the support activities of a firm include:

Which strategy champions worldwide consistency and standardization to support the firm's goal to become the low-cost leader? Learn more about how Pressbooks supports open publishing practices. Primary activities involve the creation and distribution of goods and services. structure of the industry in which it competes, Many industries are imperfectly competitive. A) purchasing key inputs B) recruiting and training employees C) repairing the product for the consumer B) They are not locked into an existing brand image. Operations - are all the activities required to transform inputs into outputs (products and services). This tool is useful in that it examines key elements in the production of a good or service, as well as areas in which value may be added in support of those primary activities. A) rare, valuable, mobile, nonsubstitutable. This simple yet profound statement suggests that organizations that quickly complete their work will enjoy greater profits, while slower-moving firms will suffer. How is Internet technology useful from a network economics perspective? According to value chain analysis, which of the following would be considered part of a firm's infrastructure? Google is engaging a(n) __________ strategy. Firm infrastructure (or administration and management), human resources, technology, and procurement b. The costs of deploying each buffer differs across industries; therefore, no solution that works for one company can be directly applied to another in a different industry without adaptation. Furthermore, the four supporting activities of the company are as under: Answer questions related to business, economics, math, accurate and free. Although doughnuts are seen by most consumers as notoriously unhealthy, the Doughnut Plant in New York City has carved out a unique niche for itself by obtaining organic ingredients from a local farmers market. Preston gives its local operations the authority to adapt value activities to prevailing local economic, political, legal, and cultural conditions. The effect of the Internet has been to raise bargaining power over suppliers. D) makes it easy to sustain operational advantages. Figure 4.18 image description: The Value Chain. B) the key emphasis on customer satisfaction and financial goals are only a means to that end. B. SWOT's focus on the external environment is too broad and integrative. Study with Quizlet and memorize flashcards containing terms like A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors., A primary challenge in BPM is employee resistance., Customers are one of the competitive forces that affect an organization's ability to compete. Gillette combines several technologies (e.g., metallurgy, physiology, physics) to attain unparalleled success in the wet shaving industry. Smalltown Computer will have difficulty in low-cost leadership, because it cannot exert economies of scale or other efficiencies of large PC manufacturers. C. a high-cost strategy and a low-cost strategy. A) For a consumer, quality means uniformity of the product. The correct answer is letter D: organization infrastructure, human resources, technology, and procurement. ______________ are the competencies or skills that a firm employs to transform inputs into outputs. No. In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for the customer. Best value supply chains strive to excel along four measures. (2011). One of Southwest Airlines unique capabilities is moving passengers more quickly than its rivals. Primary activities are most directly related to the production and distribution of the firm's products and services, which create value for the customer, including inbound logistics, operations, outbound logistics, sales and marketing, and service. Appendix 1: Mastering Strategic Management Powerpoints, When executives choose strategies, an organizations resources and capabilities should be examined alongside consideration of its value chain. These are ___________________. Large doughnut chains such as Tim Hortons can gain cost advantages over their smaller rivals by purchasing flour, sugar, and other ingredients in bulk. create, study and share online flash cards, All of the following industries have been severely disrupted by the Internet, All of the following are considered primary activities of a firm, All of the following have been disruptive technologies, All of the following are ways to improve quality, All of the following are psychological aspects of quality. Doughnut shops transform basic commodity products such as flour, sugar, butter, and grease into delectable treats. This should enable the firm to attain, Managers will be able to obtain a proportionately high level of profits they generate (relative to the firm) if. C) implementing a new information system. The emergence of the World Wide Web acted as a disruptive technology for: Which of the following best describes business globalization? B. psychographic uniqueness, path dependency, causal ambiguity, and substitutability. C. the internal analysis of the firm as well as the external analysis of the industry and competitive environment. C) organization infrastructure, human resources, sales and marketing, and technology. Figure 4.17 image description: Adding Value within a Value Chain. For example, people cannot help but notice Randys Donuts in Inglewood, California, because the building