Business Strategy Report: Value Chain, Competitive Advantages

This report provides an analysis of key business strategy components. It begins by defining and exploring the primary and supportive activities within an organization's value chain. The report then delves into the criteria for sustaining competitive advantages, examining strategies such as focused marketing, cost advantages, and technology implementation. It also discusses the advantages and disadvantages of financial ratio analysis, the concept of the balanced scorecard, and the importance of recognizing interdependence in attracting, retaining, and developing talented professionals. Potential downsides for companies engaging in talent wars are also considered, along with the role of technology in leveraging human capital and knowledge. The report draws on academic sources to support its arguments and provide a comprehensive overview of the topics discussed.

Internal environment and
intellectual assets / business
level strategy and competitive
dynamic

Table of Contents
1. Primary and supportive activities in organization's value chain..............................................1
2. Criteria for sustainability of competitive advantages..............................................................1
3. Advantages and disadvantage of conducting the financial ration analysis of company..........2
4. Concept of balanced scorecard and its advantages..................................................................2
5. Importance to recognize interdependence in attraction, retention and development of
talented professionals...................................................................................................................2
6. Potential downsides for companies .........................................................................................3
7. Role of technology in leveraging human capital and knowledge............................................3
REFERENCES................................................................................................................................4

1. Primary and supportive activities in organization's value chain
Value chain is bunch of activities that company in particular industries perform or work
in order to deliver valuable service or product for market (Prajogo and Oke, 2016). It is a
business model that describe entire range of functions required to create facilities or goods.
Primary and supportive activities are two types of value chain.
Primary activities-
 Inbound
 Operations
 Outbound logistics
 Sales and marketing
Supportive activities-
 Procurement
 General administration
 Human resource management
 Technology development
2. Criteria for sustainability of competitive advantages
Company sustain competitive advantages for longer is they used many techniques and
make plans for sustainability of it.
 Focus marketing strategies- Through focusing on marketing strategies or plans
organization can sustain and garb competitive advantages for long term period. They can
make new strategies based on environmental situations which helps to gain profit.
 Cost advantages- Business competes on product price, they can get sustainable
competitive benefits through setting price of goods lower than its competitors which
helps to grab the attention of customers and increase profitability and productivity more
than before.
 Technology implementation- technology implementation is another source or way to
sustain competitive advantages in business.
 Products quality- Company retain competitive advantages by focusing on products
quality.
3. Advantages and disadvantage of conducting the financial ration analysis of company
Advantage of conducting financial ratio analysis-
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Ratio Analysis compares data from organizations financial statements to reveal insights
company's regarding liquidity, solvency, profitability and operational efficiency. It is used to see
trends overtime for one firm and also used to compare firms within the industry with another.
With the help of analysing financial ration of firm, it able to understand its weakness, identify
strength, opportunities and threat, which they need to reduce and overcome within it. Financial
ratio analysis help to identify issues areas and provide appropriate knowledge about operational
effectiveness.
Disadvantage-
Financial ratio analysis of company consume a lot of time, the whole work get affected
due to this longer term process.
4. Concept of balanced scorecard and its advantages
Balanced scorecard is strategic performance measurement model, its purpose is to
translate the company vision and mission into operational actions and strategic planning.
Performance measures used in balanced scorecard formulation tend to fall into some groups such
as financial, learning, customers, growth and internal business procedure. Better strategic
planning is the key advantage for organization using balanced scorecard. It gives powerful
framework for communicating and building strategy. It helps to guide design of work or
performance dashboards and reports. It supports to assure that firm management reporting
centring on most essential strategies problems and helps organizations to monitor execution of its
plan.
5. Importance to recognize interdependence in attraction, retention and development of talented
professionals
Manager need to recognize mutuality in attraction, retention and development of talented
professionals. It is very important to know about need to development and training, as it helps to
build market reputation and increase profitability more than before (Teece, 2014). Attraction is
the best way to hire talented people in firm, marketing department make plans based on
attracting people. With the helps of job marketing company can hire skilled candidates. Manager
recognize need of development which is essential for business success and growth. With the
helps of development session company can improve knowledge of their exciting and new
workers. Recognition procedure help to identify issues areas and area where they need to
improve.
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6. Potential downsides for companies
War for talent is companies strategy develop to attract talented worker form another firm,
retain skilled professionals by offering good salary packages than its market competitors. If
company engage in war for talent some potential drawbacks impact on their business. Existing
workers and skilled people leave organization, if they realize that another company offer the best
salary package to people. Company can hire more skilled and knowledge applicant in this
situation that helps to run business effectively.
7. Role of technology in leveraging human capital and knowledge
Technology helps to retain knowledge even when workers cannot be retained by
company. With the help to use new technologies in business structure employees can improve
their knowledge and develop skills more than before (Grant, 2016). Technology implementation
leverage human resource skills and abilities, development and training session in context of
technology contribute to increase their working interest. Technology lower cost of manufacturing
product or services, as it helps to improve workers performance and enhance their productivity.
With technologies and using new techniques within firm they can create values effectively. It
supports to gain competitive advantages and gain more profit better than competitors in
marketplace.
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REFERENCES
Books and Journals
Prajogo, D.I. and Oke, A., 2016. Human capital, service innovation advantage, and business
performance: The moderating roles of dynamic and competitive
environments. International Journal of Operations & Production Management. 36(9).
pp.974-994.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Teece, D.J., 2014. A dynamic capabilities-based entrepreneurial theory of the multinational
enterprise. Journal of International Business Studies. 45(1). pp.8-37.
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