Question

Business Unit: Innocent Drinks / Company: Coca Cola

1) Identify and explain the value chain relationships between your chosen business unit with other business units within your chosen company.
2) Explain how diversification strategies can produce a cross-business strategic fit capable of delivering competitive advantage for your business unit

Answer 1

Value Chain -

A value chain includes all the activities starting from obtaining the raw materials from various sources to the final sales and after sales service. There are several activities in the middle which form the value chain. Optimization will not just bring efficiency but it can also generate new sources of competitive advantage. Here is a detailed value chain analysis of Coca Cola.

Ingredient Sourcing => Coca Cola Company => Bottling operations and Logistics => Customers => Consumers Recycling

Upstream => Operations and Logistics => Downstream

1. Logitics Unit - This business unit has directy relationship with Finance Unit and Supply chain unit

To Move the consignment from manufacturing unit to warehouse unit covered unit primary and secondary units; strong and healthy establishment of finance and supply chain is required since transporter needs to paid for consignment transported and the the same needs to be kept in the warehouses taken on rent, most of the times ; which are to paid as well.

2. Diversification strategies can produce a cross-business strategic fit capable of delivering competitive advantage for your business unit. It can help in -

- transferring specialized expertise, technological know-how, or other competitively valuable strategic assets from one business's value chain to another's
- sharing costs between businesses by combining their related value chain activities into a single operation
- exploiting the common use of a well-known brand name
- sharing other resources (besides brands) that support corresponding value chain activities across businesses
- engaging in cross-business collaboration and knowledge sharing to create new competitively valuable resources and capabilities