ENT 555 - Managing Small and Medium Enterprises

Running head: Critical analysis business integration
Critical analysis business integration
NAME OF STUDENT:
NAME OF COLLEGE:
AUTHORS NOTE:
1

Critical analysis business integration
Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
2

Critical analysis business integration
Introduction
Value chain analysis is a useful tool in strategic management which helps in analysing the
internal activities of a business. The main goal of the value chain analysis is to identify which
activities are the most valuable activities of a firm and which activities could be further improved
in order to create competitive advantage for the firm in the market. This report focuses on the
value chain analysis of two public companies of Australia and accordingly identifies
opportunities for a fictitious small business in order to mimic their approach for gaining
competitive advantage.
Discussion
The value chain activities can be classified into primary activities and support activities. The
primary activities of the value chain activities are inbound logistics, operations, outbound
logistics, marketing and sales, services. The support activities of a value chain are infrastructure
of the business, procurement, management of human resources and technology.
The value chain analysis of Coles is as follows:
The value chain analysis is the process through which the Coles supermarket has divided its
value creation activities. The goal of the activities at Coles is to offer customer values which
surpasses the cost related with the activities and therefore helps in creating a margin of profit for
the company. All the activities of Coles are aimed towards attaining and delivering the activities
of the company. The analysis of the primary activities at Coles is as follows:
In-bound logistics- Being a retailer, Coles does not manufacture the products which it sells
through its stores and therefore they control the distribution network of the products.
Procurement and logistics are the two main activities which helps the company to deliver on its
promise. The products of the company which are received from the producer are transported
directly to the national or regional distribution centre where the qualities of the products are
checked before it is distributed to various stores of the company.
Operations- The operation activity of the company cover two primary activities which ensures
customer, convenience and value, improved quality assessment and proper management of the
3