4.Asessing the Internal Environment of the Firm

8/16/2019 4.Asessing the Internal Environment of the Firm

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5/21/16 Henry F Noor.doc 1

ManjemenStratejik

Topik Assessing the Internal Environment of the Firm a. Value Chain Analysis b. Resource Base View of he Fir!

c. "#aluain$ Fir! %erfor!ance &wo a''roach

Universitas IndonesiaFakultas Ilmu Sosial dan

Ilmu PolitikProgram Pasca SarjanaKomunikasi

Instruktur !enr" Fai#al $oorEmail dika%&'()*ahoo+com

!enr"+faisal)ui+ac+id

,'%-

mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Ke.utuhan/Needs0

Keinginan(Wants0

Kegiatan Ekonomi Mas"arakat dan Investasi

K1$SUMSI

2arang 3asa

1lehS4asta

merupakanPE5UA$6USA!A

/2IS$IS0

K1$SUME$

P718UKSI

PEMUASA$

SUM2E7PE$8APATA$

ME$9A7I5A2A8imulai

denganinvestasi

2arangdan jasa

Pu.lik

2arang dan 3asa

Privat

1leh $egaramerupakanTugas danKe4aji.an

$egaraMela"ani

Mas"arakat

Supply

Demand


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5/21/16 Henry F Noor.doc (

2agaimana melaksanakan Bisnis a$ar tujuan da'a

dicapai :

Manejemen Usaha

Aktivitas2agaimana .er.isnis

; Perencanaan ;Pelaksanaan

Alat untuk menilaiApakah Tujuan tercapai :

)nfor!asi %e!asaran

)nfor!asi &e*nolo$i

)nfor!asi +u!berdaya lainnya

%erlu )nfor!asi ,euan$an

%encaaan ---- Akuntansi

%en$olahan - Akuntansi

ane0e!en +u!ber aya anusia ,euan$an3 dll

ane0e!en ,e$iaan %rodu*si %e!asaran3 dll

Memerlukan .er.agai jenis informasi

2isnis Adalah kegiatan !e!produksi baran$ dan 0asa unu* memuaskan

*onsu!en dan pihak terkait lainn"a3 4stakeholder dala! ran$*a mencari

la.a. 2isnis


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5/21/16 Henry F Noor.doc

Etika

Moral 3udgment

$ormatif

2ersifat

U$I=E7SA5

MerupakanStandar

Moral kehidupan.ermas"arakat

Sesuai denganAjaran agama

In accord with my Religious believed

$ilai $ilai 5uhur

Golden Rule

PerasaanWhat my feelings tell me

Is right

!

u.ungan dgn Pelanggan

Penetapan !arga>Iklan dan Promosi>

Pela"anan

!u.ungan dg Pekerja

Kondisi kerja>

!ak Pekerja

!u.ungan dg

Stakeholder lainn"a

Pemerintah /aturan> pajak0

Mas"arakat dan 5ingkungan

Pemasok

!u

.ungan dgn Konstituent 3anji

Komitmen

!u.ungan dg Partai lain

Komunikasi

Kemitraan

!u.ungan dg

Stakeholder lainn"a

erintah Mas"arakat dan 5ingkungan

9alon pendukung

8


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Pen"usunan 7encana Strategis

Implementasi

Cor'orae Business-uni Funcional 9'erain$

Internal

(ompany! "nalysis

#$ternal "nalysis

%engendal ian&

%engawas

an

RumusanStrategi

'uuan

)isi

V)+)



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N :ha we are $oin$ &o beemampuan untuk melihat inti persoalanandangan> ?a4asan

engamatan> Penglihatanrah tentang masa depanuiding Star> 9ore =alues> 2eliefs

Sense of .eliefs> values Sense of purpose Sense of mission

E*

E5EME$T 1F A =ISI1$ It isE*

E5EME$T 1F A =ISI1$ It is%+ engages our hearts and our spirits

2. a's ino e!beded concerns and needs

(. is an asserion of wha we and our collea$ues wan o creae

8. 'ro#ides !eanin$ o he wor* ha 'eo'le in he or$ani7aion d

@+ is simple

6. is a li#in$ docu!en ha can always be !odi;ed


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ISSI1$ ?hat should 4e do to reach the =91MP1$E$TS 1F MISSI1$

