Management Information Systems

Assignment 2
Topic: Applying Value Chain on an organization
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Course Code : MIS442
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We are going to apply the Porter’s Value Chain Model on “X” company. The company pattern
has both primary and support activities.

 Primary activities: The activities that are involved in the creation, sales and transfer of
products (including after-sales service).

These all are the primary activities.

 Inbound logistics
 Operations
 Outbound logistics
 Sales and marketing
 Service and support

 Inbound logistics:

It’s concerned with receiving, storing, distributing inputs of ‘X’ company.

For example

 Handling of raw materials

 Warehousing
 Control of inventory control

 Operations
- Operations of the ‘X’ company will comprise the transformation of the inputs into the
final product form.

(E.g. production, assembly, and packaging)

 -Outbound logistics

Involve the collecting, storing, and distributing of the ‘X’ company’s services to the buyers (e.g.
processing of orders, warehousing of finished goods, and delivery)
  Marketing and sales

It’s the identification of the ‘X’ company’s customers’ needs and generation of sales.

(E.g. ADVERTISING, PROMOTION, DISTRIBUTION)

 Service

Involves how to maintain the value of the company’s service, it might be a product of the
company that is popular in the world.

(E.g. Installation, repair maintenance, and training)

 Support Activities: It’s basically those activities which support the primary activities
to accomplish its task.

 Firm infrastructure

The activities such as Organization structure, control system, company culture are categorized
under the infrastructure of the company X.

- Human resource management

HRM of the company will be 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 X Company.

- Procurement

Concerned with the tasks of purchasing inputs such as raw materials, equipment, and even
labor of the Company X.
Now, the main question is what will be the outcome?

- This value chain is a tool for systematically examining the activities of X Company and
how they interact with one another and affect each other’s cost and performance.

- Company X will gain a competitive advantage by performing these activities better or at

a lower cost than competitors.

- It will help Company X to stay out of the “No Profit Zone”

- It will assure the current profitability and the strategic position of Company X.