The document discusses sources of competitive advantage and how to sustain them. It identifies four main sources: structural advantage through economies of scale; strong frontline execution; insight and foresight to anticipate changes; and lower costs. It also discusses differentiation and analyzing value chains to understand customer needs and find unique ways to meet them better than competitors. Sustaining advantage requires designing strategy for robustness against threats like imitation and substitution, and having an agile organization that can learn and adapt over time.
Practically Applying Sourcing Grids for Risk Management Thomas Tanel
Purchasing and supply management have never been easy. The past several years have caused many executives and professionals to lose more sleep and gain more gray hair (or lose more hair) than usual; therefore, the next decade requires upgraded skill sets to survive.
Portfolio analysis is one of the most powerful techniques
used by the purchaser, despite its simplicity. It is a simple “grid” tool that charts the amount we spend on products or services and the complexity of its acquisition.
Portfolio analysis helps us define our sourcing strategy and the best sourcing techniques to use dependent upon the position on the sourcing grid. It also defines the relationships (supplier positioning) we need to have with our key suppliers and gives us an insight in how the key suppliers may see us in perception model. It allows you to organize your time and
resources for maximum benefit and it encourages strategic thinking and analysis to reduce cost, add value, and minimize risk.
Value chain analysis helps only in identifying the strengths and weaknesses of each elements of firm’s value chain. SWOT can not be used to identify external opportunities and threats. It is a situation analysis of the organization. It is a groundwork for matching the strategy both to the external market and internal resources. It is away to analyze a firm’s internal and external situations.
Practically Applying Sourcing Grids for Risk Management Thomas Tanel
Purchasing and supply management have never been easy. The past several years have caused many executives and professionals to lose more sleep and gain more gray hair (or lose more hair) than usual; therefore, the next decade requires upgraded skill sets to survive.
Portfolio analysis is one of the most powerful techniques
used by the purchaser, despite its simplicity. It is a simple “grid” tool that charts the amount we spend on products or services and the complexity of its acquisition.
Portfolio analysis helps us define our sourcing strategy and the best sourcing techniques to use dependent upon the position on the sourcing grid. It also defines the relationships (supplier positioning) we need to have with our key suppliers and gives us an insight in how the key suppliers may see us in perception model. It allows you to organize your time and
resources for maximum benefit and it encourages strategic thinking and analysis to reduce cost, add value, and minimize risk.
Value chain analysis helps only in identifying the strengths and weaknesses of each elements of firm’s value chain. SWOT can not be used to identify external opportunities and threats. It is a situation analysis of the organization. It is a groundwork for matching the strategy both to the external market and internal resources. It is away to analyze a firm’s internal and external situations.
Value Chain Analysis
Value, Value Chain, Value Chain System, Component of Value Chain, Importance and usage of Value Chain, Primary and Secondary activities in Value Chain, Conclusion.
Importance of having a right Sourcing strategy is key to success for CXO. It has to be correct blend of partners both internal as well as external. The strategy can be arrived only if business goals are understood correctly. This deck shares an approach and ways to arrive at IT Sourcing Strategy.
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyThomas Tanel
This presentation will focus on developing the sourcing strategy as a fundamental and logical process involving the application of tools by skilled, competent, and knowledgeable purchasers. Simply put, our focus will be on the “how to” in developing a sourcing strategy. Are you experienced?
Topics that will be addressed include spend analysis, categorizing the best opportunities for sourcing group profiles, Porter’s Five Force Model and Sourcing Grids, establishing sourcing group portfolios and supplier portfolios, using the proper RFX format for sourcing, and making strategic sourcing the focal point for supplier negotiations. Participants will view “good practice” examples of the above.
If you find yourself “walking the tightrope” with a strategic sourcing initiative or an ongoing effort, you’ll get valuable information in developing your sourcing strategy. With our five phase approach, we will discuss the following “how to”:
1. Develop sourcing strategies differentiated by expenditure category and based on market dynamics.
2. Deeply involve end-users in sourcing for knowledge and buy-in.
3. Apply a rigorous sourcing approach that examines internal needs against supply market options to find the lowest total cost.
4. Challenge specifications and usage patterns to ensure that each expenditure is providing the best value for the company.