ISSI1$ ?hat should 4e do to reach the =i91MP1$E$TS 1F MISSI1$

ST7ATE6I9 I$TE$TVision of whayou wan o be

ST7ATE6I9 I$TE$TVision of whayou wan o be

176A$IATI1$A5=A5UES

uidin$ %rinci'les

176A$IATI1$A5=A5UES

uidin$ %rinci'les

MA7KET8EFI$ITI1$

Cuso!er ar$esneeds and wans

MA7KET8EFI$ITI1$

Cuso!er ar$es

needs and wans

8ISTI$9TI=E91MPETE$9IES

Core +*ills

8ISTI$9TI=E91MPETE$9IES

Core +*ills

91MPETITI=EP1SITI1$I$6

iDerenial ad#ana$e

91MPETITI=EP1SITI1$I$6

iDerenial ad#ana$e

MISSI1$9b0eci#es and

+rae$y

MISSI1$9b0eci#es and

+rae$y

)++)9N :" %R9V)" +@%"R)9R E@A?)&)N@+&R)A? AN C9"RC)A? B"AR)N+ AN

"?A&" +@%%9R& +"RV)C"+ &9 9@R C@+&9"R+" A+%)R"+ &9 B" &H" %"RF9RANC" ?"A"R

)N 9@R )N@+&R AN %R9V)" A +@%"R)9R"&@RN &9 9@R +HAR"H9?"R+ :)&H %AR&)C@?AR

%HA+)+ 9N A &"A "FF9R& A9N 9@R %"9%?"

)++)9N :" %R9V)" +@%"R)9R E@A?)&@+&R)A? AN C9"RC)A? B"AR)N+ AN

"?A&" +@%%9R& +"RV)C"+ &9 9@R C@+&9"R+" A+%)R"+ &9 B" &H" %"RF9RANC" ?"A"R9@R )N@+&R AN %R9V)" A +@%"R)9R

"&@RN &9 9@R +HAR"H9?"R+ :)&H %AR&)C@?AR

%HA+)+ 9N A &"A "FF9R& A9N 9@R %"9%?"

1. 9A? 1 R9:&H "nsure lon$-er! $rowh and increase !ar*e share

2. 9A? 2. E@A?)& uaranee Cuso!er saisfacion hrou$hconinues >ualiy i!'ro#e!en

(. 9A? (. %"9%?" )ncrease 'roduci#iy and o''oruniy hrou$hi!'ro#ed rainin$ and co!!unicaion

8. 9A? 8. +HAR"H9?"R+ Achie#ea oal reurn in o' >uarile of our

indusry5/21/16 Henry F Noor.doc <


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=ision

Mission

6oal

Strateg" /!1?0

Tactics /If0

StrategicAdvantage

%+ 2ased on a need to

accomplish

,+ Measured ." results

B+ 5inear> one dimensional

-+ create focus

@+ Provide direction

C+ 2ased on past eDperience

%+ 2ased on a need to continuall"

accomplish

,+ 6oals are measured ." progress

to4ard vision

B+ !ollistic> multidimensional

-+ 9reate purpose> focus> and

9reate energ"

@+ Esta.lish ne4 possi.ilities

5/21/16 Henry F Noor.doc =


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"ernal"n#iron

!en

)nernal "n#iron!en

A

5 I A $ S I ?eakneses Strength

1pportunit"

Threat

S?1T Anal"sis

6o/$o Pro.lem0

6et 1ut/Too much Pro.lem0

GAda peluang

Aliansi :

GAda peluang

Aliansi :

5/21/16 Henry F Noor.doc


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=alue 9hain

5/21/16 Henry F Noor.doc 1I

Internal Anal"sis S> ?

