This website uses cookies to ensure you have the best experience. Learn more

Value Chain Analysis

1846 words - 8 pages

A) Discussion of the core elements of a value chain. (8 marks)
B) Explanation of why an understanding of these elements is so important in managing costs and gaining or sustaining competitive advantage. Establish all important linkages in your answer. (12 marks)
The value chain analysis is a useful tool for defining a firm’s core competencies and the activities in which it can pursue a competitive advantage. The core elements of a value chain analysis are the primary and secondary activities and cost. Companies use these primary and support activities as "building blocks" to create a valuable product or service.
The Primary activities relate directly to the ...view middle of the document...

These activities include the advertising, channel selection, product promotion, selling, product pricing and retail management. The activities are performed to make sure that the products are transferred to the targeted customer groups. Marketing mix can be an instrument to take the competitive advantage to the target customers.

Services: Organization offers the services after the products and/or services have been sold. These service activities enhance the product’s value in the form of after sales guarantees, warranties, spare parts management, repair services, installation, updating, trainings, etc.

Secondary activities are cost that are undertaken to aid the individuals and groups engaged in doing the primary activities. They are also the activities that the organization performs to assist the primary activities to gain the competitive advantage. The secondary activities support the primary functions which consist of procurement, Human resources, technological development and infrastructure.
Procurement: This is the purchasing activity of the inputs to transform these into finished products or services. Procurement adds value by the acquisition of appropriate goods or services at the best price, at the right time, and in the desired place with the desired quality and quantity.
Technology development: Technological development relates to managing and processing information, as well as protecting a company's knowledge base. Technology can be used in production to reduce cost, to develop new products, increase customer service facility and to build up a cost effective process. It supports the value chain activities such as research and development, process automation and process design.

Human Resource Management: The key roles of HR are to support the attainment of the overall strategic business plan and the objectives. As a strategic business partner HR designs the work positions by hiring, recognition, reward, appraisal systems, carrier planning, and employee development. They act as an advocate of the employees to motivate them and create a happy working environment. For the organizational changing situation, HR executes the strategic needs of the organization with minimum employee dissatisfaction and resistance to change.

Infrastructure: This includes the planning management, legal framework, financing, accounting, public affairs, quality management, general management, etc. These are required to perform the value added activities efficiently to drive the organization forward to meet the strategic plan and the objectives.
Question 2
It is important for a company to understand these elements in order to manage cost and gain or sustain competitive advantage. The firm’s margin or profit depends on its effectiveness in performing these activities efficiently, so that the amount that the customer is willing to pay for the products exceeds the cost of the activities in the value chain. It is in these activities that a firm...

Other assignments on Value Chain Analysis

Dss In Supply Chain Management And Design

2843 words - 12 pages of implementing LP-based solvers to support the supply/demand analysis, which is supported by the integrated database are real and can be seen from the reduction of data defects (which is one of the key requirement for DSS) and enabling some improvement of the Intel supply chain internal goal, i.e. inventory reduction, cycle time reduction, increase planner’s productivity by reducing non value added job by reducing the number of spreadsheet in

Tips For Case Analysis

1764 words - 8 pages to perfect competition. B) External Analysis: Financial analysis tells you whether your firm has competitive advantage. External and internal analysis tell you where that competitive advantage comes from. Begin with a firm’s value chain. We discussed a generic value chain in the class. But, companies might not have all of the steps discussed in the value chain. A company might have vertically integrated forward or backward, thus have

Conclusion And Future Model For Supply Chain - Toyota

528 words - 3 pages for ramping up production of the second supplier, in the event of a calamity. 3. Analyzing where suppliers are located, and limiting the number of critical component suppliers that are geographically situated in a risky area. For example, an analysis of Volvo’s supply chain indicated “10% of their parts came from 33 Japanese suppliers, 7 of which were located in the catastrophe area,” according to the New York Times. For automotive


255 words - 2 pages Introduction 1.1 Briefly describe of company Amway is a one of the America multinational direct-selling company selling most variety of product such as heath, beauty and home care needs. 2.1 The General Environment 2.1.1Pestles Environmental factor are 2.1.2 Application to the company 2.2 The competitive environment 2.2.1 Poter 5 forces 2.2.2Applicable to the company 2.3 Internal Analysis 2.3.1 Value Chain Activities The Real


