salam everyone !
in this entry i would continue to share with all of you about functional level strategies .
functional level strategies are action taken at the functional and operational level and they must be in line or contribute towards the overall strategy of the corporation. this level address problem commonly faced by lower-level managers, and handle activities considered relevant to achieve the business level and corporate level strategies
the value chain or the value chain analysis (VCA) is a systematic approach to examine the development of competitive advantages. this chain activities can be classified into two categories : primary activities and support activities.
the primary activities are the activities that involved in bringing materials into the business, operating on them, sending them out, marketing them and servicing them.
there can be simply divided into :
(a) inbound logistic : activities were conducted in order to produce an end product to the users. for example : warehousing and inventory control used to received.
(b) operations : this activity needed to convert the inputs provided by inbound logistic into the final product form. for example : assembling, machining, equipment maintenance.
(c) outbound logistic : activities distributing the final product to customers. example : finished goods,manufactured
(d) marketing and sales : area focuses strongly upon marketing communications and the promotional mix. example : advertising and promotional.
(e) service : activities design to improve or maintain a product value. example : training adjustment, buyers inquiries and complaint
the support activities are the activities that improve the effectiveness or efficiency of the primary activities and other support activities in helping the organization achieve its competitive advantages.
this support activities can comprise into :
(a) procurement : responsible for purchasing and providing raw materials, suppliers, services and outsourcing necessary to obtain good quality of inputs with the lower prices.
(b) research and development : important activities which is can create competitive advantages through technology. technology development takes many forms such as process equipment, basis research and product design and servicing procedures.
(c) human resources management : important function because it deals with employees. the firm must have plan for the recruitment, selection, training and development, and rewards and remuneration of all types of personnel effectively.
(d) firm infrastructure : to ensure that their general management, planning, finance, accounting, legal support and overnmental relations are required to support the work of the entire value chain works effectively.
we will see in the next corporate level strategies post.
thank you
No comments:
Post a Comment