8istinctive7esources

8istinctive9apa.ilities

8istinctive9ompetencies

8oes it contri.ute tooutcomes valued ." target customers:

Source of 9ompetitive Advantage

*ES

EDternal Anal"sis 1> T

Cuso!er analysis by se$!en

• Financial #iabiliy• Valued bene;s• esired cuso!er e'erience

Co!'eior analysis by indusry• )ndusry co!'eiors• Naure of cuso!ers• Does the r! "a#t to $o!%ete&

Co!'eior analysis by se$!en

• Ca# the r! ser'e the se(!e#tbetter tha# )ts $o!%et)tors&

9her "ernal "n#iron!ens• "cono!ic/&echnolo$ical• %oliical/?e$al• Culural/+ocial

Market 1pportunities and Preferencesof Firms 8esired Target 9ustomers


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Resources

&an$ible)nan$ibl

e

9apa.ilities

9ompetencies

8iscovering

9ore9ompetencies

9ompetitive

Advantages

Strategic9ompetitive

ness

Four 9riteriaof

Sustaina.leAdvantages

/=79$0or/=7I$0

=alue9hain

Anal"sis

Is it enough

:

8o 4e need

1utsorcing:

hapan Internal Analisis untuk menemukangulan Kompetitif /ompetitive "dvantage0 dtegi "ang Unggul /Strategic ompetitivenes

a+ =alue 9hain Anal"sis .> 7esource 2ase =ie4 of the Firm c+ Evaluating Firm Performance T4o approach

a* +aluableb* Rarec* In,imitable (ostly to imitate!d* Non,substitutable



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ResourcesSemua sum.erda"a "ang dapat digunakan

untuk mencapai tujuan%+ Tidak semua resources ini .erada dalam

kendali manejemen

,+ Tidak semua resources ini terlihat pada

$eraca Perusahaan

B+ Pada umumn"a tidak semua tergam.ar secaraakuntansi Peluang

Pasar>

Teknologi>

prasarana>

keuangan>

an$,elihaa

n4Ta#()bl

e

an$ida*

,elihaan4I#ta#()b

le

?hat constitutes a GresourceG: A ;r! resources include all asses3 ca'abiliies3 or$ani7aional 'rocesses3 ;r!aribues3 infor!aion3 *nowled$e3 ecJ conrolled by a ;r! ha enable he ;r!o concei#e of and i!'le!en srae$ies ha i!'ro#e is eKciency andeDeci#eness

Assets :hich

are radableand non-

s'eci;c o he;r!

Assets which ;r!-s'eci;c andcan be used oi!'ro#e ;r!co!'eence


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5/21/16 Henry F Noor.doc 1(

9apa.ilities Kemampuan "ang dimiliki perusahaandalam memanfaatkan sum.er da"a /Resources0 guna mencapaitujuan

9ompetencies are 'aricular sren$hs relai#e o oher or$ani7aionsin he indusry which 'ro#ide he funda!enal basis for he 'ro#ision of

added #alue. Core co!'eencies are he colleci#e learnin$ inor$ani7aions3 and in#ol#e how o coordinae di#erse 'roducion s*illsand ine$rae !uli'le srea!s of echnolo$ies. ) is co!!unicaion3 anin#ol#e!en and a dee' co!!i!en o wor*in$ across or$ani7aionalboundaries.A core competenc" is a s'eci;c facor ha a business sees as bein$

cenral o he way i3 or is e!'loyees wor*. ) ful;ls hree 4( *ey crieriaa. ) 'ro#ides consu!er bene;sb. ) is no easy for co!'eiors o i!iaec. ) can be le#era$ed widely o !any 'roducs and !ar*es.

9ompetitive advantage ,eun$$ulan dala!bersain$Strategic 9ompetitiveness Strategi "ang menghasilkankeunggulan dalam .ersaing secara .erkesinam.ungan

/Sustainable0


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A competing Hrm can ener he !ar*e wih a resource ha has he abiliy o in#alidae he

'rior ;r!Ls co!'eii#e ad#ana$e3 which resuls in reduced nor!al cos

Sustaina.ilit" of the competitive ad#ana$e is independent 4ith regards to the timeframe. &he co!'eii#e Ad#ana$e can be seen as a susainable if

a.&he i!iai#e acions can no disru'in$ he ;r!Ms co!'eii#eness

b.) %ro#ide abo#e a#era$e reurns in he lon$ run

A core competenc" can a*e #arious for!s3 includin$ echnical/sub0ec !aer *now-how3 areliable 'rocess and/or close relaionshi's wih cuso!ers and su''liers. ) !ay also include

'roduc de#elo'!en or culure3 such as e!'loyee dedicaion.

