Week II
Individual Work
Business Policy and Strategy - 1
Professor O’Bryant
DJ Funderburk
July 26, 2012

This paper will cover the meanings of value, create value and value chain analysis. This paper will discuss what the firm gains when it successfully uses these tool.

What is value? Why is it critical for a firm to create value? How does it do so?
“Value is measured by a product’s performance characteristics and by its attributes for which customers are willing to pay”(Hitt, Ireland, & Hoskisson, 2012, p. 75).   The importance of create value is the capabilities and the core competencies of a company just because it gives an advantage to lower the price of the merchandise or products that the company is selling out in the market place.   It is also important that the company keep up with the external environmental changes that come up.   Having a company that hires skilled associates till have a better chance of making the customers happy, by giving the employees additional training, respect and trust will make the employees happy and welling to work harder for the rewards that they will receive from the company.   In the end the company will be more competitive and have a higher return on their money for the investors.
What is value chain analysis? What does the firm gain when it successfully uses this tool?
When looking at the value chain analysis companies have to keep track of the operations of the company to understand what really goes on in each and every department.   If this does not happen then there is a large possibility the company will lose the above-average returns that they were hoping for in the beginning when they set up the missions.   Every company or firm thinks about the competition or should; otherwise they could be beat out on productions and services by other competitors.   It is also important that the company performs or makes the orders correctly so the products will sell.   With this being said...