Benefits Of Successful Implementation Can Increase A Competitive Advantage

1602 Words Aug 17th, 2014 7 Pages
Key Processes
Business processes are defined as actions or activities that a firm engages in to realize a business purpose or objective (Ray, Barney & Muhanna 2004, p. 24) and the benefits of their successful implementation can increase a business’s competitive advantage. Competitive advantage as explained by Michael Porter, (cited in Singh 2012, p. 19) is when a business is able to increase earnings despite its competitive pressures. For any business, including Samsung, these processes can be divided into primary or major and secondary or support processes (Singh 2012, p. 19). The primary process includes the acquiring of raw materials, the process of producing products or services and the process of delivering products or services to customers (Ray, Barney & Muhanna 2004, p. 24). Examples of secondary processes are the firm’s structure, human resources management, technology development and procurement (Baltzan et al. 2010, p. 32). Consequently, for a business to gain competitive advantage, these processes need to add value by using the business’s resources effectively (Singh 2012, p. 19).
An example of Samsung’s primary business processes is with its management of their supply chain. The Samsung Group of companies has large, complex global supply chains for most of its products, therefore they need a state of the art supply chain management system to support and improve its operations. Supply chain management (SCM) in today’s business is seen as a strategic way to…

Related Documents