Porter’s Value Chain Analysis

Accounting
6 / 3 0 / 2 0 1 9

Accounting 1
Contents
Question 1........................................................................................................................................2
Porter’s Value Chain Analysis.....................................................................................................2
Primary Activities....................................................................................................................2
Secondary Activities................................................................................................................3
Core and Competencies...............................................................................................................4
Suggestions..................................................................................................................................5
Question 2........................................................................................................................................5
Operating income of Dubbledore for 2015 and 2016..................................................................5
Change in operating income from 2015 to 2016.........................................................................6
Type of strategy...........................................................................................................................8
Question 3........................................................................................................................................9
Porter’s Five Forces Model.........................................................................................................9
Recommendations......................................................................................................................10
Question 4......................................................................................................................................12
Competitive strategy..................................................................................................................12
Strategic objectives....................................................................................................................12
Balance scorecard......................................................................................................................13
References......................................................................................................................................16

Accounting 2
Question 1
Porter’s Value Chain Analysis
Primary Activities
Operations
It has been found that the process of manufacturing of Western Cabinet begins with the
customers who visit a showroom. The company provides many options of the cabinet to
customers with the different price level from low cost to high cost of cabinets. Mr. Smith as the
CEO of the organization feels that Western followed a reactive approach to the product mix that
means it promotes the services in the market by satisfying the consumers (Klassen, and
Kalagnanam, 2011). The organization starts manufacturing as per the requirements after the
approval of the customers for the designs of the cabinet. The company takes less time to
manufacture the product such as two or three hours for basic cabinets and two days for
customized ones (Mudambi, and Puck, 2016).
Inbound Logistics
R&D is also considered as the responsible department in the organization in making designs
adjustments to existing cabinets with the motive to ensure that the high quality of the product
which is manufactured by Western Cabinets. The research and development team contains five
full-time equivalents in the marketplace, and it also conducts surveys on customers to take their
feedbacks, then it develops the design of new cabinet for future selling.
Outbound Logistics

Accounting 3
The company installs the cabinets or delivers them to the customer’s home. As per the report, it
has been seen that the organization installation process is working well and the installers have a
great experience of a long time working (Rawlins, De Lange, and Fraser, 2018).
Marketing and sales
The company has a different department of marketing and sales that helps to promote the
cabinets in the market. The company provides various designs for options to consumers to
choose the cabinet style with the various prices from low cost to high cost.
Services
The company manufactures cabinets for consumers but it also provides the extra services to
consumers such as free installation, and delivery. The maintenance services are also given by the
company to its consumers.
Secondary Activities
Procurement
It has been seen that the finished cabinets are delivered and installed by Western’s 25
experienced installers (Klassen, and Kalagnanam, 2011). The price of the cabinet includes the
cost of installation and delivery.
Human resource management
Human resource is the main asset of the organization that helps to attain a higher level of success
in the business. Western Cabinets have a limited number of employees in an organization
because of changing staff and tight labor market. There are 35 designers located throughout the
showrooms in the Western Canadian cities (Klassen, and Kalagnanam, 2011). The company