Picking up the value points

What is the business value system?

A model for resource management

A way of doing business

A set of value creating activities that are interdependent

A business model

A business value system -

Is potentially very dynamic

Inevitably gets less value added in maturity

Is relatively static

Is dependent on customer needs

In Virgin Gallactic -

This model essentially only required bums on seats

Never really stood much chance of success

Was only viable for a very finite time

Offered the potential for a whole variety of potential business models

With Porter's five forces -

Even just one force that is very unfavourable can cause margin problems

It does not matter if one or two forces are not that favourable

If there are three adverse ones then it is almost certain that you will go bust

Is the only competitive driver of the OPM

In the UK supermarket industry in the 1990s

OPM was adversely affected by two new margins with major effects

Margins were consistently high

OPM was adversely affected by two new entrants with minor effects

Margins were never high at all

What systems impact on the EVA in the football industry - and significantly?

The financing system and investor mind sets?

The Business Value System?

All four

Porter`s five forces?

Why do almost all of the Premier League clubs lose money?

Because their premises are not used for nearly all of the week and not at all in summer

Because they are not very innovative off the pitch

Because most managers of the clubs change once a year on average

Because of the supplier force

Which clubs have been both successful on the pitch and won trophies recently, and don't make money?

Manchester United

Chelsea and Manchester City

Arsenal

Chelsea

The Business Value system -

Is relatively static and unchanging

Evolves only in an emergent way

Evolves only in a deliberate way-otherwise it stagnates

Evolves in either an emergent or deliberate way

In terms of how the model works itself -

Trying to manage their alignment is a hopeless task

The activities are usually not aligned well even in companies where performance is satisfactory

The activities are not always aligned and this happens usually through a Vision

The activities can be essentially largely managed in a self - contained way

Picking up the value points

What is the business value system?

A business value system -

In Virgin Gallactic -

With Porter's five forces -

In the UK supermarket industry in the 1990s

What systems impact on the EVA in the football industry - and significantly?

Why do almost all of the Premier League clubs lose money?

Which clubs have been both successful on the pitch and won trophies recently, and don't make money?

The Business Value system -

In terms of how the model works itself -

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