5. Identify, analyze, select, and negotiate with strategically advantaged suppliers, not just the ones with the lowest price today.
This presentation will conclude with a presentation review that can refine your understanding of the factors, tools, and guidelines you need to make your sourcing process more effective and more profitable for your organization.
Value Chain Analysis
Value, Value Chain, Value Chain System, Component of Value Chain, Importance and usage of Value Chain, Primary and Secondary activities in Value Chain, Conclusion.
Importance of having a right Sourcing strategy is key to success for CXO. It has to be correct blend of partners both internal as well as external. The strategy can be arrived only if business goals are understood correctly. This deck shares an approach and ways to arrive at IT Sourcing Strategy.
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyThomas Tanel
This presentation will focus on developing the sourcing strategy as a fundamental and logical process involving the application of tools by skilled, competent, and knowledgeable purchasers. Simply put, our focus will be on the “how to” in developing a sourcing strategy. Are you experienced?
Topics that will be addressed include spend analysis, categorizing the best opportunities for sourcing group profiles, Porter’s Five Force Model and Sourcing Grids, establishing sourcing group portfolios and supplier portfolios, using the proper RFX format for sourcing, and making strategic sourcing the focal point for supplier negotiations. Participants will view “good practice” examples of the above.
If you find yourself “walking the tightrope” with a strategic sourcing initiative or an ongoing effort, you’ll get valuable information in developing your sourcing strategy. With our five phase approach, we will discuss the following “how to”:
1. Develop sourcing strategies differentiated by expenditure category and based on market dynamics.
2. Deeply involve end-users in sourcing for knowledge and buy-in.
3. Apply a rigorous sourcing approach that examines internal needs against supply market options to find the lowest total cost.
4. Challenge specifications and usage patterns to ensure that each expenditure is providing the best value for the company.
5. Identify, analyze, select, and negotiate with strategically advantaged suppliers, not just the ones with the lowest price today.
This presentation will conclude with a presentation review that can refine your understanding of the factors, tools, and guidelines you need to make your sourcing process more effective and more profitable for your organization.
Strategic Information Systems for Competitive Advantage-1.pptsantoshsahu622005
As the name suggests, there are two aspects to this business strategy. The “Focus” refers to when a company focuses on a niche market, either by industry or geography, and becomes the expert in delivering for that industry.
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Memorandum Of Association Constitution of Company.pptseri bangash
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
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Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
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15. Ranked Buyer Purchase Criteria - Example Content Format Layout Price Subscription Frequency Advertising Distribution Market position Display in stores Availability Speed of distribution Online version Promotional support Reliability Audience Sales per issue Online community Signaling Criteria Use Criteria End User Channels
16. Activities that Influence Buyer purchase criteria Inbound Logistics USER CRITERIA SIGNALING CRITERIA Operations Outbound Criteria Marketing & Sales Service Procurement Technology Development HR Management Firm infrastructure Conformance to specifications Delivery time Features Sales force quality Sales aids Attractiveness of facilities x x x x x x x x x x x x x x x x x x x
There are three major sources of structural advantage: Economies of scale occur when the cost decreases as output increases, conferring an advantage to larger players Vertical market failure occurs when costs and risks of transaction between players across the value chain and/or frequency of transactions and assets specifically are high. When buyers and sellers need to deal with each other only once or occasionally, vertical integration is usually not necessary. This is easy to understand when asset specificity is low because markets can operate effectively using standard contracts such as leases and credit sale agreements. It is, however, also true when asset specificity is high and a post-investment bilateral monopoly is likely Limited access to privileged assets is also a source of structural advantage. Privileged assets can be brand (e.g. Coca Cola), relationships, technology (e.g. Microsoft), patents, location, etc
Exceptional execution can be a source of competitive advantage. It allows a company to differentiate its performance at critical parts of the business system, such as customer service, delivery efficiency and effectiveness, and low product/service cost.
Insight/foresight is the ability to generate superior knowledge through creative, technical, or scientific insight. Companies that possess insight/foresight capabilities can look at the same data competitors have and draw out unconventional insights and foresights about an industry’s future and the opportunities that will be created. In addition, they deal with uncertainty – and minimize risk – by thinking creatively about options that will help them shape leadership positions or adapt quickly as the future unfolds. They stay tuned into what customers value and develop differentiated products and services accordingly. They are highly aware of the strengths and weaknesses of their organization relative to competitors and factor that into their strategies and implementation.
