponsibilityMSAMS--AbsoluteMSRMS--RelativeMSSalesoftheindustryAMS=SalesofthecompanyX100%SalesofthelargestoneRMS=SalesofthecompanyX100%numeratorisunchangedDenominator:ifthecompany’ssalesisthebiggest,thedenominatormustbethesecondone.ObjectiveSystemReturnonCapital12%ReturnonSales8%TurnoverRateofCapital1.5ProfitRevenue3mRevenueTotalCapital2mFixedAssetsCurrentAssetsSalesCostFixedCostVariableCostProfit&Tax×÷÷FixedCostVariableCostProfit&TaxTheIdeasofStrategicManagement1.TheIdeaofAdaptingEnvironment2.TheIdeaofCompetitiveAdvantage3.TheIdeaofReengineering4.TheIdeaofStrategicAlliance5.TheideaofOrganizationLearning1.AdaptingEnvironmentGlobalizationNetworkPhysicalResourcesHumanResourcesInfo.ResourcesInternetWorldwideMarketGlobalProcurementGlobalLogistics2.TheIdeaofCompetitiveAdvantageMichaelE．Porterputforwardtotheconcept:itisfromlowcostordifferentiation.Theadvantagescancomefrominternalandexternal.Basedonexternalconditioninclude:naturalenvironment,naturalresources,transportation,informationcommunication,economicbase,publicrelation.Formedbyinternal：decisionmakingabilityoftopmanagement,innovationabilityoftechnicianandengineers,marketingabilityofmarketer,competenceofemployee.3.TheIdeaofReengineeringCoreBusinessCustomerOrientationOrganizationFlatEnvironmentchangeBPRCompetitiveAdvantageResourcesFocusonCompetitionPressureVarietyofNeedsNetworkBPRBPRNothingchangedexceptintoday’ssociety.change4.TheIdeaofStrategicAllianceR．Coasesaid：：therearetwosystemscanbeusedtoconfigurationandcoordinationresources:Throughmarket:byuseofthepriceasatooltoaccomplishasetofmarkettransactions.Throughorganization:acoordinatorwithinorganizationtodirectproduction.Bothmechanismscostmoney.So,whichoneisuseddependsonwhichhasthelowercost.Whetheracompanywillexpandorreduceitsbusinessesdependonthesaveoftransactioncost.5.TheideaofOrganizationLearningTheFifth

Discipline–ArtsandPracticesofTheLearningOrganization(Peter

Senge,1990)Tobringpeople’screativityintoplayisthekeysuccessfulfactorinthe21st.Itisalsothekeypointofthemanagementefforts.Organizationlearningisanunremittingprocess.Itistheprocesswhichanorganizationceaselesslyacquirelore,andpassloreeachotherintheorganization,andcreatenewlorebyvariouswaysandmannersinordertoboostuporganizationalabilitiesandimproveorganizationalbehaviorandperformance.ThreeKeyPointsofOrganizationLearning：ThreeKeyPointsofOrganizationLearning1.Theorganizationcanceaselesslyacquireloreandaccumulatelore2.Theorganizationcanpassloreeachotherintheorganization3.TheorganizationcancreatenewloreBystudyingtheinternalenvironment,FirmsdetermineWhattheycandoBystudyingtheexternalenvironment,FirmsidentifyWhattheymightchoosetodoGeneralExternalEnvironmentalAnalysisIndustryEnvironmentAnalysisChapter2TheExternalEnvironmentGeneralEnvironmentCompetitorEnvironmentIndustryEnvironmentEconomicDemographicSocioculturalPolitical/LegalGlobalTechnologicalGeneralEnvironmentThegeneralenvironmentiscomposedofelementsinthebroadersocietythatcaninfluenceanindustryandthefirmswithinit.Theindustryenvironmentisthesetoffactors–thethreatofnewentrants,suppliers,buyers,productsubstitutes,andtheintensityofrivalryamongcompetitors–thatdirectlyinfluencesafirmanditscompetitiveactionsandresponses.DefinitionsofgeneralandindustryenvironmentTheGeneralEnvironment:Segments&ElementsDemographicSegmentPopulationsizeAgestructureGeographicdistributionEconomiccycleInterestandInflationratesTradedeficitsorsurplusesBudgetdeficitsorsurplusesAntitrustlawsTaxationlawsDeregulationphilosophiesWomenintheworkforceWorkforcediversityAttitudesaboutqualityofworklifeProductinnovationsProcessinnovationsApplicationsofknowledgeEconomicSegmentPolitical/LegalSegmentSocioculturalSegmentTechnologicalSegmentGlobalSegmentImportantpoliticaleventsCriticalglobalmarketsEthnicmixIncomedistributionPersonalsavingratesBusinesssavingratesGrossdomesticproductLabortraininglawsEducationalphilosophiesandpoliciesConcernsofenvironmentShiftsinwork&careerpreferancShiftsinpreferencesinproductsandservicecharacteristicsFocusofprivateandgovern-mentsupportedR&DexpenditurNewcommunicationtechnologyNewlyindustrializedcountriesDifferentculturalandinstitu-tionalattributesEconomicCycleReviveBoomStagnancyCrisisABReviveBoomWeakSoftLandfallComponentsoftheExternalAnalysisIdentifyingearlysignalsofenvironmentalchangesandtrendsDetectingmeaningthroughongoingobservationsofenvironmentalchangeandtrendsDevelopingprojectionsofanticipatedoutcomesbasedonmonitoredchangesandtrendsDeterminingthetimingandimportanceofenvironmentalchangesandtrendsforfirm’sstrategiesandtheirmanagementScanningMonitoringForecastingAssessingExchangeandCommunicationofCross-culturesChinaNotdirectlymentionkeypointAskquestionsorhaverequirementsbyasubtlewayPraisinggroupSayingwordstoboostharmoniousSomethinghavenotbeenexpressarealsoveryimportantUsuallynottosay“No”，insteadofchangingothertopicorgiveablurryanswerHavingaexpressionforthemostimportantthinginthelastGuangxiisthefirstthinginall—firstlydiscussedtopicisaboutprivatethingsbeforediscussingbusinessSynthesizingdifferentideas，，struggletobeconsistentPersonandmindcannotbeseparatedDumbnessdoesnotmeandisagreeAmericanDirectlymentionkeypointBluntlydiscussingrequirementsandproblembeingfacedPraisingindividualPreciselysayingwhatonewantstosayWhatonesayisthemostimportantDirectlysay““No””HavingaexpressionforthemostimportantthinginthebeginningRulesarethemostimportant，，firstlydiscussingbusinessthanprivateMakingideasdiversely，struggletohavethebestonePersonandmindcanbeseparatedDumbnessmeansdisagreeIndustryEnvironmentAnalysisAnindustryisagroupoffirmsproducingproductsthatareclosesubstitutes.Theindustryenvironmentisthesetoffactors–thethreatofnewentrants,suppliers,buyers,productsubstitutes,andtheintensityofrivalryamongcompetitors––thatdirectlyinfluencesafirmanditscompetitiveactionsandresponses.IndustryenvironmenthasamoredirecteffectonstrategiccompetitivenessandAARs.TheFiveForcesModelofCompetitionIndustryCompetitorsTheThreatofEntryAbsolutecostadvantagesGovernmentpolicyEconomiesofscaleCapitalrequirementsBrandidentitySwitchingcostsAccesstodistributionExpectedretaliationTheThreatofSubstituteRelativeprice/performanceSwitchingcostsBuyerpropensitytoSupplierPowerSupplierconcentrationImportanceofvolumetosupplierDifferentiationofinputsImpactofinputsoncostofdifferent．．