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Value Chain Analysis
Value Chain Analysis
• Value chain analysis in strategic management is used to evaluate a company’s value chain elements
• A process where a firm identifies its activities that add value to its final product
• It is a tool for identifying ways to create more customer value and analyze internal firm activities
• Value chains help increase a business's efficiency so the business can deliver the most value for the least
possible cost.
Strategic Audit
• A strategic audit is an examination and evaluation of areas affected by the operation of a strategic
• It provides an platform for discussion with the top management regarding necessary corporate action or
• Consonance: emphasizes the importance of examining sets of trends. A strategy symbolizes an adjustment to an external
stimulus or changes in the environment.
• Feasibility: can strategy be attempted within the physical, human and financial resources?
• Advantage: strategy must provide the competitive advantage. Competitive advantage normally are the result of superiority in
one of three areas- resource, skills or position.