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Quote: Turning a global presence into global competitive advantage requires a company to
exploit the value creation opportunities generated by global presence and to meet related
challenges

VALUE CHAIN:
Value chain is a high-level model of how businesses receive raw materials as input, add
value to the raw materials through various processes, and sell finished products to customers.
The value chain is a systematic approach to examining the development of competitive
advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980). The chain
consists of a series of activities that create and build value. They culminate in the total value
delivered by an organization. The 'margin' depicted in the diagram is the same as added value.
The organization is split into 'primary activities' and 'support activities.'

PRIMARY ACTIVITIES:

Inbound logistic: - The receiving and warehousing of raw materials and their distribution to
manufacturing as they are required.
Operation: - The processes of transforming inputs into finished products and services.
Outbound logistic: - The warehousing and distribution of finished goods.
Marketing & Sales: - The identification of customer need and the generation of sales.
Services: - The support of customers after the product & services are sold to them.

PROPPED PRIMARY ACTIVITIES:

The infrastructure of the firm: - organizational structure, control system, company culture etc.
Human Resources Management: - Employee recruiting, hiring, firing, training, development,
and compensation.
Technology: - Technology to support value-creating activities.
Procurement: - Purchasing inputs such as material, supplies, and equipment.

When one thinks about of innovative value chain management, it is common and useful to
look at the exploits fast-clock speed industries and organizations – what are sometimes called
the “fruit flies” of our economy. The dynamic evolution of these organizations, the upstart new
ventures or the aggressive electronics giants, can teach a great deal about industry and value
chain dynamics. With rapidly shifting supply chains and high-clock speed technologies, these
firms often provide useful lessons for responding to cutting-edge strategic challenges. & here I
have discussed some value chains of Relative organizations.

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Wal-Mart Stores Inc


Mission Statement:

"Our mission is to enhance and integrate our supplier diversity programs into
all of our procurement practices and to be an advocate for minority- and
women-owned businesses."

Wall Mart Value Chain:

Manufacturer  Vendors  Distribution Centers  Wall Mart Stores

Inbound Logistics: Costs: 2%- 4% of Sales

Shippers are always on the lookout for ways to speed product from source through supply chains
to the consumer, and Wal-Mart's "Remix" distribution strategy is a two-track inbound logistics
system that will separate high-turnover goods from slower-selling products to reduce stock-outs,
especially in its fast-growing grocery stores. Wal-Mart has leaned on its vendors to work with
transportation and logistics providers to consolidate less-than-truckload deliveries into truckload
freight before it reaches a store.

Outbound Logistics:
Costs: 2-3% in cost savings
Store rental costs: 2% of sales

Wal-Mart operates an unrivaled global network of 146 distribution centers. Included in that total
are 103 domestic distribution centers that service its approximately 2,800 discount stores, super
centers and Neighborhood Markets and 525 Sam's Clubs, and another 43 facilities that service
Wal-Mart's 1,300 international units located in nine countries.

“Every time you roll out another distribution center you have to realign the network to make the
system more efficient,” Wade said.

Technology:

Wal-Mart Stores Inc is backed by RFID system (radio-frequency identification tags) on shipping crates
and pallets a move that’s likely to spur broader adoption of the technology because of Wal-Mart’s market
clout.
RFID uses low-powered radio transmitters to read data stored in tags that are embedded with tiny chips
and antennas. Proponents of the technology say such “smart” tags can store more detailed information
than conventional bar codes, enabling retailers and manufacturers to track items at the unit level.

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Human Resource Management:

As part of its ongoing efforts to foster diversity and equal employment opportunities. Wal-Mart
Stores Inc. Employment Practices Advisory Panel. The Panel works with Wal-Mart's senior
management to develop and implement progressive enhancements to equal employment
opportunity and diversity initiatives for the nation's largest private workforce.
"If you resource yourself with the right people and have a culture that understands the need to
continually change, then your ability to address unknown or unexplained events is much
greater," Wade said. "This is one extreme advantage that Wal-Mart has."

DELL Inc
Mission Statement:

"To be the most successful computer company in the world at delivering the best
customer experience in markets we serve."

Dell Value Chain:

Hardware selection (product features and performance) Order process (order and payment
processes) Software selection (Setup &Installation process)
Internet connection service (maintenance, repair, support)

Inbound logistics:
The receiving and warehousing of raw materials and their distribution to manufacturing
as they are required as per customer order specification since DELL is unique with the reason
that its 1st and last steps begins & ends at customer.

Operations:
The processes of transforming inputs into finished products and services according to
customer orders.

Outbound logistics:
The warehousing and distribution of finished products, the inventory holding is very
effective in Dell since the system is built-to-order)
Services:
Customer Support, Dell Inc provides 24 hours customer support online as a built-in live web chat
option on its website as well as on 24hrs toll free helpline just to value its customer and to take
high quality feedback to make its future products carefully and as innovative as per order
specification.

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UFONE GSM
Mission Statement:
“To be the best Cellular option for U! “

Ufone Value Chain:

Manufacturers (Manufacturing of Sims)  Sales & Service Centers/ Franchises & Ushops
(Distributed to Several Authentic Sellers)  Activation (Activation of SIMS via 789 Contact
Center (PTA) regulations)  Services (Customer Support & Services)

Inbound logistics:
The receiving and warehousing of SIMS (Subscriber’s Identification Modules) without
IMSI no’s defined, Handsets

Outbound logistics:
The warehousing and distribution of finished products to the different
Sales & Services Centers, Franchises, U Shops, Retailers.

