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Do a value chain analysis for the two companies mentioned below.

At the end of the analysis you


should be able to conclude the type of generic strategy that are followed by each firm.
Assume equal allocation for any activity that you might think fit.
X Y
Activities Cost Assets Cost Assets
Buying and warehousing of steel 521 825 135 87
Testing of steel 83 533 39 15
Spare parts for the raw material division 83 533 19 44
Transportation of steel from steel plant to watch factory 23 55 2 2
Design of automated systems for manufacturing 156 153 50 20
Sales Force 78 77 93 113
Print advertising 47 46 39 35
Promotion 31 31 23 26
TV advertising and other brand builing activities 22 31 23 55
Market Research 50 25 42 31
Sales Aid & Technical Literature 45 15 18 5
Order Processing 28 1332 26 35
Shipping of finished materials 111 5330 116 157
Vehicle scheduling for finished products 50 67 15 18
Information system development 47 52 30 28
Manufacturing parts of watches 6559 9194 161 208
Assembling the watch 927 1532 39 102
Testing of watch 927 1532 26 30
Maintainence of operations 1853 3065 96 38
Design of automated systems for inventory management 130 110 40 20
Energy management systems for operations 26 40 10 5
General management 322 150 92 128
Strategic Planning 124 533 20 28
Legal 311 240 38 53
Government Affairs 62 266 17 23
Service Representatives 28 133 13 19
Selling of Spare Parts 111 533 3 5
Maintainence of distribution network 23 55 20 30
Transportation for distribution of watches 23 55 10 12
Buying of other accessories other than steel (eg. Glass, belts etc) 18 23 2 3
Manufacturing of Spare parts 123 155 80 86
Recruitment 277 333 26 58
Total 13219 27054 1363 1519
Sales 20145 2215
Cost of X Asset of X

Firm Infrastructure 819 6.195822 Firm Infrastructure


HRM 277 2.092392 HRM
Technology Developemnt 333 2.51918
Technology Developemnt
Procurement 361.5 2.734786 Procurement
Inbound Logistics 283.5 2.144708 Inbound Logistics
Operations 10526 79.63031 Operations
Outbound Logistics 207 1.565977 Outbound Logistics
Marketing and Sales 273 2.065274 Marketing and Sales
Service 139 1.05155 Service
13219

Cost of Y Cost of Y

Firm Infrastructure 167 12.25486 Firm Infrastructure


HRM 26 1.887718 HRM
Technology Developemnt 120 8.805889
Technology Developemnt
Procurement 88.5 6.494343 Procurement
Inbound Logistics 69.5 5.100077 Inbound Logistics
Operations 477 35.00341 Operations
Outbound Logistics 161 11.81457 Outbound Logistics
Marketing and Sales 238 17.46501 Marketing and Sales
Service 16 1.174119 Service
1363
Asset of X

Firm Infrastructure 1189 4.394894


HRM 333 1.23132
echnology Developemnt 315 1.164333
Procurement 968.5 3.579861
Inbound Logistics 467.5 1.728018
Operations 17383 64.25268
Outbound Logistics 5507 20.35549
Marketing and Sales 225 0.831666
Service 666 2.461732
27054

Cost of Y

Firm Infrastructure 232 15.27235


HRM 58 3.823696
echnology Developemnt 68 4.476378
Procurement 90.5 5.957533
Inbound Logistics 45.5 2.995224
Operations 519 34.1653
Outbound Logistics 217 14.28491
Marketing and Sales 265 17.44471
Service 24 1.579898
1519

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