Harvard Business School Invented The Concept And Believed

1812 WordsMar 13, 20178 Pages
Harvard Business School invented the concept and believed that competitive advantage cannot be understood by looking at a firm as a whole. The disadvantages of a value chain could include a company becoming too segmented and result in a construed conception of the company’s most important values. Thus, the importance of a successful value chain lies within the linkage of the different processes it incorporates. All in all, the value chain can provide organizations a strategic framework for managing the hundreds of activities that go into making the final product. Schott is a multinational, technology-based group of glass manufacturers and developers. The company is involved in a wide variety of fields including: lighting and imaging,…show more content…
Although Schott is has been successful throughout the life of the company, it surely is not thriving. The annual bottom lines of the company continuously fluctuate and significant improvements have been hard to achieve without significant changes to specific processes respective to each facility. Like that of any large organization, company-wide policies make opportunities for change extremely difficult for any specific department or process. As Porter noted, competitive advantage cannot be understood by looking at the firm as a whole and Schott has yet to fully adopt this logic. Much like a waterfall effect, decisions and orders are trickled down throughout the organization based on an employee’s position of power. The company has incorporated a system that rewards diligence opposed to innovative thinking which can lead to a very limited approach to reaching new achievements for the company overall. Schott cannot make significant improvements by incorporating broad changes throughout the organization. Each department within each facility needs to be treated more as a separate, individual entity that can utilize its respective strengths. Schott’s North American facility has a completely different culture and structure compared to that of the main headquarters in Germany, so why are the two not managed to
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