Switchingcostsofsupplier/firmsPresenceofsubstituteinputsTheDegreeofRivalryIndustrygrowthProductdifferencesBrandidentitySwitchingcostExitbarriersInformationalcomplexityBuyerPowerBargainingleveragePricesensitivityBuyerconcentrationPrice/TotalPurchasesBuyervolumeImpactonqualityBuyerinformationProductdifferencesBuyerswitchingcostBrandidentitySubstituteproductAbilitytobackwardint.ThreatofNewEntrantsThelikelihoodthatfirmswillenteranindustryisafunctionoftwofactors:BarrierstoentryTheretaliationexpectedfromcurrentindustryparticipantsBarrierstoEntryEconomiesofScaleExperienceCurveProductDifferentiationCapitalRequirementsSwitchingCostsAccesstoDistributionChannelsCostDisadvantagesIndependentofScaleGovernmentPolicyExpectedRetaliationUnitcosttendstodeclinefollowingthewaywithfixedratiowhenaccumulatedproductionincrease.ExperienceCurveAccumulatedProductionUnitCostCn=C1n-λλAccumulatedProductionUnitCostC2n=kCnSourcesofExperienceExperienceaccumulatingLearningApplicationsoftheExperienceCurvePredictcostmodeGuidepricingdifferenceActualForecastPriceCostPriceCostExitBarrierSpecializedassetsFixedcostsofexit(e.g.laboragreements)Strategicinterrelationships(mutualdependencerelationships)Emotionalbarriers(fearforone’scareer)GovernmentandsocialrestrictionsIntensityofRivalryAmongCompetitorNumerousorEquallyBalancedCompetitorsSlowIndustryGrowthHighFixedorStorageCostLackofDifferentiationorLowSwitchingCostsCapacityAugmentedinLargeIncrementsDiverseCompetitorsHighStrategicStakesHighExitBarriersStrategicGroupsMichaelS.Hunt,Competitioninthemajorhomeapplianceindustry,1972,(Doctoraldissertation,HarvardUniversity)Astrategicgroupisagroupoffirminanindustryfollowingthesameorasimilarstrategyalongthesamestrategicdimensions.ExampleofStrategicGroupGroupAGroupDGroupBGroupCProductlineWideNarrowVerticalintegrationAWideproductline,highintegration,lowmanufacturecost,lowservice,mid-qualityLowHighBNarrowproductline,highautomaticprocess,,lowprice,lowservice,CNarrowproductline,assembler,highprice,hightechnology,highqualityDMid-productline,assembler,mid-price,highservice,mid-qualityImplicationsofStrategicGroupAfirm’smajorcompetitorsarethosewithinitsstrategicgroup.Thestrengthsofthefivecompetitiveforcesdifferacrossstrategicgroups.Thecloserthestrategicgroupsintermsofstrategiesfollowedanddimensionsemphasized,thegreaterthelikelihoodofcompetitiverivalrybetweenthegroups.123CompetitorAnalysisWhatdrivesthecompetitor(asshownbyitsfutureobjectives);Whatthecompetitorisdoingandcando(asrevealedbyitscurrentstrategy);Whatthecompetitorbelievesaboutitselfandtheindustry(asshownbyitsassumptions);andWhatthecompetitor’scapabilitiesare(asshownbyitscapabilities)Throughanalysis,afirmshouldbeclearabout:CompetitorAnalysisComponentsFutureobjectivesHowdoourgoalscomparetoourcompetitors’goal?Wherewillemphasisbeplacedinthefuture?Whatistheattitudetowardrisk?CurrentstrategyHowarewecurrentlycompeting?Doesthisstrategysupportchangesinthecompetitionstructure?Assumptionsdoweassumethefuturewillbevolatile?Areweoperatingunderastatusquo?Whatassumptionsdoourcompetitorsholdabouttheindustryandthemselves?CapabilitiesWhatareourstrengthsandweaknesses?Howdoweratecomparedtoourcompetitors?ResponseWhatwillourcompetitorsdointhefuture?Wheredoweholdanadvantageoverourcompetitors?Howwillthischangeourrelationshipwithourcompetitors?Chapter3TheInternalEnvironmentResourcesCapabilitiesCoreCompetenciesComponentsofInternalAnalysisRESOURCESTangibleIntangibleCAPABILITIESTeamsofresourcesCORECOMPETEN-CIESSourcesofcompetitiveadvantageSUSTAINABLECOMPETITIVEADVANTAGEGainedthroughcorecompetenciesSTRATEGICCOMPETI-TIVENESSAARsResourcesResourcesareinputsintoafirm’sproductionprocesssuchascapitalequipment,theskillsofindividualemployees,patents,finance,andtalentedmanagers.Tangibleresourcesareassetsthatcanbeseenandquantified.Intangibleresourcesrangefromtheintellectualpropertyrightsofpatents,trademarks,andcopyrightstothepeople-dependentorsubjectiveresourcesofknow-how,networks,organizationalculture,andafirm’sreputationforitsgoodsandservicesandthewaysitinteractswithpeople(e.g.,employees,suppliers,andcustomers)TangibleResourcesFinancialR.PhysicalR.HumanR.OrganizationalR.Thefirm’sborrowingcapacityThefirm’sabilitytogenerateinternalfundsSophisticationandlocationofafirm’splantandequipmentAccesstorawmaterialsThetraining,experience,judgment,intelligence,insight,adaptability,commitment,andloyaltyofafirm’sindividualmanagersandworkersThefirm’sformalreportingstructureanditsformalplanning,controlling,andcoordinatingsystemsIntangibleResourcesTechnologicalR.R.forInnovationReputationStockoftechnologysuchaspatents,trademarks,copyrightsandtradesecretsTechnicalemployeesResearchfacilitiesReputationwithcustomersReputationwithsuppliersKnowledgerequiredtoapplyitsuccessfullyBrandnamePerceptionsofproductquality,durability,andreliabilityForefficient,effective,supportive,andmutuallybeneficialinteractionsandrelationshipsCapabilitiesCapabilityisthecapacityforasetofresourcestointegrativelyperformataskoractivity.ExampleofFirm’’sCapabilitiesFunctionAreasCapabilitiesFirmExamplesDistributionEffectiveuseoflogisticsmanagementtechniquesWal-MartAEROJETHumanR.Motivating,empowering,andretainingemployeesMISEffectiveandefficientcontrolofinventoriesthroughpoint-of-purchasedatacollectionmethodsMarketingEffectivepromotionofbrand-nameproductsWal-MartGilletteManagementEffectivecustomerserviceMcKinsey&.InnovativemerchandisingHewlett-PackardCrate&BarrelEffectiveexecutionofmanagerialtasksAbilitytoenvisionthefutureofclothingPepsiCoTheGapEffectiveorganizationalstructureManufacturingDesignandproductionskillsyieldingreliableproductsKomatsuR&DProductandtechnologicallysophisticatedautomobileenginesProductanddesignqualityTheGapMazdaMiniaturizationofcomponentsandproductsSonyExceptionaltechnologicalcapabilityCorningDevelopmentofsophisticatedengineeringelevatorcontrolsolutionsRapidtransformationoftechnologyintonewproductsandprocessesEngineeringInc.MotionControlDeepknowledgeofsilver-halidematerialsKodakDigitaltechnologyThomsonConsumerElectronicFirminfrastructureHumanresourcemanagementTechnologydevelopmentProcurementInboundlogisticsOperationsOutboundlogisticsMarketing&salesServiceMARGINMARGINPrimaryactivitiesSupportactivitiesTheBasicValueChainSupportactivitiesprovidethesupportnecessaryfortheprimaryactivitiestotakeplace.Primaryactivitiesareinvolveswithaproduct’sphysicalcreation,itssale,anddistributiontobuyers,anditsserviceafterthesale.ConceptofPrimaryandSupportActivitiesExaminingtheValue-CreatingPotentialofPrimaryActivitiesInboundLogisticsActivities,suchasmaterialshandling,warehousing,andinventorycontrol,usedtoreceive,store,anddisseminateinputstoaproduct.EffectiveuseoflogisticsmanagementtechniquesOperationsActivitiesnecessarytoconverttheinputsprovidedbyinboundlogisticsintofinalproductform.Machining,packaging,assembly,andequipmentmaintenanceareexamplesofoperationsactivities.MarketingandSalesActivitiescompletedtoprovidemeansthroughwhichcustomerscanpurchaseproductsandtoinducethemtodoso.Toeffectivelymarketandsellproducts,firmsdevelopadvertisingandpromotionalcampaigns,selectappropriatedistributionchannels,andselect,develop,andsupporttheirsalesforce.OutboundLogisticsServiceActivitiesinvolvedwithcollecting,storing,andphysicallydistributingthefinalproductstocustomers.Examplesoftheseactivitiesincludefinishedgoodswarehousing,materialshandling,andotherprocessing.Activitiesdesignedtoenhanceormaintainaproduct’’svalue.Firmsengageinarangeofservice-relatedactivities,includinginstallation,repair,training,andadjustment.Eachactivityshouldbeexaminedrelatedtocompetitors’abilities.Accordingly,firmsrateeachactivityassuperior,equivalent,orinferior.ExaminingtheValue-CreatingPotentialofSupportActivitiesProcurementActivitiescompletedtopurchasetheinputsneededtoproduceafirm’’sproducts.Purchasedinputsincludeitemsfullyconsumedduringthemanufactureofproducts(e.g.,rawmaterialsandsuppliesaswellasfixedassets––machinery,laboratoryequipment,officeequipment,andbuildings)TechnologicaldevelopmentActivitiescompletedtoimproveafirm’’sproductandprocessesusedtomanufactureit.Technologydevelopmenttakesmanyforms,suchasprocessequipment,design,bothbasicresearchandproductdesign,andservicingprocedures.FirmInfrastructureFirminfrastructureincludesactivitiessuchasgeneralmanagement,planning,finance,accounting,legalsupport,andgovernmentalrelationthatrequiredtosupporttheworkoftheentirevaluechain.Throughitsinfrastructure,thefirmstrivestoeffectivelyandconsistentlyidentifyexternalopportunitiesandthreats,identifyresourcesandcapabilities,andsupportcorecompetencies.HumanResourcesManagementActivitiesinvolvedwithrecruiting,hiring,training,developing,andcompensatingallpersonnel.Eachactivityshouldbeexaminedrelatedtocompetitors’abilities.Accordingly,firmsrateeachactivityassuperior,equivalent,orinferior.CoreCompetenceCorecompetenceareresourcesandcapabilitiesthatserveasaresourceofcompetitiveadvantageforafirmoveritsrivals.CoreCompetenceCoreCompetenceCoreCompetenceCoreCompetenceasaStrategicCapabilityResourcesInputstoafirm’’sproductionprocessCapabilityAnintegrationofateamofresourcesCoreCompetenceAstrategiccapabilityCapabilityAnonstrategicteamofresourcesDoesthecapabilitysatisfythecriteriaofSCA?YesNoThesourceofCriteriaofSustainableCompetitiveAdvantageValuableValuablecapabilitiesarethosethathelpafirmexploitopportunitiesand/orneutralizethreatsinitsexternalenvironment.RareRarecapabilitiesarethosepossessedbyfew,ifany,currentorpotentialcompetitors.CostlytoImitateCostlytoimitatecapabilitiesarethosethatotherfirmscannotdevelopeasily.NonsubstitutableNonsubstitutablecapabilitiesarethosethatdonothavestrategicequivalents.OutcomesfromCombinationsofCriteriaofSCANoNoNoNoCompetitivebelow-disadvantageaveragereturnsYesNoNoYes/NoCompetitiveaverageparityreturnsYesYesNoYes/NoTemporaryAbove-competitiveaverageadvantagereturns/averagereturnsYesYesYesYesSCAAARsIstheResourceorCapabilityValuable?IstheResourceorCapabilityRare?IstheResourceorCapabilityCostlytoImitate?IstheResourceorCapabilityNonsustainable?CompetitiveConsequencesPerformanceImplicationsChapter4Business-LevelStrategyAstrategyisanintegratedandcoordinatedsetofcommitmentsandactionsdesignedtoexploitcorecompetenciesandgainacompetitiveadvantage.Abusiness-levelstrategyisanintegratedandcoordinatedsetofcommitmentsandactionsdesignedtoprovidevaluetocustomersandgainacompetitiveadvantagebyexploitingcorecompetenciesinspecific,individualproductmarkets.CUSTOMERWhoitwillserve?What