Value Chain of Waner

Porter’s value chain identifies strategically relevant activities that create value and cost ina specific business. In terms of the Value Chain, Warner EMI Music should not have much tochange. This is true as both companies (Time Warner and EMI) shared prior to the merger similar behaviour. In terms of primary activities, the operational system of Warner EMI Music should beaimed to compete on costs. The company must reduce manufacturing costs as a result of econo-mies of scale. Dealing with advertising, Warner EMI Music should maintain active in using theInternet as its main promotional tool. With regard to support activities and specifically firm infra-structure, the company should cut down corporate overhead and seek to simplify information sys-tem to reduce costs of the accounting department. Further, personnel should be carefully selected by the human resource management and trained to keep up with technological changes and ad-vances in the market place. It is also highly recommended that the Warner EMI Group shouldmanage the linkages of different departments and activities in the value chain. This is important asit can reassure consistency, effectiveness and pragmatic organisational execution. It is possible to present the above in a graphical form. This is illustrated in Figure 1 that follows

Suitability, Acceptability and Feasibility
After discussing the strategic direction and methods available to the company it is nowtime to assess and evaluate whether the proposed strategic approach is suitable, feasible and ac-ceptable for Warner EMI Music. Figure 10 shows how these various aspects of evaluation can befitted together to assess the selection of the strategic direction.

Acceptability
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Return
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Risk
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Stakeholder reactions
Assessment of suitability
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Establishing the rational
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Screening option
Selection strategies
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Planned
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Enforced
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Learning
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Command
FeasibilityStrategic analysis
Identifies