has a giant doughnut on top of it. Political, legal, economic, monetary, and institutional forces comprise the _________ of international business and influence managers' actions. This is an example of their. What practical steps should a firm use in aligning IT with its goals? C) increases the difference between competitors because of the wide availability of information. Johnson & Johnson delegates to its subsidiaries a great deal of authority to respond to local conditions. C. SWOT gives a one-shot view of a moving target. Unable to match its rivals speed and costs, Kmart soon plunged into bankruptcy. C. supports both individual primary and support activities and the entire value chain. Apply Porter's competitive forces model to that product and/or company. This section of the chapter is adapted from Ketchen, D. J., Rebarick, W., Hult, G. T., & Meyer, D. 2008. Johnson is most likely benefiting from _________________. D) synchronizes the business processes of customers, suppliers, and trading partners. All of the following are psychological aspects of quality except: A micromultinational is a small firm operating on a global scale. flexibility to apply location-specific skills to local opportunities. This arrangement creates an information flow that cannot be duplicated through other methods. Human resources management: These activities include hiring, training, paying and retaining employees to support the execution of the value chain. Best value supply chains: A key competitive weapon for the 21st century. Support activities make the delivery of the primary activities possible and consist of organization infrastructure (administration and management), human resources, technology (improving products and the production process), and procurement. B) in periods of recession or economic boom. This has been termed. Meanwhile, failing to manage a supply chain effectively causes serious harm. A meta-analysis of the relationship between human capital and firm performance concluded that there is a strong positive correlation. Student answers will vary. B) effective information systems contributing significantly to a firm's overall cost leadership strategy. views the firm as a series of basic activities that add value to its products and services inbound logistics, operations, outbound logistics, marketing and sales, customer service Primary activities include: Which of the four generic strategies is the company using? Although doughnut making is not a high-tech business, technology plays a variety of roles for doughnut shops, such as allowing customers to use debit cards, just in time delivery systems, online ordering, and supply management systems. are those that go directly into the creation of a product or the execution of a service, including: Which of the following tools or technologies would you use to improve production precision? According to Porter (1985), the primary activities are: Inbound Logistics - involve relationships with suppliers and include all the activities required to receive, store, and disseminate inputs. B) supports only individual support activities. Attracting potential customers and convincing them to make purchases is the domain of marketing and sales. In value chain analysis, you ask at each stage of the value chain, "How can we use information systems to improve operational efficiency and improve customer and supplier intimacy?" In situations in which the interests of one firm in the chain and the chain as a whole conflict, most executives will choose an option that benefits their firm. C) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement. Outbound logistics tracks the movement of a finished product to customers. Probably the best single way to reduce quality problems is to reduce cycle time. Large chains such as Tim Hortons enjoy low prices in their procurement process because they buy supplies in bulk. Ratios that reflect whether or not a firm is efficiently using its resources are known as, Historical comparisons provide information to managers about changes in a firm's competitive position. What are the steps involved in practicing BPM? Organizational strengths may not lead to competitive advantage. T or F? A supply chain is a broader concept than a value chain; the latter refers to activities within one firm, while the former captures the entire process of creating and distributing a product, often across several firms. Also, firms whose supply chains were centred in the Port of Los Angeles collectively lost more than $2 billion a day during a 2002 workers strike. A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors. Actions that managers take to attain the firm's goals are referred to as _______. Daily face-to-face contact for supply chain personnel enables quicker response times to customer demands due to the speed at which information can travel back and forth between the parties. C) organization infrastructure, human resources, sales and marketing, and technology. D) Compare the financial ratios of firms in the company's strategic group. This value chain configuration illustrates the ______________ strategy. The support activities include: Firm infrastructure: These activities support the overall creation of products. Support activities include a firm's infrastructure, human resource management, technology development, and procurement . To determine this, a company could study its value chain