An Organization Should Approach All Tasks With The Idea That They Can Be Accomplished In A Superior Fashion An organization capability refers to the way systems and people in the organization work together to get things done. The way leaders foster shared mindsets, orchestrate talent, encourage speed of change, collaborate across boundaries, and learn and hold each other accountable define the company's culture and leadership edge. The firm’s ability to manage people to gain competitive advantage. • focuses on internal processes and systems for meeting customer needs • creates organization-specific competencies that provide competitive advantage since they are unique • ensures that employee skills and efforts are directed toward achieving organizational goals and strategies  A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product. EXAMPLES  The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).  OSHA standards are generally legally binding for an employer,  while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.  “ Value Chain Analysis (VCA) is a process where a firm identifies its primary and support activities that add to its final product and then analysis to reduce costs or increase differentiation.”  “ Value Chain represents the internal activities a firm engages in when transforming inputs into outputs.”  Organizational Appraisal is the process of monitoring an organization’s internal environment to identify strengths and weaknesses that may influence the firms ability to achieve GOALS. It include identifying strengths and weaknesses.  A document issued by a recognized agency, and dealing with design and safety requirements relating to a specific product. EXAMPLES  The U.S. Occupational Safety and Health Administration (051-IA) and the American National Standards Institute (ANSI).  OSHA standards are generally legally binding for an employer,  while ANSI standards are generally of an advisory nature. set industry standards with input from industry representatives and consumers.  A measurement of the quality of an organization's policies, products, programs, strategies, etc., and their comparison with standard measurements, or similar measurements of its peers.

1. Methods and Techniques used
for organization Appraisal
VALUE CHAIN ANALYSIS

2. Introduction
• “ Value Chain Analysis (VCA) is a process where a firm identifies its
primary and support activities that add to its final product and then
analysis to reduce costs or increase differentiation.”
• “ Value Chain represents the internal activities a firm engages in
when transforming inputs into outputs.”

3. • “ 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.”
__ Michael Porter

4. Value Chain Analysis
• Value Chain Analysis (VCA) is a strategy tool used to analyze internal
firm activities.
• Its goal is to recognise, which activity are most valuable ( i.e. are the
source of cost or differentiation advantage ) to the firm and which
ones could be improved to provide competitive advantage.

5. Value Chain Analysis
• The firm that competes through DIFFERENTIATION ADVANTAGE will
try to perform its activities better than competitors would do.
• If it competes through COST ADVANTAGE, it will try to perform
internal activities at lower costs than competitors would be.

8. Primary Activity

9. •Inbound Logistics: arranging the inbound movement
of materials , parts , and/for finish inventory from suppliers to
manufacturing or assembly plants , warehouses , or retail stores.
•Operations: concerned with managing the process that
converts inputs into outputs.
•Outbound Logistics: is the process related to the
storage and movement of the final product and the related
information flows from the end of the production line to the end
users.

10. • Marketing and Sales : selling a product or services and processes for
creating , communicating , delivering and exchanging offerings that
have for customers , clients , partner , and society at large.
• Services : includes all the activities required to keep the
product/services working effectively for the buyer after it is sold and
delivered.

15. Secondary Activity

16. • Procurement : the acquisition of goods, services or works from an
outside external source.
• Human Resources Management: consists of all activities involved in
recruiting , hiring , developing , compensating , and dismissing or
laying off personnel.

17. • Technological Development: pertains to the equipment , hardware ,
software , procedures and technical knowledge brought to bear in
the firm’s transformation of inputs into outputs.
• Infrastructure: consists of activities such as accounting, legal,
finance, control, public relation, quality assurance, and general
(strategic) management.