The =alue 9hain is a syse!aic a''roach o ea!inin$ he de#elo'!en of co!'eii#ead#ana$e. &he chain consiss of a series of aci#iies ha creae and build #alue. &heycul!inae in he oal #alue deli#ered by an or$ani7aion. &he L!ar$inL de'iced in he dia$ra!is he sa!e as added #alue. &he or$ani7aion is s'li ino L'ri!ary aci#iiesL and Lsu''oraci#iiesL.

=alue9hain

9ompetitive

Hrm

9ore9ompetence

Sustaina.ilit"of the

competitiveness


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2arriers to imitation of resources /?h" do 4e need :0

B. By usin$ he abo#e de#elo'ed fra!ewor* for Resource Based View3 i reecs a uni>uefeaure which is3 susainable co!'eii#e ad#ana$e is achie#ed in an en#iron!en whereco!'eiion doesnM eis.

%+ Resources are he in'us or he facors a#ailable o a co!'any which hel's o 'erfor! iso'eraions or carry ou is aci#iies. &o !a*e resources in 'roduci#iy3 if considered asisolaed facors doesnM resul in 'roduci#iy. hence coordinaion of resources is i!'oran.

,. &he ways a ;r! can creae a barrier o i!iaion is *nown as isolain$ !echanis!s and arereeced in he as'ecs of corporate culture3 managerial capa.ilities3 informationas"mmetries and propert" rights. "ce' for le$islai#e resricions creaed hrou$h'ro'ery ri$hs3 oher hree as'ecs are direc or indirec resuls of !ana$erial 'racices.

@.&hrou$h barriers o i!iaion incu!bens ensure ha ri#alry ;r!s do no reach a le#el o'erfor! in a si!ilar !anner o he!. )n oher words3 he susainabiliy of he winnin$ ed$e isdeer!ined by he sren$h of no lein$ oher ;r!s co!'ee in he sa!e le#el.

-. Ri#alry ;r!s !ay no 'erfor! a a le#el ha could be ideni;ed as a considerableco!'eiion for he incu!bens of he !ar*e since hey do no 'ossess he re>uired resources

o 'erfor! a a le#el ha creaes a hrea hence creae co!'eiion.


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8eveloping resources for thefuture

9omplementar" 4ork Buildin$ on he Resources Base View 4RBV 3i was su$$esed a !ore e'ansi#e discussion ofsusained diDerences a!on$ ;r!s and de#elo' a broad heory of co!'eii#e heero$eneiy.O&he RBV see!s o assu!e wha i see*s o e'lain. &his dilues is e'lanaory 'ower. Forea!'le3 one !i$h ar$ue ha he RBV de;nes3 raher han hy'ohesi7es3 ha susained

'erfor!ance diDerences are he resul of #ariaion in resources and ca'abiliies across ;r!s. &he diDerence is suble3 bu i frusraes undersandin$ he RBVMs 'ossible conribuions4Hoo'es e al.3 2II( =1. 9ompetitive heterogeneit" can obain for reasons oher han sic*y resources 4orca'abiliies Co!%et)t)'e hetero(e#e)t* refers o endurin$ and syse!aic 'erfor!ancediDerences a!on$ close co!'eiors

Based on he e!'irical Resources Based View3 'ro#ides us he undersandin$ ha certainuniue eDisting resources 4ill result in superior performance and ultimatel" .uilda competitive advantage. +usainabiliy of such ad#ana$e will be deer!ined by heabiliy of co!'eiors o i!iae such resources. Howe#er3 he eisin$ resources of a ;r!

!ay no be ade>uae o faciliae he fuure !ar*e re>uire!en due o #olailiy of hecone!'orary !ar*es. &here is a #ial need o !odify and de#elo' resources in order oencouner he fuure !ar*e co!'eiion.An or$ani7aion should e'loi eisin$ business o''oruniies usin$ he 'resen resourceswhile $enerain$ and de#elo'in$ a new se of resources o susain is co!'eii#eness in hefuure !ar*e en#iron!ens3 hence an or$ani7aion should be en$a$ed in resource!ana$e!en and resource de#elo'!en in order o susain he co!'eii#e ad#ana$e. )Mscrucial o de#elo' resources ha will sren$hen heir abiliy o coninue he su'erior

