Industry Analysis Part 3: Value Chain
See pp. 54-66 in IT Strategy for relevant reading material. I’d like a five-paragraph response–probably in the 2-3 page range here–that uses the value chain lens to analyze the firm’s value creating activities (and how they can be improved with IT). See below for what I’d specifically like to see in paragraphs. You are free to add additional contextual information, but the information from the paragraphs below should be present in your response.
Paragraph 1 (22 points): Describe the major activities of the firm’s value chain (see p. 54)
Paragraph 2 (22 points): How could the firm lower costs on any stage in its value chain? (see pp. 57-58)
Paragraph 3 (22 points): How could the firm increase value-added in any stage in its value chain? (see pp. 58-60)
Paragraph 4 (22 points): How could the firm reconfigure the linkages between the steps of its value chain? (see pp. 60-66)
Paragraph 5 (12 points): Conclude with a brief assessment of the firm’s ability to deliver more value than its archrivals using IT.
Paragraph 1
Describe the major activities of the firm’s value chain (see p. 54) 22.0 pts
Full Marks
You will receive this score if you describe [a sampling of] both the firm’s primary activities (inbound logistics, operations, outbound logistics, marketing, and service) and also its secondary activities (procurement, human resources, infrastructure, etc.).
20.0 pts
Missing Some Elements
You will receive this score if you only reference the firm’s primary activities and do not reference any of its secondary activities. 17.0 pts
Below Expectations
You will receive this score if you do not use the Value Chain model to describe the firm (see p. 54 for more information about this model).
Paragraph 2
How could the firm lower costs on any stage in its value chain? 22.0 pts
Full Marks
You will receive full marks if you describe how the firm can lower costs (e.g., unsold inventory sitting somewhere, lengthy supply chains, pricing problems, etc.)
20.0 pts
Missing Some Elements
You will receive this score if your analysis does not specifically address how the firm could lower costs (see p. 57 for a list of suggestions). 17.0 pts
Below Expectations
You will receive this score if you do not address the issue of cost within a single piece of the value chain.
Paragraph 3
How could the firm increase value-added in any stage in its value chain? 22.0 pts
Full Marks
You will receive this score if you a) identify the primary activity to which the value is being added and b) identify how that value is being added (see p. 58-59 for examples).
20.0 pts
Missing Some Elements
You will receive this score if you discuss value added along value chains without referencing the primary or secondary activities that are gaining value. 17.0 pts
Below Expectations
You will receive this score if you do not address the issue of value within a single piece of the value chain.
Paragraph 4
How could the firm reconfigure the linkages between the steps of its value chain? 22.0 pts
Full Marks
You will receive full marks if you discuss how the firm could use IT to both a) disintermediate firms in the value stream and also b) coordinate steps within and between firms in the value chain.
20.0 pts
Missing Some Elements
You will receive this score if you either discuss how the firm could use IT to both a) disintermediate firms in the value stream or b) coordinate steps within and between firms in the value chain.
17.0 pts
Below Expectations
You will receive this score if you do not address the linkages between steps in a value chain in your written response.
Paragraph 5
Conclude with a brief assessment of the firm’s ability to deliver more value than its archrivals using IT. 12.0 pts
Full Marks
You will receive full marks if your conclusion integrates parts of both the steps analysis and also the linkages analysis. 10.0 pts
Missing Some Elements
You will receive this score if your conclusion either brings up the steps analysis or the linkages analysis (but does not integrate them together). 7.0 pts
Below Expectations
You will receive this score if your conclusion does not address any of the arguments you previously made regarding either the steps or the linkages in the value chain.