a. A company should certainly focus on enabling several resource strengths into a core competence. This is highly imperative because an organizations core competence plays a vital role in its success in the market by being a leading player, with highly loyal customers, less threat of rivals and less threat of substitutes. In order to achieve such supreme position in the market, an organization need to ensure it uses all of its resource strengths, both in terms of tangible and intangible resources (human resources which is a knowledge/intellectual asset, high-quality product/service that it offers to its customers etc.,)
b. Value Chain is fundamentally composed of the primary activities done in the organization in relation to that of the support activities. Primary activities include Inbound Logistics, Operations, Outbound logistics, marketing and Sales, Service. This is the core of the value chain which can also be referred as SIPOC – Supplier, Input, Process, Output, and Customer. These primary activities when working in relation to support activities viz., organizational infrastructure, Human Resource Department, Technology Support, Finance, Facilities, Administration & Management etc., completes the value chain. The organization creates the value out of these two activities which are called the profit margin. In other words, the difference between the value creation/capture and the cost incurred in creating that value is called the profit margin. By making use of these chains of activities in creating the value in relation to both primary and secondary departments, the organizations can certainly reduce the cost and increase the profit margin. In this way, the proficiency with which an organization performs the activities comprising its value chain matters.