Creating value

In this lesson

1. 0:00 Five stages of value creation
2. 0:53 Partners and stakeholder incentives
3. 2:11 Resources and supply chain management
4. 4:18 Threshold versus unique resources
5. 5:44 Processes and organisational procedures
6. 6:21 Activities and competencies explained
7. 7:25 Core versus threshold competencies
8. 9:06 Outputs and value proposition delivery
9. 9:54 Practice: ordering value creation stages
10. 11:16 Knowledge check and real-world application

About this lesson

This lesson breaks down each component, showing you how to identify essential stakeholders, classify resources and competencies, and understand how organisations transform inputs into value. You'll also explore the critical distinction between threshold and unique resources—a concept that appears across CIMA and ACCA case study exams and is essential for strategic analysis. In this 12-minute session, we work through each stage systematically. Partners are the crucial stakeholder groups—suppliers, employees, freelancers—that you need to incentivise effectively. Resources go beyond raw materials to include digital technologies and data; they're classified as either threshold resources (meeting minimum customer requirements) or unique resources (creating competitive advantage). Processes are the abstract rules and procedures that guide how work gets done, while activities are the concrete actions that bring those processes to life. Together, processes and activities form your competencies—again split between threshold competencies and core competencies, which drive competitive differentiation. Finally, outputs are the products, services, or experiences that realise your value proposition. A common mistake students make is confusing terminology across classifications: remember that unique resources confer competitive advantage (not core resources), whereas core competencies do the same for activities and processes. The lesson includes a worked example and a true-or-false check to reinforce the framework. By the end, you'll be able to map real-world organisations against this model and apply it confidently in case study scenarios where strategic business analysis is required.

Duration: 13m