3934 words - 16 pages analysis PEST analysis Porter’s five forces analysis four corner’s analysis value chain analysis early warning scans war gaming. An overview of these strategic analysis tools will be provided in this topic gateway. 3 Topic Gateway Series Strategic Analysis Tools Context In the current CIMA syllabus, students will study and may be examined on strategic analysis tools as part of the Management Level Paper 5, Integrated Management

Critically Evaluate Internal Analysis

1315 words - 6 pages . There are methods you can use in order to analyze the internal environment. First you can conduct a value chain analysis and find out what it is that your customers value most and what activities the firm is currently conducting. Secondly, the internal side of the SWOT-analysis can be used to summarize the strengths and weaknesses found. These methods that have been mentioned here will be further explained in the Tools-section. Analytical Tools

Green Supply Chain Management

4001 words - 17 pages Green Supply Chain Matters 2.1 2.2 2.3 2.4 Green Supply Chain Management: Compliance to Value Creation Organizational View on Green Supply Chain Management: A Strategic Analysis Tool Benefits to Industry Green House Gas Emission: Government Compliance PAS 2050 7 7 8 8 8 9 9 9 9 10 10 11 12 12 13 13 14 4 4 5 6 3. Current Industry Scenario 3.1 3.2 Inbound Operation Outbound Operation 4. Problem Statement & Solution 4.1.1 Connectors 4.1.2

Vrio For Kfc

946 words - 4 pages . Value Chain of KFC Fig.: KFC’s Value Chain Porter Value Chain Analysis of KFC: In our value chain analysis we broke down the total service provided by KFC in several set of value creating activities and found out in which stages KFC add value through exceeds the cost of the activities, thereby resulting in a profit margin for KFC. • The primary value chain activities are: Inbound logistics: Chicken, buns, bread, oil, flour, spices


365 words - 2 pages Case # 18 -- Adidas in 2008: Has Corporate Restructuring Increased Shareholder Value? Team and Individual Writing Assignment Please evaluate Adidas’ restructured line-up of sporting goods businesses. Your analysis should identify Adidas’ corporate strategy, evaluate the attractiveness of the industries it has diversified into and the strength of each of its business units, and assess the degree to which strategic fit and resource fit exists in

Vans Analysis

437 words - 2 pages sports clothing company in the world [pic] [pic] Vans SWOT analysis Strength • A well-known brand with strong reputation (Vans has been in business for over 40 years) • Not too expensive for the consumer, great product pricing comparing with other brands • High product quality / High perceived value (cushioning, durability, reinforcement for skateboarding) • Strong distribution chain (Online shopping, About 76

Supply Chain Management

417 words - 2 pages relationships with them. Therefore SCM is viewed as a strategic approach for integrating demand, operation, procurement and managing logistical processes. Organizational Performance (OP) is defined as “An analysis of a company’s performance as compared to goals and objectives. Within corporate organizations there are three primary outcomes analyzed: financial, market and shareholder value performance.” The relationship between organizational

Similar Documents

Five Forces And The Value Chain Analysis

1868 words - 8 pages Number words in essay:1755 'LAGENFURT PUB' Five forces and the Value chain analysis. Abstract The purpose of this essay is to present business decisions and strategies through analysing external environment and internal competencies based on Michael Porter's Five force and Value chain models. The Fife force model include: threat of entry, threat of substitutes, power of buyers, power of suppliers, competitive rivalry

E – Commerce & Value Chain Integration

5479 words - 22 pages ------------------------------------------------- ------------------------------------------------- E – Commerce & Value Chain Integration ------------------------------------------------- ------------------------------------------------- Group Assignment ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- (B2C

The Role Of The Engineer In The Value Chain

1541 words - 7 pages The Role of the Engineer in the Value Chain 49680: Value Chain Engineering Systems Assignment 1 LE Ngoc Thang 11187604 Table of Contents 1. Summary 5 2. Introduction 6 3. Value Chain 7 4. Engineering in Value Chain 9 4.1 Inbound Criterions 10 4.2 Warehouse management Criterions 11 4.3 Logistics Operation Specifications Criterions 11 5. Conclusion 14 6. Reference 15 Table of Figures Figure 1 Supply chain of a Router 7

What Essay

318 words - 2 pages PIZZA HUT & VALUE CHAIN ANALYSIS: About Value Chain Analysis: Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. A value chain identifies and isolates the various economic value adding activities such as differentiating a product, lowering the cost, and meeting need quickly that occur some way in every firm. It portrays activities