'erfor!ance. Any indusry or !ar*e reecs hi$h uncerainy and in order o sur#i#e andsay ahead of co!'eiion New resources beco!es hi$hly necessary. &he eisin$ winnin$ed$e needed o be de#elo'ed since #arious !ar*e dyna!ics !ay !a*e eisin$ #aluecreain$ resources obsolee


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In.ound

5ogistics

J

1perati

ons J

1ut.ound

5ogistics J

Marketing

Sales JService J

MA7

6I$

Firm Infrastructure

!7 Management

Technolog" 8evelopment

Procurement

Porter's Generic Value Chain

5/21/16 1uired.1perations the processes of ransfor!in$ in'us ino ;nished 'roducs and ser#ices.1ut.ound 5ogistics he warehousin$ and disribuion of ;nished $oods.Marketing Sales he ideni;caion of cuso!er needs and he $eneraion of sales.

Service he su''or of cuso!ers afer he 'roducs and ser#ices are sold o he!.


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&he ;r!Ls !ar$in or 'ro; de'ends on is eDeci#eness in 'erfor!in$ hese aci#iieseKcienly3 so ha he a!oun ha he cuso!er is willin$ o 'ay for he 'roducs eceedshe cos of he aci#iies in he #alue chain. ) is in hese aci#iies ha a ;r! has heo''oruniy o $enerae su'erior #alue.

&he #alue chain !odel is a useful analysis ool for de;nin$ a ;r!Ls core co!'eencies and

he aci#iies in which i can 'ursue a co!'eii#e ad#ana$e as follows%+ 9ost advantage by beer undersandin$ coss and s>uee7in$ he! ou of he #alue-addin$ aci#iies.

,+ 8ierentiation by focusin$ on hose aci#iies associaed wih core co!'eencies andca'abiliies in order o 'erfor! he! beer han do co!'eiors.

5/21/16 1=Henry F Noor.doc

These primar" activities are supported ." &he infrasrucure of he ;r! or$ani7aional srucure3 conrol syse!s3 co!'any culure3 ec.Hu!an resource !ana$e!en e!'loyee recruiin$3 hirin$3 rainin$3 de#elo'!en3 andco!'ensaion. &echnolo$y de#elo'!en echnolo$ies o su''or #alue-creain$ aci#iies.%rocure!en 'urchasin$ in'us such as !aerials3 su''lies3 and e>ui'!en.

A co!'eii#e ad#ana$e !ay be achie#ed by recon;$urin$ he #alue chain o 'ro#ide lowercos or beer diDereniaion.

9ost Advantage and the =alue 9hainA ;r! !ay creae a cos ad#ana$e eiher by reducin$ he cos of indi#idual #alue chainaci#iies or by econ;$urin$ he #alue chain.

9nce he #alue chain is de;ned3 a cos analysis can be 'erfor!ed by assi$nin$ coss o he#alue chain aci#iies. &he coss obained fro! he accounin$ re'or !ay need o be!odi;ed in order o allocae he! 'ro'erly o he #alue creain$ aci#iies.


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9ost drivers related to value chain activities1."cono!ies of scale 2.?earnin$ (.Ca'aciy uili7aion 8.?in*a$es a!on$ aci#iies

5.)nerrelaionshi's a!on$ business unis 6. e$ree of #erical ine$raion Services> or ProcessesB+ Production-+ Marketing Sales@+ 8istri.utionC+ 9ustomer Service


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5/21/16 Henry F Noor.doc 2I

The value chain> also kno4n as valuechain anal"sisis a chain of aci#iies.%roducs 'ass hrou$h all aci#iies of he chain $ains so!e #alue. &he chain of aci#iies $i#es he 'roducs !ore added #alue han hesu! of added #alues of all aci#iies

&he #alue chain cae$ori7es he generic value Nadding activities ofan or$ani7aion. &he P'ri!ary aci#iiesP include in.ound logisticso'eraions 4production3 out.ound lo$isics marketing and sales 4de!and3 and services 4!ainenance

&he support activities include administrative infrastructure!ana$e!en3 hu!an resource !ana$e!en3 echnolo$y 4RQ3 and'rocure!en. &he coss and #alue dri#ers are ideni;ed for each #alueaci#iy

