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    BY SAI CHITRA 20789025 Dinesh 20815344 SANDEEP 20817207 MANEESH 20817347

    Uploaded by

    Mehdi Hafdi
    The document discusses the concept of value chain analysis. It defines value as being determined by customers based on quality, service, and price of a product, rather than by the supply chain itself. A value chain is described as a string of companies working together to satisfy market demand for a product. Key components of a value chain include support activities like infrastructure, human resources, technology development and procurement, as well as primary activities like inbound and outbound logistics, operations, marketing and sales, and service. Benefits of value chain analysis include streamlining supply chain processes, improving efficiency, and helping plan production and distribution strategies. Limitations are that value is only theoretically assessed until the customer receives the product.

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    BY SAI CHITRA 20789025 Dinesh 20815344 SANDEEP 20817207 MANEESH 20817347

    Uploaded by

    Mehdi Hafdi
    34 views7 pages
    The document discusses the concept of value chain analysis. It defines value as being determined by customers based on quality, service, and price of a product, rather than by the supply chain itself. A value chain is described as a string of companies working together to satisfy market demand for a product. Key components of a value chain include support activities like infrastructure, human resources, technology development and procurement, as well as primary activities like inbound and outbound logistics, operations, marketing and sales, and service. Benefits of value chain analysis include streamlining supply chain processes, improving efficiency, and helping plan production and distribution strategies. Limitations are that value is only theoretically assessed until the customer receives the product.

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    51468541-value-chain

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    51468541-value-chain

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    The document discusses the concept of value chain analysis. It defines value as being determined by customers based on quality, service, and price of a product, rather than by the supply chain itself. A value chain is described as a string of companies working together to satisfy market demand for a product. Key components of a value chain include support activities like infrastructure, human resources, technology development and procurement, as well as primary activities like inbound and outbound logistics, operations, marketing and sales, and service. Benefits of value chain analysis include streamlining supply chain processes, improving efficiency, and helping plan production and distribution strategies. Limitations are that value is only theoretically assessed until the customer receives the product.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    34 views7 pages

    BY SAI CHITRA 20789025 Dinesh 20815344 SANDEEP 20817207 MANEESH 20817347

    Uploaded by

    Mehdi Hafdi
    The document discusses the concept of value chain analysis. It defines value as being determined by customers based on quality, service, and price of a product, rather than by the supply chain itself. A value chain is described as a string of companies working together to satisfy market demand for a product. Key components of a value chain include support activities like infrastructure, human resources, technology development and procurement, as well as primary activities like inbound and outbound logistics, operations, marketing and sales, and service. Benefits of value chain analysis include streamlining supply chain processes, improving efficiency, and helping plan production and distribution strategies. Limitations are that value is only theoretically assessed until the customer receives the product.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    BY SAI CHITRA 20789025 DINESH 20815344 SANDEEP 20817207 MANEESH 20817347

    VALUE........?
    VALUE is not define by the factory or by the supply

    chain. VALUE is define by the customers. It depends on: Q-Quality of the product S-Service of the product P-Price of the product

    VALUE CHAIN
    The value chain, also known as value chain analysis, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. A Value Chain is a String of Companies or Players working together to satisfy market demand for a particular product . Value chain is critical tool to business development because it espoused the idea that, according to Kotelnikov (2001) success in digital economy is the implementation of an integrated value chain that extends across - and beyond - the enterprise. The value chain framework has been used as a powerful analysis tool for the strategic planning of an organisation for nearly two decades. The aim of the value chain framework is to maximise value creation while minimising costs.

    Support activities

    The support activities of a company include the following:

    Firm Infrastructure This includes planning and control systems, such as finance, accounting, and corporate strategy etc. (Lynch, 2003). Human Resource Management This is a function concerned with recruiting, training, motivating and rewarding the workforce of the company. Human resources are increasingly becoming an important way of attaining sustainable competitive advantage.

    Technology Development This is an area that is concerned with technological innovation, training and knowledge that is crucial for most companies today in order to survive.
    Procurement This function is responsible for purchasing the materials that are necessary for the companys operations. An efficient procurement department should be able to obtain the highest quality goods at the lowest prices.

    Primary Activities

    The primary activities (Porter, 1985) of the company include the following:

    Inbound logistics
    They are received and stored until they are needed on the production/assembly line .

    Operations
    This is where goods are manufactured or assembled . Example , hotel or the final tune for a new cars engine .

    Outbound logistics
    Distributing the final product . Example, in case of a hotel this activity would entail the ways of bringing customers to the hotel.

    Marketing and sales


    At this stage the organisation prepares the offering to meet the needs of targeted customers.

    Service
    Need to provide services for customers such as pre-installation before or after the sale of the product or service and so on.

    Benefits of Value Chain


    value chain strategy helps to streamline the supply chain process, giving balance to it and professionally deliver the products end to end from

    manufacturing to the end level of distribution. Value chain strategy definitely increase efficiency of the organization by streamlining the process and it helps organization to save lot of resources which results in eliminating wastages and save money and which will help organization to provide competitive products to the end consumers. Business performance will be improved on all the major departments such as production, sales and transportation. On each department you can monitor what is happening and easily make decisions to improve it. Bridges the gaps between each process in the chain, finding out the gaps will be very easier and organization can concentrate on a particular process which is very weak and strengthen and make it a fail safe solution. Helps to plan about the supply according to the demand and determine the distribution strategy and make adequate changes to it.

    Limitations of Value Chain


    The limitations of the model include the fact that value for the final customer is the value only in its theoretical context (Svensson, 2003), and not practical

    terms. The real value of the product is assessed when the product reaches the final customer, and any assessment of that value before that moment is only something that is true in theory. Despite this limitation, analysts can effectively use the value chain model to determine the value to the final customers in a theoretical way. Use of other planning tools and techniques like Porters generic strategies, analysis of critical success factors etc. is recommended in conjunction with the value chain framework for a more comprehensive analysis of a companys strategy and planning.

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