QUESTION Illustrate how value chain activities can become core competencies and

eventually distinctive competencies. Give an example for an organization you are familiar
with.

answer: Identifying activities that carry a value from the very first process that begins
with to the last process that finally produce the product or sewice to the customer is
called value chain activities and analyzing these activities is value chain analysis.
To initiate and execute value chain activities, each activity or process of the operation should
be distinctively identified. And each activity so identified carries value or cost.
One should be more careful while conducting value chain activity because several complex
activities are involved in it and each activity may act positively or negatively on other item of

When the cost data of each process is converted into information, it provides the strength and
weakness of competitive cost that can bring competitive advantage or disadvantage.
The total cost of all activities in a company is the cost of running the business.
However, through value chain activities core competency should be achieved and converted
into distinctive competence
The value derived from value chain activity of a company is core competence.

A company that is familiar to all is Toyota Motor Corporation, manufactures of cars in the globe.
any has developed its value chain activity so well that it provides details of time and material
to produce the end product or sewice to the customer.
ny has initiated this activity through creating and developing bill of material, which is a chart
details of materials, nature of activity and time consumed to attain its shape as a final product

This study source was downloaded by 100000848616065 from CourseHero.com on 07-08-2022 10:37:12 GMT -05:00
ates to run its value chain activity efficiently so that it will get required information at short
can control its cost and price to attain distinctive competency.
ng and controlling cost and price, Toyota Motor Corporation is able to sustain and emerge as
major and important player as auto maker even when the market is volatile and customer
fting.

This study source was downloaded by 100000848616065 from CourseHero.com on 07-08-2022 10:37:12 GMT -05:00
Powered by TCPDF (www.tcpdf.org)