&he #alue chain fra!ewor* >uic*ly !ade is way o he forefron of!ana$e!en hou$h as a 'owerful analysis ool for srae$ic%lannin$. &he si!'ler conce' of #alue srea!3 a cross-funcional'rocess which was de#elo'ed o#er he ne decade3 had so!e successin he early 1Is


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5/21/16 21Henry F Noor.doc

The valueNchain concept has .een eDtended .e"ondindividual organi#ations+

It can appl" to 4hole suppl" chainsand distri.ution net4orks+ &hedeli#ery of a !i of 'roducs and ser#ices

o he end cuso!er will !obili7ediDeren econo!ic facors3 each!ana$in$ is own #alue chain. &heindusry wide synchroni7ed ineracions ofhose local #alue chains creae aneended #alue chain3 so!ei!es $lobalin een. Porter er!s his lar$erinerconneced syse! of #alue chains heP#alue syse!.

A #alue syse! includes he #alue

chains of a ;r!Ls su''lier 4andheir su''liers all he way bac*3he ;r! iself3 he ;r! disribuionchannels3 and he ;r!Ls buyers4and 'resu!ably eended o hebuyers of heir 'roducs3 and so on

Ca'urin$ he #alue $eneraed alon$ he chain is he new a''roacha*en by !any !ana$e!en srae$iss. For ea!'le3 a !anufacurer!i$h re>uire is 'ars su''liers o be locaed nearby is asse!bly'lan o !ini!i7e he cos of rans'oraion. By e'loiin$ heu'srea! and downsrea! infor!aion owin$ alon$ he #alue chain3

he ;r!s !ay ry o by'ass he iner!ediaries creain$ new business!odels or in oher ways creae i!'ro#e!ens in is #alue syse!.

&o beer undersand he aci#iies hrou$h which a ;r! de#elo's aco!'eii#e ad#ana$e and creaes shareholder #alue3 i is useful ose'arae he business syse! ino a series of #alue-$enerain$ aci#iiesreferred o as he value chain.


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8ierentiation and the =alue 9hainA diDereniaion ad#ana$e can arise fro! any 'ar of he #alue chain. For ea!'le3'rocure!en of in'us ha are uni>ue and no widely a#ailable o co!'eiors can creaediDereniaion3 as can disribuion channels ha oDer hi$h ser#ice le#els.

+e#eral dri#ers of uni>ueness 4by %orer%+ Policies and decisions ,+ 5inkages among activities B+Timing -+5ocation

@+InterrelationshipsC 5earning &+Integration (+Scale /e+g+ .etter service as a result of

large scale0 O+Institutional factors


iDereniaion se!s fro! uni>ueness. A diDereniaion ad#ana$e !ay be achie#ed eiher by

chan$in$ indi#idual #alue chain aci#iies o increase uni>ueness in he ;nal 'roduc or byrecon;$urin$ he #alue chain.

f these dirvers of uniueness also serve as cost drivers+

8ierentiation often results in greater costs> resulting in tradeos .et4een cost

and dierentiation

=alue 9hain and Uniueness1.&here are se#eral ways in which a ;r! can recon;$ure is #alue chain in order o creaeuni>ueness. Value chain @ni>ueness2.) can forward ine$rae in order o 'erfor! funcions ha once were 'erfor!ed by iscuso!ers.(. ) can bac*ward ine$rae in order o ha#e !ore conrol o#er is in'us.

8. ) !ay i!'le!en new 'rocess echnolo$ies or uili7e new disribuion channels.5.8.@li!aely3 he ;r! !ay need o be creai#e in order o de#elo' a no#el #alue chaincon;$uraion ha increases 'roduc diDereniaion.Technolog" and the =alue 9hainBecause echnolo$y is e!'loyed o so!e de$ree in e#ery #alue creain$ aci#iy3 chan$es inechnolo$y can i!'ac co!'eii#e ad#ana$e by incre!enally chan$in$ he aci#iieshe!sel#es or by !a*in$ 'ossible new con;$uraions of he #alue chain. Various echnolo$iesare used in boh 'ri!ary #alue aci#iies and su''or aci#iies.


