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VALUE CHAIN ANALYSIS
VALUE CHAIN ANALYSIS
• PROCESS WHERE A FIRM IDENTIFIES ITS PRIMARY AND TO ITS FINAL PRODUCT AND THEN ANALYZE THESE AC DIFFERENTIATION.
• VALUE CHAIN ID A TOOL DEVELOPED BY DR. MICHAE
WHAT IS THE VALUE CHAIN? • POTER’S DEFINITION INCLUDES ALL ACTIVITIES TO DESIGN, PRODUCE, MARKET, DELIVER , SUPPORT THE PRODUCT OR SERVICE . • CONCENTRATING ON THE ACTIVITIES STARTING WITH RAW MATERIALS TILL THE CONVERSATION INTO FINAL GOODS.
TYPES OF VALUE CHAIN BASED IN ORGANIZATION • MANUFACTURING BASED • SERVICE BASED
• BOTH MANUFACTURING AND SERVICE BASED.
TYPES OF FIRM ACTIVITIES PRIMARY ACTIVITIES -INVOLVED IN THE CREATION AND TRANSFER OF PRODUCTS (INCLUDING AFTER SALES SERVICE. *INBOUND LOGISTICS *OPERATIONS *OUTBOUND LOGISTICS *SALES AND MARKETING *SERVICE AND SUPPORT
• SUPPORT ACTIVITIES -THOSE THAT ARE MERELY SUPPORT THE PRIMARY ACTIVITIES.
*HUMAN RESOURCES *TECHNOLOGY DEVELOPMENT *PROCUREMENT
PRIMARY ACTIVITIES • INBOUND LOGISTICS -CONCERNED WITH RECEIVING, STORING, DISTRIBUTING, INPUTS (E.G. HANDLING RAW MATERIALS, WAREHOUSING, INVENTORY CONTROL) • OPERATIONS -COMPRISE THE TRANSFORMATION OF THE INPUTS INTO THE FINAL PRODUCT FORM (E.G. PRODUCTION, ASSEMBLY AND PACKAGING. • OUTBOUND LOGISTICS - INVOLVED THE COLLECTING, STORING,AND DISTRIBUTINGTHE PRODUCT TO THE BUYER. (E.G. PROCESSING OF ORDERS, WAREHOUSING OF FINISHED GOODS AND DELIVERY) • MARKETING AND SALES - IDENTIFYING OF COSTUMER NEEDS AND GENERATION OF SALES (E.G . ADVERTISING, PTOMOTION, DISTRIBUTION) • SERVICE -INVOLVES HOW TO MAINTAIN THR VALUE OF THE PRODUCT AFTER IT IS PURCHASED (E.G INSTALLATION, REPAIR , MAINTENANCE AND TRAINING
SUPPORT ACTIVITIES • FIRM INFRASTRUCTURE
- THE ACTIVITIES SUCH AS ORGANIZATION STRUCTURE, CONTROL SYSTEM, COMPANY CULTURE ARE CATEGORIZED UNDER FIRM INFRASTRUCTURE. • HUMAN RESOURCE MANAGEMENT - INVOLVED IN RECRUITING, HIRING, TRAINING, DEVELOPMENT AND COMPENSATION. • TECHNOLOGY DEVELOPMENT - THESE ACTIVITIES ARE INTENDED TO IMPROVE THE PRODUCT AND THE PROCESS, CAN OCCUR IN MANY PARTS OF THE FIRM.
• PROCUREMENT - CONCERNED WITH THE TASKS OF PURCHASING INPUTS SUCH AS RAW MATERIALS, EQUIPMENT AND EVEN LABOR.
USES OF VALUE CAHIN ANALYSIS • THE VALUE CHAIN IS A TOOL FOR SYSTEMATICALLY EXAMINING THE ACTIVITIES OF A FIRM AND HOW THEY INTERACT WITH ONE ANOTHER AND AFFECT EACH OTHERS COST AND PERFORMANCE. • HELPS YOU TO STAY OUT OF THE “ NO PROFIT ZONE” • PRESENTS OPPORTUNITIES FOR INTEGRATION. • ALIGNS SPENDING WITH VALUE PROCESS.