and business processes to see which points might be automated or be made more efficient, have value added or improve quality, Click here to study/print these flashcards. B) intangible resources and operational measures. D) provides entirely Internet-driven services, or virtual products. B) need to maintain the reputation of the company. activities needed to support the firm, including the CEO human resource management activities like recruiting, hiring, training, and compensating employees inbound logistics A distinct disadvantage of an international strategy is __________________. The result was that Walmart emerged as the first responder in many towns and provided essentials such as drinking water faster than local and federal governments could. The XYZ Corp. is taking advantage of a ____________ system. Best value supply chains: A key competitive weapon for the 21st century. Recently, strategic management has moved from focusing on. A recent research study used data from more than 12,000 organizations to demonstrate that how the level of knowledge, skills, and abilities of a firms employees can act as a strategic resource and strongly influence the firms performance (Crook et al., 2011). Does human capital matter? Instead, there is recognition that the fastest chain may not satisfy customers needs. Operations at the Coffee an Donut Shop in Westport, Connecticut, rely on a secret doughnut recipe. An information system can enable a company to focus on a market niche through: Hilton Hotels' use of customer information software to identify the most profitable customers to direct services to is an example of using information systems to: All of the following industries have been severely disrupted by the Internet except: To what competitive force did the printed encyclopedia industry succumb? 2003-2023 Chegg Inc. All rights reserved. In defining a core competency, the business management can then determine ways to enable employees to understand and reach higher levels of quality production and service. Chapter 1: Mastering Strategy: Art and Science, Chapter 3: Evaluating the External Environment, Chapter 5: Selecting Business-Level Strategy, Chapter 6: Supporting the Business-Level Strategy: Competitive and Cooperative Moves, Chapter 7: Competing in International Markets, Chapter 8: Selecting Corporate-Level Strategies, Chapter 9: Executing Strategy through Organizational Design, Chapter 10: Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility, Mastering Strategic Management 1st Canadian Edition, Figure 4.17 Adding Value within a Value Chain, Next: Beyond Resource-Based Theory: Other Views on Firm Performance, Mastering Strategic Management - 1st Canadian Edition, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Dynamic capabilities include all of the following EXCEPT: A. learning and innovating. Zara is most likely using a ________________ configuration. One example answer using Apple's iPod is: Competitors to the iPod include the Zune. Which of the following examples demonstrates how successful organizations manage their primary activities? C) organization infrastructure, human resources, sales and marketing, and technology. The iPad can be seen as a disruptive technology for the ________ industry. A best value supply chain seeks to optimize the total costs of all buffers used. B) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement. Through balancing these four metrics, best value supply chains attempt to provide the highest level of total value added. A) Compare the firm's financial ratios with ratios of firms in other strategic groups in the industry. C) organization infrastructure, human resources, sales and marketing, and technology. Preston is most likely using a(n) _____________ strategy. This model identifies specific, critical leverage points where a firm can use information technology most effectively to enhance its competitive position. As an example of firm infrastructure, the explosive growth Of Tim Hortons under Ron Joycesleadership led Canada to have the highest per-capita consumption of doughnuts in the world. Voodoo Donuts in Portland, Oregon, has developed a clever website (voodoodoughnut.com) that helps customers understand their uniquely named products, such as the Voodoo Doll, the Texas Challenge, the Memphis Mafia, and the Dirty Snowball. Such competitive advantages are based upon. This creates distribution speed and economies of scale that competitors simply cannot match. These chains do not fixate on speed or on any other single metric. For example, Ron Joyces leadership of Canadian doughnut shop chain Tim Hortons was so successful that Canadians consume more doughnuts per person than all other countries. They include: Firm infrastructure Human resource management Technological development Procurement How to Implement the Value Chain Porter's generic strategies for the value chain can be used for any industry across the board. : Information systems can help improve quality by reducing the number of steps and time taken to manufacture the product. The effects of this organizing and leadership can be profound. A) physical uniqueness, path dependency, causal ambiguity, and social complexity. The relative reliability of supply chain activities. Also important is human resource managementwhich includes activities involved in recruiting, training, and compensating employees. Support or secondary activities are