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In.ound 5ogistics Technologies &rans'oraion1. aerial handlin$2. aerial sora$eB+ 9ommunications

8. &esin$5. )nfor!aion syse!s

1perations Technologies %rocess1. aerials2. achine ools(. aerial handlin$8. %ac*a$in$5. ainenance6. &esin$

ueness3 heycan lead o a co!'eii#e ad#ana$e.

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5inkages 2et4een =alue 9hain ActivitiesValue chain aci#iies are no isolaed fro! one anoher. Raher3 one #alue chain aci#iy ofenaDecs he cos or 'erfor!ance of oher ones. ?in*a$es !ay eis beween 'ri!ary aci#iiesand also beween 'ri!ary and su''or aci#iies.Consider he case in which he desi$n of a 'roduc is chan$ed in order o reduce

!anufacurin$ coss. +u''ose ha in ad#erisin$ he new 'roduc desi$n resuls inincreased ser#ice cossJ he cos reducion could be less han anici'aed and e#en worse3here could be a ne cos increase.+o!ei!es howe#er3 he ;r! !ay be able o reduce cos in one aci#iy and conse>uenlyen0oy a cos reducion in anoher3 such as when a desi$n chan$e si!ulaneously reduces!anufacurin$ coss and i!'ro#es reliabiliy so ha he ser#ice coss also are reduced.

&hrou$h such i!'ro#e!ens he ;r! has he 'oenial o de#elo' a co!'eii#e ad#ana$e.

Anal"#ing 2usiness Unit Interrelationships

)nerrelaionshi's a!on$ business unis for! he basis for a hori7onal srae$y. +uchbusiness uni inerrelaionshi's can be ideni;ed by a #alue chain analysis.

&an$ible inerrelaionshi's oDer direc o''oruniies o creae a syner$y a!on$ businessunis. For ea!'le3 if !uli'le business unis re>uire a 'aricular raw !aerial3 he'rocure!en of ha !aerial can be shared a!on$ he business unis. &his sharin$ of he'rocure!en aci#iy can resul in cos reducion. +uch inerrelaionshi's !ay eissi!ulaneously in !uli'le #alue chain aci#iies.

@nforunaely3 ae!'s o achie#e syner$y fro! he inerrelaionshi's a!on$ diDerenbusiness unis ofen fall shor of e'ecaions due o unanici'aed drawbac*s. &he cos ofcoordinaion3 he cos of reduced eibiliy3 and or$ani7aional 'racicaliies should beanaly7ed when de#isin$ a srae$y o rea' he bene;s of he syner$ies.



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1utsourcing =alue 9hain ActivitiesA ;r! !ay s'eciali7e in one or !ore #alue chain aci#iies and ousource he res. &he eeno which a ;r! 'erfor!s u'srea! and downsrea! aci#iies is described by is de$ree of#erical ine$raion.A horou$h #alue chain analysis can illu!inae he business syse! o faciliae ousourcin$decisions. &o decide which aci#iies o ousource3 !ana$ers !us undersand he ;r!Ls

sren$hs and wea*nesses in each aci#iy3 boh in er!s of cos and abiliy o diDereniae.ana$ers !ay consider he followin$ when selecin$ aci#iies o ousourcea. :heher he aci#iy can be 'erfor!ed chea'er or beer by su''liers.b. :heher he aci#iy is one of he ;r!Ls core co!'eencies fro! which se!s a cos

ad#ana$e or 'roduc diDereniaion.c. &he ris* of 'erfor!in$ he aci#iy in-house. )f he aci#iy relies on fas-chan$in$

echnolo$y or he 'roduc is sold in a ra'idly-chan$in$ !ar*e3 i !ay be ad#ana$eous oousource he aci#iy in order o !ainain eibiliy and a#oid he ris* of in#esin$ ins'eciali7ed asses.

d. :heher he ousourcin$ of an aci#iy can resul in business 'rocess i!'ro#e!ens suchas reduced lead i!e3 hi$her eibiliy3 reduced in#enory3 ec.

The =alue 9hain S"stemA ;r!Ls #alue chain is 'ar of a lar$er syse! ha includes he #alue chains of u'srea!su''liers and downsrea! channels and cuso!ers. %orer calls his series of #alue chains he'alue s*ste!3 shown conce'ually below



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...

