Managing Cost and Strategy Managing Cost and Strategy
Chi-Wen Jevons Lee
Tulane and Tsinghua
Lecture OneLecture One
Value Chain: Strategy Design
李志文
Three Keys to SuccessThree Keys to Success
Vision: Goal, Innovation, Opportunities
Strategy: How to make it happen
(allocating physical resources)
Team: Who make it happen (building
organizational human capital)
Fundamental Formula of Business SuccessFundamental Formula of Business Success
Economic Value = (price – unit cost) x quantityEconomic Value = (price – unit cost) x quantity
Price and Quantity: Customer Satisfaction,
Customer Loyalty
Cost: Source of Competitive Advantage
Economy of Scale
Economy of Scope
Division of Labor and Specialization
Structure of Team Structure of Team
Free Form: Double Tennis, Jazz Combo
Centralized: Soccer/Orchestra
Decentralized: Baseball
Basic Components of Team:
Functional Role, Decision Type, Leadership Style
SWOT Analysis of Competitive SWOT Analysis of Competitive
AdvantageAdvantage
Strength
Weakness
Opportunity
Threat
Finding SWOT: Benchmark Analysis
BenchmarkingBenchmarking
Value Chain and Landscaping AnalysisValue Chain and Landscaping Analysis
Physical
resources
Human
resources
Support services
•Accounting
•Human resources
•Legal services
•Information systems
•Telecommunications
Resea
rch
And
Devel
op-
ment
Desig
n
Supply Production Marketing Distri- bution
Customer
service
Economic
Value
I have been thinking about Value Chain for years!
Case: Sara LeeCase: Sara Lee
Virtual Organization
Outsourcing
Team Structure
Brand Management
Research and Development
Need of Cost Management
Examples of Term Papers
江帆：中国航天电子
王安嘉：联合报集团
曹伟宏，周苏贵：海尔集团
谢淑仪：利丰
Li and FongLi and Fong
Dynamic Value Chain
Product Cycle
Globalization
附加价值高的在
香港进行
附加价值低的在香
港以外的地方进行
在中国进行缝合
衣服的里布来自台湾
布料在南亚染色
外面的布料采购自韩国
拉链由日本进口
产品的设计
标签
包装
运输的管理
财务
Global Sources
小规模
大规模
大规模
贸易公司
零售商
WalMart
Gap
Li & Fung
Avon
B2B online companies Trading companies Retailers
Li & Fong Competitive Positioning
产品的发
展
原材料的采购 生产计划
制造商的寻求
制造的管
制
品质得到的保
证
出口文件的准
备
运送的合并
和巩固
Li & Fung Total Value-
Added Package
流行的饰物， 节庆的产品，
家具和室内陈设品，衣服，
手工艺品， 运动器材， 玩具，
旅游器具
Total Value-Added Package, Li and Fong
Term PaperTerm Paper
15 out of 50 Selected for Revision
10 out of 15 get A, will write MBA Thesis under
my supervision
Papers of finalists will be considered for
publication
