- May iba’ ibang activities po ang
- It encompasses the climate, culture,
machines/equipment, work and work
processes, members, management and
management practices.
- In other words, the internal
environment refers to the culture,
members, events and factors within an
organization that has the ability to
influence the decisions of the
organization, especially the behaviour of
its human resource. Here, members
refer to all those people which are
directly or indirectly related to the
organization such as owner,
shareholders, managing director, board
of directors, employees, and so forth.
-It is an important tool to understand the
internal activities of an organization. It
gives information about how its
strategies are working, its resource
base, relative strengths & weaknesses,
and helps to formulate effective
strategies.
business na tigcoconvert ninda into a
usable products na nagki-create ki
customer value.
- And ang purpose kaining value chain
analysis is to examine how an
organization creates customer value
through its different activities.
- A value chain is used to describe all the
business activities it takes to create a
product from start to finish
- Value chain analysis is used para
ievaluate so mga activities na iggigibo
kang business puon sa pagcreate ki
products hanggang sa matapos.
Based on Porter’s value chain, all activities
that make up a firm's value chain can be
split into two categories that contribute to
its margin: primary activities and support
activities.
● Primary Activities,
It consist of
⮚ Inbound Logistics –
this is where inputs such as raw
materials are taking care of.
( it is where raw materials are
physically received and restored)
It includes activities such as
receiving, warehousing, and
inventory management of source
materials and components.
⮚ Operations –
Digdi na igcoconvert so inputs
provided by inbound logistics into
final product.
Activities that are associated with
operations are machining,
production, packaging, testing and
quality control.
 gabos kang activities kang value
After finishing the final product, next chain.
na po ang
⮚ Technological Development –
⮚ Outbound Logistics – It includes These are activities related to
activities relating to the distribution of improving a firm’s products and
products to consumers. manufacturing products.

Activities associated to outbound It includes: research and

logistics are distribution, including
packaging, sorting, and shipping
⮚ Marketing and Sales – These are
the marketing efforts to persuade
customers to purchase the products.
including: promotion, advertising,
and pricing strategy.
⮚ Services – these are the activities
designed to enhance or maintain a
product’s value.
including installation, training,
quality assurance, repair, and
customer service
(which reinforce a long-term
relationship with the customers who
have purchased a product or
service.)
These are activities that is directly
involved to physical creation and
selling of final product
● Secondary Activities,
development, including product
design, market research, and
process development
⮚ HRM – or Human Resource
Management. It includes activities
such as recruitment, hiring,
training, development, retention,
and compensation of employees
(It is the HRs responsibility that the
right skill are available at the right
time for the various value chain
activities)
⮚ Infrastructure – These are
activities related to the company’s
overhead and management,
including financing and planning.
It Includes: general management,
planning, finance, accounting, legal
support, and government and quality
management.
(Firm infrastructure is how the firm is
organized and led by executives.It
usually support the entire value
chain and not just individual
activities.)

Ini naman support activities kasi it

supports various primary activities
become more efficient and
effectively create a competitive
advantage

we have:
⮚ Procurement –
it includes: sourcing of raw
materials, components,
equipment, and services.

It is responsible for negotiating

prices and purchasing items such as
raw materials, machinery, equipment
and other things na kaipuhan sa
IMPORTANCE:
In value chain analysis, these activities are
important because it lets the firms understand
the parts of their operations that create value,
and those that do not.
Understanding these issues is important
because the firm can earn a return only if it
creates greater value than the costs incurred to
create the value.
Companies gain competitive advantage by performing
these relevant activities more cheaply or better than its
competitors
This resource-based view contends that in
order to develop strategies that can result in a
lasting competitive advantage, a firm’s
resources should come first. It entails creating
and utilizing a company’s distinctive resources
and competencies, as well as continuously
preserving and enhancing such resources.
Based sa method na ini and resources ang key
sa superior performance kang sarong firm
IMPORTANCE:
firm-specific resources, that is, those resources
that maintain value in the context of the given
firm's markets and other resources that are
difficult to replicate by other firms.
c ofontends that the possession of strategic
resources provides an organization with a
golden opportunity to develop competitive
advantages over its rivals
EXAMPLE:
The competition between Apple Inc. and
Samsung Electronics is a good example of
RBV of strategy.
The two companies operate in the same
industry and face the same external market
forces. However, the companies achieve
different organizational performance due to the
difference in resources.
This resource-based view contends that in
order to develop strategies that can result in a
lasting competitive advantage, a firm’s
resources should come first. It entails creating
and utilizing a company’s distinctive resources
and competencies, as well as continuously
preserving and enhancing such resources.
- Internal benchmarking involves
looking inwards which simply means
that company attempts to learn from
their own structure.
Ini so mga efforts na iggibo kang
organizations para ma-measure so mga
products, practices, and strategies sa laog
kang organization ninda.
They compare similar operations within the
organisation which could be defined and
measured.
For example, warehousing and shipping of
products from one site of a company, can be
compared to warehousing and shipping of a
product from a different warehouse of the
company.
IMPORTANCE:
BENCHMARKING leads to continuous
improvement which in turn leads to increased
efficiency.

The following are the reasons fordoing

benchmarking:

● It identifies opportunitiesto
improveorganizationalperformance.
● Learn from others’experiences.
● Set realistic as well asambitious
targets.
● Assess strengths inone’s own
organization.
● Effective resourceacquisition
andallocations.

Strategic advantage profile of SAP is the last of

our internal analysis methods.

SAP summarizes the internal factors of an

organization using a form. It is prepared after
the analysis of the internal environment and
identification of the factors crucial to a
particular firm.

SAP organizes the internal factors into

strengths and weaknesses. It also analyzes
how well a company is responding to these
factors.

Every firm has strategic advantages and

disadvantages. For example, large firms have
financial strength but they tend to move slowly,
compared to smaller firms, and often cannot
react to changes quickly. No firm is equally
strong in all its functions.

The VRIO (Value, Rareness, Imitability, &

Organization) is used to assess the importance
of each factor that might be considered a
strength.

It helps businesses identify the advantages

and resources that give them a competitive
edge.
1.Value Chain Analysis
https://www.techtarget.com/searchcio/definition
/value-chain

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4.Resource based view