all the actions not directly involved in the evolution of a product, but instead provides important underlying support for a primary activity. B) Motorola has revised its compensation system to reward employees who learn a variety of skills. How are information systems used at the industry level to achieve strategic advantage? D. the effectiveness of its lobbying activities. A differentiation strategy works well when _____________________. Finally, service. Based on your reading of the chapter case, which of the four generic business strategies was Ford Motor company following in implementing its new software and apps? Business Horizons, 51, 235243. In the context of value chain analysis, the support activities of a firm include _________________. For example, in the defense industry, the U.S. Army requires one class of weapon simulators to be repaired within eight hours, while another class of items can be repaired and returned within one month. Value chains include both primary and secondary activities. A transparent marketplace means that there is high product differentiation. For this reason, many firms have placed greater attention on attracting, but not on developing or retaining talent. In assessing its primary activities, an airline would examine. This advantage in operations is based in part on Southwests reliance on one type of airplane (which speeds maintenance) and its avoidance of advance seat assignments (which accelerates the passenger boarding process) and boarding from both front and rear of the airplane. Advantages of following a strategy of local responsiveness include the ____________________. These activities can be categorized as either primary activities or support activities. Competitive advantage: Creating and sustaining superior performance. B) financial resources, physical resources, and the capacity to combine intangible resources. a. capitalize on the pioneers weakne, On October 1, 2019, Illini Company purchased a truck for $42,000. The model allows you to critically examine how you perform value-adding activities at each stage and how the business processes might be improved. In many situations, this can be accomplished through carefully writing incentives into contracts. Value chain analysis is useful at the business level to highlight specific activities in the business where information systems are most likely to have a strategic impact. a company can continually develop products that have unique features. Adaptable firms realize that this is not always a best value solution, however. Certainly, the unique level of dedication demonstrated by employees at WestJet has contributed to that firms excellent performance over several decades. The Internet itself is an example of a successful implementation of network economics the more people participate, the more valuable and essential a commodity it is. How the firm is organized and led by executives. Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen, D. J. Supplier infrastructure, human resources, sales and marketing, and technology c. Inbound logistics, firm infrastructure (or administration and management), outbound logistics, innovation, and. Here's what you need to know. C) repairing the product for the consumer, D) monitoring the cost of producing the product through a cost accounting system. B) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement. Walmarts supply chains also possess strong quality and flexibility. physical uniqueness, path dependency, causal ambiguity, and social complexity. D) organization infrastructure, human resources, technology, and procurement. C) financial analysis and stakeholder perspectives. The ability of information systems to easily record and analyze customer data, as well as automate, customize, and improve customer service, also contributes to the overall quality of the product or service. Explanation: American Harvard Business Professor Michael Porter (born in 1947) proposed that firms should focus on maximizing all the activities in their value chain to achieve a competitive advantage . Google essentially views the entire world as one market and assumes that there are no fundamental differences among countries with regard to consumers' preferences. The fewer and simpler the steps, the fewer occasions for human error to be introduced. A) Organizational strengths may not lead to competitive advantage, B) SWOT's focus on the external environment is too broad and integrative, C) SWOT gives a one-shot view of a moving target, D) SWOT overemphasizes a single dimension of strategy. New knowledge involves the continual interaction between __________ and __________ knowledge. A) Positioning and rivalry among competitors. A. Primary activities areactions directly involved in the creation and distribution of goods and services. It works by breaking an organization's activities down into strategically relevant pieces, so that you can see a fuller picture of the cost drivers and sources of differentiation, and then make changes appropriately. Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy? C) value webs of its suppliers and distributors. This is an example of, A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. B) rare, inimitable, physically unique, nonsubstitutable. When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy. D) reputation with suppliers and customers. How should managers assess changes in their firm's competitive position in their industries during a period of unusual economic growth? When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, it is often referred to as creating: An information system can enhance core competencies by: A) providing better reporting facilities. A) compares the efficiency and effectiveness of your business processes against strict standards. What local business in your town could be improved most dramatically by applying the value chain? If you were hired as a consultant for your university, what specific element of the value chain would you seek to improve first? Study with Quizlet and memorize flashcards containing terms like The five basic entities that make up any business are suppliers, customers, employees, products and services, and:, Promoting the organizations products or services is a responsibility of the ________ function, Checking for product quality is an activity associated with the ________ function and more. relying on home managers' knowledge of foreign markets, compete essentially the same way whatever the company does business. The firm strives to leverage its core competencies worldwide, reduce costs by exploiting location economics, and adapt when efficient to local conditions. strategies. A) By building industry-wide, IT-supported consortia and symposia, B) By raising the bargaining power of suppliers, C) By encouraging the entry of new competitors, D) By enforcing standards that reduce the differences between competitors. C) financial resources, physical resources, and technological resources. D. the industry and the competitive environment. The balanced scorecard provides top managers with a _____________ view of the business, The balanced scorecard developed by Kaplan and Norton helps to integrate. shipping and customer service Citibank decides to open a call center in Mumbai, India because a detailed analysis of the country-specific advantages suggests that India is the optimal place for responding to customers' calls. Which of the following is not one of the competitive forces of Porter's model? Generally, creating one supply chain for a customer is desired because this helps minimize costs. A disadvantage of the __________ strategy is that firms that adopt this strategy can decentralize too much autonomy to national subsidiaries. However, it might be good business practice for Smalltown Computer to define its core competencies in ways that differentiate its products from those of competitors and enable it to provide superior service or products. B) psychographic uniqueness, path dependency, causal ambiguity, and substitutability. D) geographic uniqueness, cause dependency, social ambiguity, and path complexity. 24) In the context of value chain analysis, the support activities of a firm include ________. tangible resources, intangible resources, and organizational capabilities. The three key types of resources that are central to the resource-based view of the firm's are A. tangible resources, intangible resources, and organizational structure. Which of the following is not one of these attributes: For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have the following four attributes. 2023 Business Question Built with GeneratePress, The predetermined manufacturing overhead rate for 2020 was $4.00 per direct labor hour; employees were paid $5.00 per hour. A) interrelationships among functional areas and firm strategies. This is particularly valuable when customer demand is uncertain, such as in the retail industry (Ketchen et al., 2008). Although general administration is often viewed only as overhead expense, it can become a source of competitive advantage. A ________ is an activity at which a firm excels as a world-class leader. If the individual gyms are franchises, then a network could be used for franchisees to share data and research new sales tactics, etc. The balanced scorecard enables managers to consider their business from all of the following perspectives except. There are two basic strategies for improving a firm's profitability. Advertising is a __________ activity. B) allows industry participants to develop industry-wide standards. In value chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. Although firm infrastructure is often viewed only as overhead expense, it can become a source of competitive advantage. The term _______________ refers to a global company that thrives on seeking unique ideas and insights from locations around the world and then leveraging that knowledge in international markets. The three key types of resources that are central to the resource-based view of the firm are: A) tangible resources, intangible resources, and organizational structure. A resource is valuable and rare but neither difficult to imitate nor without substitutes. Their output is not for sale to the market but rather for use by core functions. marketing expertise increasing a firm's revenues and enabling it to enter new markets. You are the production manager for a manufacturer of bicycle parts. ________ typically develop a single information system, usually at the home base, and then replicate it around the world. The MNE that applies a global strategy aims to ________________________________________. Studies show that about half of a business firm's profits can be explained by alignment of IT with business.

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