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Article

Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic

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Faculty of Corporate Strategy, Department of Management, Institute of Technology and Business in České Budějovice, Okružní 517/10, 370 01 České Budějovice, Czech Republic
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Faculty of Economics & Business, Department of Management, Universitas Muhammadiyah Gresik, Jl. Sumatra 101 Gresik, Jawa Timur 61121, Indonesia
*
Authors to whom correspondence should be addressed.
Sustainability 2020, 12(4), 1520; https://doi.org/10.3390/su12041520
Received: 4 January 2020 / Revised: 3 February 2020 / Accepted: 12 February 2020 / Published: 18 February 2020
(This article belongs to the Special Issue Social and New Technology Challenges of Sustainable Business)
This paper presents a method of generating a business strategy using value chain analysis. There were 186 manufacturing and industrial enterprises from the Czech Republic. The analysis was carried out using mathematical–statistical methods (dimensional reduction, logit regression and its transformation in order to objectify the opinion level of the managers) and with a neural network in terms of validation of the results of the mathematical–statistical methods. The aim was to determine the significance of different parts of the value chain in terms of their impact on the profitability of an enterprise and to demonstrate its important role in the process of generating business strategy. The significance for the profitability of the enterprises was statistically proven in the area of scientific and technological development, input logistics and human resource management. These parts were identified by the authors as the golden triangle of manufacturing and industry. Purchasing and output logistics were identified as the parts with a negative impact to the profitability of the enterprises. Strong underestimation of scientific and technological development by the top managers of the manufacturing and industrial enterprises is seen as a very negative finding. Neural networks showed higher statistical sensitivity compared to the mathematical–statistical methods (dimensional reduction and logit regression). They defined the value sector chain with the following structure (ranked from the highest degree of positive impact on the profitability of the enterprise): human resource management, scientific and technological development, production, input logistics, purchasing, material management, output logistics, enterprise infrastructure, marketing and sales, service and other supporting services. In conclusion, it is stated that the sector value chain of manufacturing and industrial enterprises will be further decomposed into value chain models of specific industries of the production and industry, such as engineering and construction, intended for direct use in different business entities to generate their unique value chains and corporate strategies. View Full-Text
Keywords: value chain; business strategy; profitability; competitiveness; sustainability; competitive advantage value chain; business strategy; profitability; competitiveness; sustainability; competitive advantage
MDPI and ACS Style

Straková, J.; Rajiani, I.; Pártlová, P.; Váchal, J.; Dobrovič, J. Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic. Sustainability 2020, 12, 1520. https://doi.org/10.3390/su12041520

AMA Style

Straková J, Rajiani I, Pártlová P, Váchal J, Dobrovič J. Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic. Sustainability. 2020; 12(4):1520. https://doi.org/10.3390/su12041520

Chicago/Turabian Style

Straková, Jarmila, Ismi Rajiani, Petra Pártlová, Jan Váchal, and Ján Dobrovič. 2020. "Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic" Sustainability 12, no. 4: 1520. https://doi.org/10.3390/su12041520

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