Strategic cost analysis requires several important steps: The starting point is to define firm’s value chain and to assign operating costs and assets to value activities. For purposes of cost analysis, the generic value chain is split into individual value activities and should reflect 3 principles: (1)the size and growth of cost represented by activity,(2) the cost behavior of activity, (3) competitor differences in performing the activity. After identifying its value chain, firm must assign operating costs and assets to value activities. Assigning costs and assets does not require the precision needed for financial reporting purposes. Estimates are more than sufficient to highlight strategic cost issues. Second step in cost analysis is cost drivers diagnose. Cost drivers are structural causes of the cost of an activity and can be more or less under firm’s control. Drivers often interact to determine the cost behavior of a particular activity and include: economies of scale – arise from the ability to perform activities differently and more efficiently at larger volume, or from the ability to amortize the cost of intangibles such as advertising and R&D over a greater volume of sales. Learning – can lower costs over time by different mechanisms: layout changes, improved scheduling, product design modification, etc The pattern of capacity utilization – seasonality, cyclicality of production, demand of supply fluctuation, etc. Changes in the level of capacity utilization will involve costs of expanding and contracting, so that a firm that changes its utilization will have higher costs than a firm that keeps its utilization constant, though they both have the same average utilization Linkages – cost of a value activity is affected by how other activities are performed Interrelationships – sharing a value activity with a sister unit, sharing know-how between separate but similar value activities can significantly low costs Integration can for example avoid the costs such as transportation if the firm has its own car park. Timing – for example a firm may gain firs-mover advantages from being among the first to take a particular action Discretionary policies: product configuration, performance, delivery time, spending rate on marketing and technology development, wages paid, hiring policies, training, scheduling, etc Locations – differ in the prevailing costs of labor, management, energy, taxes, etc Institutional factors – governmental regulation, tax holidays, financial incentives, tariffs levels, CNA regulation, brand identification and reservation (OSIM), etc 3. Identify competitor value chains (difficult), and determine the relative cost of competitors and the sources of cost differences.
4. Develop strategy to lower relative cost position and gain cost advantage through: Controlling cost drivers and/or Reconfiguring the value chain (different and more efficient way of design, produce, distribute or market the product) 5. Ensure that cost reduction efforts do not erode differentiation (another source of competitive advantage), or make a choice to maintain differentiation competitive advantage 6. Test the cost reduction strategy for sustainability. Cost advantage will result following the described strategy only if the firm can sustain it. Improving relative cost position in unsustainable ways may allow firm to maintain cost parity or proximity but a firm attempting to achieve cost leadership strategy must also develop sustainable sources of cost advantage. Cost advantage is sustainable if there are entry or mobility barriers that prevent competitors from imitating its sources: Scale – is a key barrier, and the cost of replicating scale is high because competitors must buy share Interrelationships – with sister business units can force a competitor to diversify in order to match a cost advantage. If there are entry barriers into related industries, the sustainability can be high. Linkages – are often difficult to detect and require coordination across organizational lines or with independent suppliers and channels. Proprietary learning –it can be hard for competitors to catch up if learning can be kept proprietary Policy choices to create proprietary product or process technology. Replicating product innovations often poses great difficulties for competitors if innovation is protected by patents or secrecy.
