Value Chain and Components Used for Value Creation Questions

Question Description

This assignment covers chapter three, Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability, and chapter four, Building Competitive Advantage through Functional-Level Strategy.

Chapter 3 Questions:

Define value creation and the components that can be used to determine value creation per unit. How value creation is related to competitive advantage?
What is a value chain? Why is efficiency so important in an organizations’ value chain activities?
What building blocks in value creation can an organization use to sustain competitive advantage?
What does internal analysis help a company to determine? How does this process contribute to the overall health (value creation, competitive advantage, profitability) of the company?
Why do companies fail? How does competitive advantage relate to failure?

Chapter 4 Questions:

What are functional level strategies? How can functional level strategy contribute to efficiency?
Describe economies of scale and how it relates to competitive advantage. What strategic significance does economies of scale have for a company?
How does innovation relate to competitive advantage? What can be done to sustain innovation in a company?
How does customer relations contribute to competitive advantage? What is the effect of customer relations on value creation and its components?

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