BUAD441 Lecture Notes - Lecture 4: Human Resource Management, Profit Margin, Frugality

• School: University of Delaware
• Department: Business Administration
• Course: BUAD441
• Professor: Sharon Watson

Document Summary

Sustainable competitive advantage: above average performance over the long term, with a value creating strategy that other firms cannot duplicate, based on a company"s unique resources and capabilities. Competitive advantage through value creation: firms create value for customers through value-adding activities, value created (price) Value chain analysis: support activities, support primary activities, procurement purchasing of stuff for each of the primary activities, r&d/technology development, human resources management. Hiring, managing all new employees for each primary activity: general management/firm infrastructure, primary activities for the customer, supply chain mgmt. (inbound logistics) Need stuff to perform service: operations. Creating something for ur customer: distribution (outbound logistics) Get it to your customer: marketing & sale. Let customers know ur product is out there. Warranties, guarantees, customer service: profit margin, increase size of profit margin lower costs from any primary activity, perform all the value adding activities the same ur competitors are doing it, but do it better.