A firm uniqueness in a value activity is determined by a series of basic drivers, analogue to the cost drivers: Policy choices (product features and performance offered, services provided, content, technology employed, quality of inputs, personnel procedures, skill and experience level of personnel employed, training, etc) Linkages within the value chain and also linkages with suppliers, customers, competitors, etc Timing – uniqueness may result from when a firm began performing an activity Location – convenient sale points positions Interrelationships – sharing with sister unit may increase the quality of services Learning – only proprietary learning leads to sustainable differentiation Integration – may provide more activities to be source of differentiation Scale – large scale allow an activity to be performed in a unique way that is not possible at smaller volume. In some cases, however, scale can work against the uniqueness (may reduce for example flexibility or fashion-related firms to buyer needs) Institutional Factors – unique job definitions for employees
A firm can enhance its differentiation in two basic ways: Become more unique in performing its existing value activities. Sources of uniqueness: Proliferate the sources of differentiation in the value chain Make actual product use consistent intended use (understand buyers’ needs and modify product accordingly) Employ signals of value to reinforce differentiation on use criteria (advertising) Exploit all sources of differentiation that are not costly (a firm may be able to differentiate itself simply by coordinating better internally or with suppliers or channels) Reduce cost in activities that do not affect buyer value Shift the decision maker to make a firm’s uniqueness more valuable (deploying a new type a sales person, changing advertising media and content, changing selling materials, etc) 2.Reconfigure its value chain in some way that enhances its uniqueness (new distribution channel or selling approach, new process technology, etc)
A firm differentiates itself from its competitors if it an be unique at something that is valuable to buyers, beyond simply offering a low price. Firm differentiation with respect to other competitors implies several steps: Determine who the real buyer is . Is important to analyze your direct consumer and define their behavior relative to firms product. A number of differentiating factors at this level can result from broad competitive scope: Ability to serve buyer needs anywhere Simplified maintenance for buyer is spare parts and design are common for a wide line Single point at which the buyer can purchase Single point for customer service Superior compatibility among products, etc 2. Identify the buyer’s value chain and firm’s impact on it. Uniqueness does not lead to differentiation unless it is valuable to the buyer. There are two mechanisms to do so: by lowering buyer cost (by lower delivery, financing cost, lower required rate of usage, lower direct and indirect cost, lower the buyer cost, lower risk of product failure, etc) and by raising buyer performance (better satisfying needs) . This mechanisms are implemented through the impact of firm’s value chain on buyer value chain. Every impact of a firm on its value buyer’s value chain, including every link between firm and buyer activities, represents a possible opportunity for differentiation. 3. Determine ranked buyer purchasing criteria. Buyer purchasing criteria can be divided in two types: Use criteria (the way in which a supplier affects actual buyer value through lowering buyer cost or raising buyer performance; include product quality, features, delivery time, etc) and Signaling criteria (advertising, attractiveness of facilities, reputation). Example in slide 67.
4.Assess the existing and potential sources of uniqueness in a firm’s value chain. Differentiation can steam from uniqueness throughout firm’s value chain. The firm must determine which value activities impact each purchase criteria (example slide 68). Then, it must identify its existing sources of uniqueness relative to competitors. 5.Identify cost of existing and potential sources of differentiation. The cost of differentiation is a function of the cost drivers of the activities that lead to it. The firm deliberately spends more in some activities to be unique. the cost of differentiation will vary by value activity and the firm should choose those activities where the contribution to buyer value is greatest relative to the cost. This may imply pursuing low cost sources of uniqueness as well as high cost ones that have high buyer value. 6.Choose the configuration of activities that creates the most valuable differentiation for the buyer relative to cost of differentiation. Differentiation strategy aims to create the largest gap between the buyer value created (and hence the resulting premium) and the cost of uniqueness in the firm’s value chain. 7.Test the differentiation strategy for sustainability. Differentiation will not lead to superior performance unless it is sustainable against erosion and imitation. Differentiation will be more sustainable under the following conditions: The firm’s sources of uniqueness involve barriers The firm has a cost advantage in differentiation The sources of differentiation are multiple The firms creates switching costs at the same time it differentiates (switching costs are fixed costs incurred by the buyer when it changes suppliers, which allow a firm to sustain a price premium even if its product is equal to that of competitors)
Buyer purchasing criteria can be divided in two types: Use criteria (the way in which a supplier affects actual buyer value through lowering buyer cost or raising buyer performance; include product quality, features, delivery time, etc) and Signaling criteria (advertising, attractiveness of facilities, reputation). The above example illustrates purchase criteria for a particular newspaper.
The above figure illustrates how purchase criteria can be arrayed against value activities to help a firm identify the activities important to differentiation.
If one of the answers to the three question is “NO”, then your strategy does not follow the rules of effectiveness in a competitive environment.
The above figure displays Dell’s Internal Activities configured in order to establish advantages with respect to other competitors. Te figure demonstrates Dell’s Activities internal consistency, all the parts of the strategy fitting together to form a whole.