80.2K

Verified Solution

Link Copied!

This is questions to a project for my cost accounting class.

my business sams club.

Part 1 - What is customer value? Identifying value through the company's strategy Value represents what the customer wants and is willing to expend for a product of service. Since value is what is important to a customer, first understanding the entity's strategy can be key to setting the proper tone for what the customer wants (value-added) and does not want (non-value added or waste). Two main competitive strategies defined by Michael Porter are cost leadership and differentiation. Cost leaders exploit all sources of cost advantages to increase market share. On the other hand, differentiators seek a unique product or service that will be sought out by its consumers. The following table displays characteristics of the two main types of strategies (Tanwar 2013): Table 1 - Characteristics of Two Types of Competitive Strategies Differentiator Cost Leader Product/process innovation and/or uniqueness that builds brand loyalty Product/process innovation that unlocks cost savings in every aspect of business Continued investments in capital to enhance Sustained access to inexpensive capital or in reputation of products/services order to develop economies of scale Product/process specialties in design, Product/process design for efficiency, technology, manufacturing, branding and/or simplicity and low costs customer service Marketing reputation and quality at a premium- Marketing best value for relatively low price price Task - 25 points Based on your personal experience, reference to the mission statement and/or other promotional materials, identify the strategy of the company or department of your choice. Is it a cost leader or a differentiator and why? Use the above table on characteristics of each strategy and the following rubric to help formulate your answers and write your paper. 5 Part 2 - What are the value-streams and pull and flow processes of your case firm? Creating a value chain "Value stream mapping is a technique that assists the visualization of the entire process. documenting time, waste and cost," (Institute of Management Accountants, 2006b, p. 7). A value chain is a strategic analysis tool used to better understand a firm's competitive advantage, to determine where value to customers can be increased or costs reduced, and to identify synergies in external relations with outside partners such as suppliers and customers. By conducting a value chain, you are forming a template for many smaller value stream maps as well as examining the pull and flow activities that propel the product or service forward. The main areas of the value chain are: Research and development - Exploring ideas related to new products, services, or processes. In some cases, market research can fall in this category. Design - Planning, engineering and testing of products and processes. Supply - Purchasing and storing of raw materials and other supplies. Manufacturing/Service - Coordinating and transforming raw materials and labor into a finished product or final service Marketing - Promoting and pricing the products and services. Distribution - Shipping products and delivering services to customers. Customer Service - Providing after-sales support to customers. Task -25 points Consider your case firm and the strategy it employs (i.e., cost leadership or differentiation). Next, choose at least five of the seven primary value chain processes. Make sure to distinguish what the process is (i.e., design, marketing, etc.). For example, if you are discussing advertising tactics, include in the sentence or subheading that this falls under Marketing. Then, identify two specific activities or examples for each main process (i.e., list ten key activities in total for the organization). For the second assignment, report what the department or company currently performs and not on how you think they could improve those activities. However, as you complete this analysis, take notes for yourself of any ideas that you have with respect to time, waste and cost as these recommendations will feed into the requirements for Part 4. The following rubric can assist you in organizing your answers and writing your paper. Part 1 - What is customer value? Identifying value through the company's strategy Value represents what the customer wants and is willing to expend for a product of service. Since value is what is important to a customer, first understanding the entity's strategy can be key to setting the proper tone for what the customer wants (value-added) and does not want (non-value added or waste). Two main competitive strategies defined by Michael Porter are cost leadership and differentiation. Cost leaders exploit all sources of cost advantages to increase market share. On the other hand, differentiators seek a unique product or service that will be sought out by its consumers. The following table displays characteristics of the two main types of strategies (Tanwar 2013): Table 1 - Characteristics of Two Types of Competitive Strategies Differentiator Cost Leader Product/process innovation and/or uniqueness that builds brand loyalty Product/process innovation that unlocks cost savings in every aspect of business Continued investments in capital to enhance Sustained access to inexpensive capital or in reputation of products/services order to develop economies of scale Product/process specialties in design, Product/process design for efficiency, technology, manufacturing, branding and/or simplicity and low costs customer service Marketing reputation and quality at a premium- Marketing best value for relatively low price price Task - 25 points Based on your personal experience, reference to the mission statement and/or other promotional materials, identify the strategy of the company or department of your choice. Is it a cost leader or a differentiator and why? Use the above table on characteristics of each strategy and the following rubric to help formulate your answers and write your paper. 5 Part 2 - What are the value-streams and pull and flow processes of your case firm? Creating a value chain "Value stream mapping is a technique that assists the visualization of the entire process. documenting time, waste and cost," (Institute of Management Accountants, 2006b, p. 7). A value chain is a strategic analysis tool used to better understand a firm's competitive advantage, to determine where value to customers can be increased or costs reduced, and to identify synergies in external relations with outside partners such as suppliers and customers. By conducting a value chain, you are forming a template for many smaller value stream maps as well as examining the pull and flow activities that propel the product or service forward. The main areas of the value chain are: Research and development - Exploring ideas related to new products, services, or processes. In some cases, market research can fall in this category. Design - Planning, engineering and testing of products and processes. Supply - Purchasing and storing of raw materials and other supplies. Manufacturing/Service - Coordinating and transforming raw materials and labor into a finished product or final service Marketing - Promoting and pricing the products and services. Distribution - Shipping products and delivering services to customers. Customer Service - Providing after-sales support to customers. Task -25 points Consider your case firm and the strategy it employs (i.e., cost leadership or differentiation). Next, choose at least five of the seven primary value chain processes. Make sure to distinguish what the process is (i.e., design, marketing, etc.). For example, if you are discussing advertising tactics, include in the sentence or subheading that this falls under Marketing. Then, identify two specific activities or examples for each main process (i.e., list ten key activities in total for the organization). For the second assignment, report what the department or company currently performs and not on how you think they could improve those activities. However, as you complete this analysis, take notes for yourself of any ideas that you have with respect to time, waste and cost as these recommendations will feed into the requirements for Part 4. The following rubric can assist you in organizing your answers and writing your paper

Answer & Explanation Solved by verified expert

See Answer