THANK YOU.
VALUE CHAIN ANALYSIS
• PROCESS WHERE A FIRM IDENTIFIES ITS PRIMARY AND TO ITS FINAL PRODUCT AND THEN ANALYZE THESE AC DIFFERENTIATION.
• VALUE CHAIN ID A TOOL DEVELOPED BY DR. MICHAE
WHAT IS THE VALUE CHAIN? • POTER’S DEFINITION INCLUDES ALL ACTIVITIES TO DESIGN, PRODUCE, MARKET, DELIVER , SUPPORT THE PRODUCT OR SERVICE . • CONCENTRATING ON THE ACTIVITIES STARTING WITH RAW MATERIALS TILL THE CONVERSATION INTO FINAL GOODS.
TYPES OF VALUE CHAIN BASED IN ORGANIZATION • MANUFACTURING BASED • SERVICE BASED
• BOTH MANUFACTURING AND SERVICE BASED.
TYPES OF FIRM ACTIVITIES PRIMARY ACTIVITIES -INVOLVED IN THE CREATION AND TRANSFER OF PRODUCTS (INCLUDING AFTER SALES SERVICE. *INBOUND LOGISTICS *OPERATIONS *OUTBOUND LOGISTICS *SALES AND MARKETING *SERVICE AND SUPPORT
• SUPPORT ACTIVITIES -THOSE THAT ARE MERELY SUPPORT THE PRIMARY ACTIVITIES.
*HUMAN RESOURCES *TECHNOLOGY DEVELOPMENT *PROCUREMENT
PRIMARY ACTIVITIES • INBOUND LOGISTICS -CONCERNED WITH RECEIVING, STORING, DISTRIBUTING, INPUTS (E.G. HANDLING RAW MATERIALS, WAREHOUSING, INVENTORY CONTROL) • OPERATIONS -COMPRISE THE TRANSFORMATION OF THE INPUTS INTO THE FINAL PRODUCT FORM (E.G. PRODUCTION, ASSEMBLY AND PACKAGING. • OUTBOUND LOGISTICS - INVOLVED THE COLLECTING, STORING,AND DISTRIBUTINGTHE PRODUCT TO THE BUYER. (E.G. PROCESSING OF ORDERS, WAREHOUSING OF FINISHED GOODS AND DELIVERY) • MARKETING AND SALES - IDENTIFYING OF COSTUMER NEEDS AND GENERATION OF SALES (E.G . ADVERTISING, PTOMOTION, DISTRIBUTION) • SERVICE -INVOLVES HOW TO MAINTAIN THR VALUE OF THE PRODUCT AFTER IT IS PURCHASED (E.G INSTALLATION, REPAIR , MAINTENANCE AND TRAINING
SUPPORT ACTIVITIES • FIRM INFRASTRUCTURE
- THE ACTIVITIES SUCH AS ORGANIZATION STRUCTURE, CONTROL SYSTEM, COMPANY CULTURE ARE CATEGORIZED UNDER FIRM INFRASTRUCTURE. • HUMAN RESOURCE MANAGEMENT - INVOLVED IN RECRUITING, HIRING, TRAINING, DEVELOPMENT AND COMPENSATION. • TECHNOLOGY DEVELOPMENT - THESE ACTIVITIES ARE INTENDED TO IMPROVE THE PRODUCT AND THE PROCESS, CAN OCCUR IN MANY PARTS OF THE FIRM.
• PROCUREMENT - CONCERNED WITH THE TASKS OF PURCHASING INPUTS SUCH AS RAW MATERIALS, EQUIPMENT AND EVEN LABOR.
USES OF VALUE CAHIN ANALYSIS • THE VALUE CHAIN IS A TOOL FOR SYSTEMATICALLY EXAMINING THE ACTIVITIES OF A FIRM AND HOW THEY INTERACT WITH ONE ANOTHER AND AFFECT EACH OTHERS COST AND PERFORMANCE. • HELPS YOU TO STAY OUT OF THE “ NO PROFIT ZONE” • PRESENTS OPPORTUNITIES FOR INTEGRATION. • ALIGNS SPENDING WITH VALUE PROCESS.
THANK YOU.
