Contents
This report is based on the following requirement - - Watch “inside Fendi” http://www.bloomberg.com/news/videos/b/392069f1-8d3c-470d-9a6d-4111a4930dbb
- Then “Construct the corporate value chain of Fendi , identifying the competency, as well as the key activities behind the competency, that has been developed to create value for the firm. You must demonstrate how the value created in the corporate value chain becomes valuable in the market place.” (See Fig. 1).This essay is to be based on information gleaned from the video as well as the sub-group’s research. It is to be fully referenced and grounded in theory. Check the marking guide so you know what to include.
- STRUCTURE TO WRITE YOUR ESSAY
- Your essay must be follow accordingly..
- Section 1
- Values Identification
- Value is what customers pay for, not simply what the company can offer
- 1. Define the customer type, for example: What is the value of MacDonald's to Children, probably the toy that comes with Happy meal; for teenagers, the value of MacDonald's could be a venue to chat with friends; to ladies, it could be the clean toilet.
- Section 2
- External Environment Analysis
- (A) General Environment Analysis
- Apply PEST (PESTLE) Analysis
- This general environment covers the markets where the company is operating in. Thus, you should first determine where are the main markets of the company you are analyzing.
- You must have all the 4 factors (PEST) being analyzed.
- What is the political situation of the country and how can it affect the industry?
- What are the prevalent economic factors?
- How much importance does culture has in the market and what are its determinants?
- What technological innovations are likely to pop up and affect the market structure?
- Are there any current legislations that regulate the industry or can there be any change in the legislations for the industry?
- What are the environmental concerns for the industry?
- Many students make mistake by analysis the company instead of the general environment.
- (B) Industry Analysis
- Apply 5-forces analysis.
- Define the industry first
- You must conclude if each force has high/moderate/low bargaining power. All 5 forces must be analyzed. You may also include 6th force if space allowed.
- Overall conclusion if the market is attractive or not.
- Section 3
- Core competencies
- Determine the core competencies of the company based on the available resources and capabilities of the company. Remember is must be Valuable, Rare, Costly to imitate and Non substitutable.
- e.g. Core competencies of Macdonald’s could be the company can serve its food really fast
- Section 4
- Internal Analysis
- You must show how the core competencies identified in section #3 are being supported by the internal activities of the company using the Value Chain Analysis.
- You do not need to mention all the value chain activities, but only those which are supporting the core competencies.
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