1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natta225 [31]
3 years ago
12

Discuss porter 1980 model and what its relationship with the management of procurement?

Business
1 answer:
Ghella [55]3 years ago
3 0
Use of Porter’s (1985) Value Chain FrameworkPorter’s model of value chain is one of the best known and widely applied models of a company’s value-creation processes (Sanchez and Heene, 2004).  According to Porter:
 “Competitive advantage cannot be understood by looking at a firm as a whole. It stems from the many discrete activities a firm performs in designing, producing, marketing, delivering and supporting its product. Each of these activities can contribute to a firm’s relative cost position and create a basis for differentiation” (Porter, 1985:33)
Porter (1985), Besanko et al. (1996), and McGuffog & Wadsley (1999) identify that a company’s profitability is a function not only of industry conditions, but also of the amount of value it creates relative to its competitors.  A firm can achieve competitive advantage if it posses ‘capabilities’ that allow it to create not only positive value but as well additional total value than its competitors (Porter, 1985; Hooley et al, 2004).  By understanding why a company can create value and whether it can continue to it in the future is a necessary first step in diagnosing a firm’s potential for achieving a competitive advantage in the marketplace (Hitt et al, 2007; Spanos and Lioukas, 2001).  Therefore, a firm must understand how its products serves customer needs better than potential substitutes; the technology of production, distribution and sales; and the business’s costs (Porter, 1985). 
<span>According to Hill & Jones (2001, 5th ed.) maintain that the term “value chain” refers to the concept that a company is s chain of activities for transforming inputs into outputs with purpose to deliver value to the customers.  Pearson (1999) states that a competitive strategy is focused on the top-level strategic objective of a company with purpose to gain competitive advantage.  Hence, if a company wishes to achieve a competitive strategy must encompass every aspect of the business so that every manager and employee knows the objectives of this strategy is and as a result every decision and action is consistent with it and serves to put in practice (Pearson, 1999).  The value chain is therefore a logical way of looking the overall business activities with purpose to mobilise these various strategic impacts (Porter, 1984).</span>
Porter (1985) introduced the concept of value chain as the basic tool for examining the activities a company performs and their interactions with a view to identifying the sources of sustainable competitive advantage.  It separates the activities of a firm into a sequential stream of activities and is used to analyse and establish the importance of the different activities in delivering the final product/service, thereby facilitating the identification of core and non-core activities. 
<span>A simplistic view of this activity organisation and operation is given to the following figure.  These activities in the value chain are core (primary) and supplementary (secondary or support) activities.  Companies, primarily have to identify the core activities that would give them sustainable competitive advantage and then identify the assets and competencies needed to achieve this advantage.  According to Sanchez and Heene (2004), the value chain activities are systematically interrelated and represent value creation.  Therefore, a business gains competitive advantage by performing these activities either more cheaply than its competitors (low cost strategy), or in a unique way that creates superior customer value and commands a price premium (differentiation).</span>
You might be interested in
Which budget or budget type should be used to meet the following​ needs? a. Upper management is planning for the next five years
Simora [160]

Answer:

a. A Strategic budget will be used by the upper management in planning for the next five years.

b. A flexible budget will be used by a store manager who wants to plan for different levels of sales.

c. A Cash budget will be used by an accountant who wants to determine whether the company has sufficient funds to cover expenses.

a. A Master Budget will be used by a CEO who wants to make companywide plans for the next year.

Explanation:

  • Strategic budget, is finnancial planing to achieve the long term goals of the company.
  • flexible budget is used for different level of sales volume.
  • Cash budget usted for forescast the cash balance.
  • Master Budget uses a schedule to present financial statements.

4 0
3 years ago
Assume you sell short 100 shares of common stock at $50 per share, with an initial margin at 50%. The stock paid no dividends du
son4ous [18]

Answer:

40%

Explanation:

Initial amount invested  = $50 × 100 × 50% = $2,500

Profit from sale and repurchase = ($50 - $40) × 100 = $1,000

Rate of return = $1,000 ÷ $2,500 = 0.40, or 40%.

Therefor, the rate of return would be 40%.

4 0
3 years ago
It takes 12 units of resources to produce 100 pounds of silk. It takes 13 units to produce 115 pounds of silk and 15 units to pr
stealth61 [152]

Because the additional output is produced with an increasing input in the production signals an example of <u>diminishing returns</u> to specialization.

<h3>What is a diminishing returns?</h3>

A diminishing returns to specialization is known to occurs if more units of resources are required to produce each additional unit.

In conclusion, the additional output which is produced with an increasing input in the production is an example of <u>diminishing returns</u> to specialization.

Read more about diminishing returns

<em>brainly.com/question/14966527</em>

5 0
2 years ago
Theresa spends 2 hours working instead of watching tv with her friends. The opportunity cost to her of working is.
Mazyrski [523]

Theresa spends 2 hours running rather than watching tv with her friends. The opportunity cost to her of running is: the profits earned running per hour

The definition of an opportunity is a positive state of affairs for an effective outcome. An instance of an opportunity is a lunch meeting with a probable organization.

This opportunity will let you observe positive paths which lead toward reaching your desires and goals. If we want what is first-rate for our careers then taking an opportunity is important. possibilities assists individuals to expand work-associated capabilities allowing them to achieve efficient paintings inside our community. each community-based totally and facility-based totally talent improvement, employment, and schooling options are available. Possibilities are first-rate motivators because they promote innovation, dedication, and power. Even in industries with which an entrepreneur is surprised, particular opportunities for fulfillment are what makes enterprise exciting. entrepreneurs and commercial enterprise-owners alike ought to look for extra possibilities.

Learn more about opportunities here:brainly.com/question/1888324

#SPJ4

3 0
1 year ago
What actions could employers and government take to encourage saving in society?
notsponge [240]
They can set good examples of people who practiced savings and the result it gave them. Provide seminars of the results and actual computation of savings through targeted years and the possible assets that they may possess through savings. It can also help them avoid some financial problems that they might encounter. 
3 0
3 years ago
Other questions:
  • Peterson Company's general ledger shows a cash balance of $7,440 on May 31.
    10·1 answer
  • Here is a question for you to practice your intuition... imagine a deluge in the city versus the forest. why does urbanization (
    14·1 answer
  • Under gaap, cash receipts from interest and dividends are classified as
    7·1 answer
  • Why did the industrial revolution start in great britain??
    11·1 answer
  • company used straight-line depreciation for an item of equipment that cost $20,300, had a salvage value of $5,600 and a six-year
    13·1 answer
  • Aaron is a freshman in college who has not yet decided on his major. He is thinking about majoring in operations management and
    6·1 answer
  • ABC Corporation has declared a rights offering to stockholders of record on Thursday, October 22nd, payable on Friday, November
    6·1 answer
  • On December 31, 2018, Ava Company had an ending balance of $8,063 in its accounts receivable account and an unadjusted (current)
    10·2 answers
  • Troy will receive $7,500 at the end of Year 2. At the end of the following two years, he will receive $9,000 and $12,500, respec
    14·2 answers
  • Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable cost
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!