TM Week 8 Higher Diploma in Business Management and Marketing Lecturer Susan Simei-Cunningham.
CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.
-
Upload
blaise-august-lawrence -
Category
Documents
-
view
216 -
download
1
Transcript of CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.
![Page 1: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/1.jpg)
CBMWeek 2
CORPORATE AND BUSINESS MANAGEMENT
Susan Simei-Cunningham
![Page 2: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/2.jpg)
CBMWeek 2
HOW TO ACHIEVE SUSTAINABLE COMPETITIVE ADVANTAGE
![Page 3: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/3.jpg)
CBMWeek 2
Learning Outcomes
• By the end of this session the student will be able to:
• Discuss and critically evaluate approach to diagnosing and developing sustainable competitive advantage for an orgainsation
![Page 4: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/4.jpg)
CBMWeek 2
Recap
• Last week we reviewed analytical tools .
• Value chain• McKinseys 7 ‘s• Porters competitive strategies and five
forces models
![Page 5: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/5.jpg)
CBMWeek 2
COMPETITIVE ADVANTAGE
![Page 6: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/6.jpg)
CBMWeek 2
As the environment is changing rapidly, organisation have to achieve competitive advantage.
Organisations therefore need to take care of three key areas;identifying sources of competitive advantageimplementing competitive advantagedefending competitive advantage
![Page 7: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/7.jpg)
CBMWeek 2
HOW TO ACHIEVE SUSTAINABLE COMPETITIVE ADVANTAGE THROUGH COST LEADERSHIP
![Page 8: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/8.jpg)
CBMWeek 2
The Value Chain Model
Porter Value Chain model is important to sustainable competitive advantage.
Why?
![Page 9: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/9.jpg)
CBMWeek 2
Porter Value Chain Model
![Page 10: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/10.jpg)
CBMWeek 2
The Value Chain Model
Value chain analysis describes the activities within and around an organization, and relates them to an analysis of the competitive strength of the organization.
Therefore, it evaluates the value each particular activities adds to the organizations products or services.
![Page 11: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/11.jpg)
CBMWeek 2
The Source of Competitive Advantage
Porter argues that the ability to perform particular activities and to manage the linkages between these activities is a source of competitive advantage.
![Page 12: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/12.jpg)
CBMWeek 2
Competitive Advantage
• Michael Porter, in his book, Competitive Advantage: Creating and Sustaining Superior Performance, 1985, states that competitive advantages exists when an organisation is able to deliver the same benefits as a competitor but at a lower rate.
• (Cost advantage)
![Page 13: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/13.jpg)
CBMWeek 2
Competitive Advantage
• Delivering benefits that exceed those of your competitors.
• (Differentiation advantage)
• Together they are known as Positional Advantage
![Page 14: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/14.jpg)
CBMWeek 2
A Model of Competitive Advantage
Distinctive Competencies
Resources
Capabilities
Cost Advantage or Differentiation
Advantage
Value Creation
![Page 15: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/15.jpg)
CBMWeek 2
The Value Chain Model
The organisation is creates value by carrying out a series of activities that Porter calls the value chain.
![Page 16: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/16.jpg)
CBMWeek 2
Achieving cost leadership through economies of scale • Cost leadership can be implemented in a
number of ways; companies can use economies of scale.
• How can I achieve this?
![Page 17: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/17.jpg)
CBMWeek 2
Porters Five Forces and Cost Leadership• Where is the connection?
![Page 18: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/18.jpg)
CBMWeek 2
Video
• http://www.bing.com/videos/search?q=sustaining+competitive+advantage&sk=&docid=278531212030&mid=1A1CABA79BD5E50160721A1CABA79BD5E5016072&FORM=LKVR#
![Page 19: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/19.jpg)
CBMWeek 2
Tasks
• http://www.oup.com/uk/orc/bin/9780199216468/01student/mcqs/ch06/
• Read - http://ericbrown.com/competitive-advantage-and-the-resource-based-view-of-the-firm.htm
• Then complete• http://www.oup.com/uk/orc/bin/
9780199216468/01student/mcqs/
![Page 20: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/20.jpg)
CBMWeek 2
Summarise
• There are many ways to achieve competitive advantage . Environmental analysis is crucial but all concepts and theories must be integrated to maintain the edge.
![Page 21: CBM Week 2 CORPORATE AND BUSINESS MANAGEMENT Susan Simei-Cunningham.](https://reader035.fdocuments.in/reader035/viewer/2022062715/56649d875503460f94a6c682/html5/thumbnails/21.jpg)
CBMWeek 2
Homework
• Research and write notes on achieving sustainable competitive advantage.