J+u''li

erValueChain

Firm=alue9hain J

Chann

elValueChain J

BuyerValueChain

The Value System

5inkages eis not onl" in a ;r!Ls #alue chain3 bu alsobeween #alue chains.


Clearly3 a ;r!Ls success in de#elo'in$ and susainin$ a co!'eii#ead#ana$e de'ends no only on is own #alue chain3 bu also on isabiliy o !ana$e he #alue syse! i self.

:hile a ;r! ehibiin$ a hi$h de$ree of #erical ine$raion is 'oised o beercoordinae u'srea! and downsrea! aci#iies3 a ;r! ha#in$ a lesser de$ree of#erical ine$raion noneheless can for$e a$ree!ens wih su''liers and channel'arners o achie#e beer coordinaion. For ea!'le3 an auo !anufacurer !ay

ha#e is su''liers se u' faciliies in close 'roi!iy in order o !ini!i7erans'or coss and reduce 'ars in#enories.


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5/21/16 Henry F Noor.doc 2=

Instrumental approaches to4ards stakeholder theor"

a. &o !ai!i7e shareholder #alue o#er an uncerain i!e fra!e3 !ana$ers ou$h o 'ayaenion o *ey sa*eholder relaionshi's.

b. Fir!s ha#e a sa*e in he beha#ior of heir sa*eholders. Furher3 if 'ruden !ana$e!en

of ;r!sL o'erain$ en#iron!ens3 includin$ relaionshi's wih heir sa*eholders3 is a 'arof $ood !ana$e!en in $eneral3 $ood sa*eholder !ana$e!en has clear insru!enal#alue for he ;r!s.

c. A funda!enal assu!'ion of his y'e of !odel is ha he uli!ae ob0eci#e of cor'oraedecisions is !ar*e'lace success.

d+ Firms vie4 their stakeholders as part of an environment that must .e managedin order to assure revenues> proHts> and ultimatel"> returns to shareholders.

e. Aenion o sa*eholder concerns !ay hel' a ;r! a#oid decisions ha !i$h 'ro!'

sa*eholders o undercu or hwar is ob0eci#es. &his 'ossibiliy arises because i is hesa*eholders who conrol resources ha can faciliae or enhance he i!'le!enaion ofcor'orae decisions.

f. +a*eholder !ana$e!en is a !eans o an end. &he end3 or he uli!ae resul3 !ay ha#enohin$ o do wih he welfare of sa*eholders in $eneral. )nsead3 the Hrms goal is theadvancement of the interests of onl" one stakeholder groupNNits shareholders.

$. &he ;r!Ls ineres in sa*eholder relaionshi's as insru!enal and conin$en on he#alue of hose relaionshi's o cor'orae ;nancial success.

h. P)nsru!enal Tsrae$icU ehics eners he 'icure as an addendu! o he rule of wealh!ai!i7aion for he !ana$er-a$en o followP

i. )n his for!ulaion3 stakeholder management is part of a compan"s strateg" .utin no 4a" drives that strateg". )!'lici in his 'ers'eci#e is he assu!'ion ha!odes of dealin$ wih sa*eholders ha 'ro#e u'on ado'ion o be un'roduci#e will bedisconinued3 as will hose ha in#ol#e resources ha are no lon$er needed. &he concernsof sa*eholders ener a ;r!Ls decision-!a*in$ 'rocesses only if hey ha#e srae$ic #alue

o he ;r!.


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&wo #arians of he +rae$ic +a*eholder ana$e!en a''roach arehe direct eects model and he moderation model.

)n he direct eects model3 !ana$ersL aiudes and acions owardsa*eholders 4heir sa*eholder orienaion are 'ercei#ed as ha#in$ a direc eDec

on ;r! ;nancial 'erfor!ance3 inde'enden of ;r! srae$y.)n he moderation model3 !ana$erial orienaion oward sa*eholders doesi!'ac ;r! srae$y by !oderain$ he relaionshi' beween srae$y and;nancial 'erfor!ance

Stakeholder7elationships

Firms Strateg"Firms /Financial0

Performance

Moderation =ariant

Stakeholder

7elationships

Firms Strateg"

Firms /Financial0Performance

8irect Eect

=ariant

Documents

4.Asessing the Internal Environment of the Firm