Marketing & Sales:


Marketing Announcement via media’s, offering promotional campaign (offers), BBFD
(Bring Back From Dormancy) promotions & relative techniques of Lucky Draws and other
techniques to create desire among people and to provide them utter satisfaction & to win back
disgruntled customers

Operations:
The processes of transforming & ascending in order for which tailor made software’s are
being used to record & maintain inventory and for activation, deactivation and service control
purposes. Designing & offering vast range of attractive VAS to target people from different
demographics for their well interest and satisfaction with high quality affordability and usage
pride.

Services:
24 hours Customer Service Help Line, more than 2500 + sales service centers to deal and
take ownership of problems with willingness of help since Ufone Believes

”You never have a product or price advantage again. They can be easily duplicated, but a
strong customer service culture can’t be copied.”

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GUL AHMED Textile Mills LTD


Mission Statement:

“To deliver value to our partners through innovative technology


& teamwork fulfilling our social and environmental responsibilities “

GUL AHMED TEXTILE


VALUE CHAIN:

R& D  Samplings of Fashions & Designs  Raw Materials  Fashion Catalogs 


Manufacturing  Warehousing  Distribution Centers
 Exports

Operation: -
GUL AHMED holder of ISO 9000, as well as of ISO 14000 certifications from internationally
renowned ISO auditors. Transparent operation, flourished technology, well cultured, hassle free
productive environment best defines operations of GUL AHMED. The processes of transforming
input into finished products. The Gul Ahmed is a network of composite mills which manufacture
good from yarn to finished goods in order to achieve and maintain high quality, the conversion
of raw material into finished product of Gul Ahmed are cloth, (Quirt covers, cushion covers, bed
sheets sets etc.) thread.

Procurement: -
Being a recognized Member of WTO. Procurement department of Gul Ahmed don’t face
any damned challenge in arranging raw materials and materials for input it works in a manner to
import/purchase the machinery, arrange fuelling for highly sophisticated machineries, and to
manage every possible latest equipment which is needed in the company, and to make the
production process hassle free, to decrease lead time & be the reason of supplement to every
department of the company. To fulfill and reply every rivalary challenge!

Technology: -
On the national level, Gul Ahmed a firm having legitimate competitive edge over other rivalries
since that its there strong belief that

“The first rule of any technology used in a business is that automation applied to an efficient
operation will magnify the efficiency. The second is that automation applied to an inefficient
operation will magnify the inefficiency.”

Gul Textiles is an established textile company, which has excellent production facilities. They
have excellent machinery and CAD/CAM systems efficient and accurate ways of processing data
into information by using different types of information systems like expert systems, knowledge
based systems, sales management, and online systems so that customers can track their orders
over the Internet

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Infrastructure of the firm: -


Infra structure of a firm is the point of interest for the judgment of company’s stake holder’s
between its logical to an extent that the firms building should be concrete and its foundation
should be strong up to maximum level since that as per IFRS and AFS, the fixed assets are to
depreciated yearly (IFRS 65) even thought apart from it, the building when being utilized for the
production must be meeting all Factories Act and All business assets codes of LAW as GUL
AHMED fulfilled

GOOGLE INC.
Google," a play on the word "googol," the mathematical term for a 1 followed by 100 zeros.

Mission Statement:

"To make the world's information universally accessible and useful"

GOOGLE Value Chain:


R & D  Information Architecture  Information Organization 
Information Retrieval  Reconciliation via Meta Data  Updating of Information by
Meta Data Unit

Operations:
”Where is the Wave Taking Google. And it yelled Google the world with Google” , the idea
serves as the core basics of GOOGLE INC. the framework of mission statement is carried out
with world 3 highly strategic research experts analyzing intact goggling world with their
experience. And making their mission possible with the cordial group of Employees with a
decentralized management system

Procurement:
Procurement for the place where technology flourishes would be the norm of advance
technological supplement which indeed requires highly sophisticated storage servers, technically
advanced equipments, parts such as processors making the experts possible to get well equipped
and has well comfortable environment which will enable the working unit to get achieve what is
required! Hence Supplement of raw material is just not the basic task of procurement here but an
enabling pace.

Technology:
At Google, Technology BEGINS and INNOVATES by the researchers but for more innovation
certainly it is required that at least the endpoint where currently technology has ended should be
present so this is the basic idea, Google invests more the 65% of its income on appealing
technology for the research purpose. Recently it has been innovated by GOOGLE that
CAPTURE IT & SEARCH concept officially announced on 9th Feb 10

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Human Resource Management:


Google just don’t like quotas in the boardroom or in the office. Winning companies are
meritocracies. They practice differentiation, making a clear distinction between top, middle and
bottom performers. This system is candid and fair, and it’s the most effective way for an
organization to field the best team & believes When we learn something from each other, we're
formed by the experience.... we are authors of each other

“If you think work is boring and you’d rather sip a coffee and chill, if you think notebooks are a
place to make doodles, if you think daydreaming could be YOUR profession, then you’ve come
to the right place! Sit back and relax, the fun has just begun when work sets off @ GOOGLE ! “

OVERALL Conclusion:

We love to get to a mode where we're looking at the number of employees served, the number
of checks processed-we name it, some business metric--and take it out of the technology realm
and tie our success to their success in terms of business but personally In
many successful organizations, financial metrics are only part of the puzzle. Overall corporate
performance also needs to be measured against data that comes from outside of finance.
Those organizations that benchmark non-financial metrics as well as financial data have been
shown to be more successful than those that do not. Enterprises that focus their performance
management initiatives primarily on financial processes and metrics miss a critical opportunity to
deliver on the real vision of performance management & analysis.”

"If you are not managing your value chain, you are not managing your business."

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