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    and explore the value chain analysis and the internal analysis in the strategic management. The focus of this report is to study the value chain analysis in detail along with the advantages and disadvantage of the value chain analysis. Also, the internal analysis is also discussed along with its pros and cons and the SWOT analysis of Next Plc. This report also discusses the way in which organizational resources are mixed to develop company’s abilities, Value Chain Analysis Keane (2008) stated to

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    Value Chain Analysis

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    organization should adopt the various application of information technology. This will put the organization at the forefront in terms of innovation as well as give the organization a competitive advantage (Hitt & Robert, 2011, p.10). Value chain analysis is a model that was developed by Michael Porter to help an organization develop a strategy for its organization. Michael porter suggested that organization activities can be grouped into two major categories which include

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    Value Chain Analysis Value chain analysis consists of two activities: 1) Primary Activities 2) Support Activities A. Primary Activities 1. Inbound Logistics a) A hub and spoke model network is a centralized network with hub as the center having integrated logistics system designed to keep costs down. Hub and spoke distribution different centers in different regions to receive products, consolidate them at the hub, and send them directly to their respective destinations. b) Fedex has Hub & Spoke

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    The purpose of this paper is to do a value chain analysis of Costco, identify their resources and capabilities, to conduct a SWOT analysis to identify the opportunities in which they are lagging and to form a strategy to move forward using the recourses and capabilities in the direction of utilizing those opportunities. Value Chain Analysis for Costco Conducting a value chain analysis provides a snapshot for identifying a firm’s relative competitive performance, core competencies, and for focusing

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    firms can gain a competitive advantage, it is useful to model the firm as a chain of value creating activities. For this purpose, Porter identified a range of interrelated generic activities common to a wide range of firms. The resulting model is known as the value chain. According to Porter (1985), " Competitive Advantage arises out of the way firms organise and arrange discrete activities". Through using the Value Chain, the activities performed by a firm competing in a particular industry can

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    Value Chain Analysis Value Chain Analysis is a tool that used to identify the company’s primary and support activities that can creates value for the product to the customers, to analyze the activities to be cost leadership or differentiation strategy and eventually to develop a competitive advantage and create shareholders value. By simply explaining of creating value, a company takes raw inputs (timber) and to add “value” (designing and manufacturing) to them by converting them into something of

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    Introduction Value chain analysis has proven to be a useful tool for knowing how an organization can create the greatest value for its customers. Michael Porter (1985) in his book competitive advantage states that “understanding how a business creates value are essential elements for developing a competitive advantage.” [1]. According to porter (1985) value chain is “the process view of an organization, the idea of seeing an organization as a system, made up of subsystems each with inputs, transformation

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    value chain shows the internal steps a company or organization takes to transform inputs into outputs (Jurevicius, 2013). As the products pass through each stage or activity, value is added until they ultimately are ready to reach the consumer. Value chain analysis a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation (Jurevicius, 2013). The use of value chain analysis

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    4.2 Value Chain Analysis The Value chain portrays all the internal activities that a firm undergoes to convert inputs into outputs. Consequently, value chain analysis is when a firm recognizes the primary and support activities that contribute in adding value to the final product, then analyze these activities in accordance to the firms strategy of either reducing costs or increasing differentiation (Jurevicius, 2013). (Figure 1) 4.2.1 Primary Activities • Inbound Logistics Referring to Mr

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    Tesco PLC (Tesco, 2014). The success of Tesco lies in its strategic management. This analysis will look into Tesco’s business in the UK by following a structure of four main parts: Tesco’s value chain management; Tesco’s important stakeholders and its managing them; Tesco’s attempt in competing with other rivals and finally, potential international opportunities for Tesco to get more profit. QUESTION 1: “The value chain identifies where the value is added in an organization and links the process with

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