When a organisation sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage.
Porter identifies 2 types of Competitive Advantage:
A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.
Supply-chain models rely on the Internet to transfer information electronically, which underpins communication and collaboration between businesses along the supply-chain. Using the Internet in this way has a number of benefits:
saving money and time by removing paper transactions and speeding up response times
reducing errors in the information passed along the supply-chain by avoiding re-keying data
improving satisfaction of customers or suppliers with delivery of information in ‘real time’
integration of dispatch and distribution data with product development data at each node of the supply-chain, resulting in real cost savings.
Next Week Begin lab 2 and complete by end of Week 4 Continue studying for your in-class writing assignment Complete Lab 3 by the end of the week Continue studying for your in-class writing assignment For this week…