Not let’s move on to Operations.

Operations includes all the activities made in order to

transform the raw material into the final product. So for example, a manufacturing a t
shirt. From cutting the cotton the pattern of the shirt, sewing it, printing its design, and
packaging the final tshirt is included in the OPERATIONS of the company.

So when the operations are efficient, again it will make the costs lesser, the quality of
the product better, cause there will be less waste of materials and need of rework, there
will also be greater amount of production. Having a good environment in the production
will help the operations operate efficiently. Is the temperature inside the factory just right
for the employees? Is it safe and sanitary? Are the operations sustainable too? Of
course when you are operating you also have to take into account the local laws about
the environment thus your operations must be regulated. Your wastes must be thrown
to proper dumpsites. Or your carbon dioxide emission should be lesser. By taking care
of the environment, it will also help boost your reputation to the public. This is what most
mining companies do. Since their very operations involve the environment thus in order
to improve its reputation with the public, mining companies make reports as to how they
help the environment in exchange. Example tree planting activities.

The next activity is OUTBOUND LOGISCTICS. Now it’s about from the company to the
customers. It involves warehousing the finished goods. Of course we all know what’s
finished goods. So, we have to consider the space and the condition of the warehouse
for the finish goods. Is it enough for all of it. Is it safe and would ensure the goods will
not be damaged while stored or again will it not be stolen?

It also involves order processing, delivery vehicle operation and scheduling of shipment.
How does the company plans the volume of its deliveries and the duration of such
delivery. Customers hate delay diba. So we have to make sure that the products arrive
at the date the customer expects it while also minimizing the shipment costs.

The fourth activity is the MARKETING AND SALES

It involves the activities on how the firm encourage or persuades the customers to buy
their product. Examples are advertising and promotion. IS the advertisement and
promotion attractive for the buyers? Will it make the buyer think of the product right
away when watching it? Will it make the buyer buy the product? Also we should
consider whether the gain from the promo would outweigh its costs. It also includes
sales force. Are there enough staffs for the marketing and sales department? Do they
have the knowledge and skills that is needed? Are they propery trained and organized?
Lastly, the most important activity is PRICING. Is the price appropriate for the product?
Will it not result to losses to the company? Pricing is very important and the company
must consider various factors before deciding on it.

And the last activity, is SERVICE. It actually deals with activities after the purchase. An
example is installation. When you purchase an airconditioner, for example in SM
Gensan, they actually have an employee who will install the aircon of course with
charges. Another one is repair. In those products with warranties, if you have xperience
it, for example your washing machine, if within the 1 eyar warrant, and your washing
suddenly wont operate properly, of course it will be repaired. Another example is
product adjustment. This one is actually a bit different, it means changing of a product
in order to provide superior satisfaction and win over buyers from other brands
and products.

Now let’s move on to the SUPPORT ACTIVITIES.

Support activities can be divided by four generic categories,

The general administration, Human resource management, technology development

and procurement.

First is the General administration. It includes general management, planning, finance,

accounting, legal and government affairs, quality management, and information
systems. Administration (unlike the other support activities) typically supports the entire
value chain and not individual activities.

Second is the human resource management. Of course we all know what HRM is, it
involveds recruiting, hiring, training, development, and compensation of all types of
personnel. It supports both individual primary and support activities and the entire value
chain. How does it support those activities? Because HRM is the one who supplies
those activities with the employees. So what do we check in the HRM activity? How do
the firm attract talented individuals? Ofcourse if you as a person who wants to apply in a
company, and you know your worth, you will be attracted in a firm who makes you feel
valued, will make you develop your skills, with a good working environment, and of
course offering a salary you are satisfied with. That’s why it is important for the Human
Resources of a company to know how to attract applicants. Also the HR should know
which department they would place the newly hired employee and what position he/she
is suitable.

Third support activity is technology development. It relates to the product and its
features which supports the entire value chain, while other technology development is
associated with particular primary or support activities. So what technology should the
company acquire? Is it suitable for the company? Is the costs in acquiring the
technology worth it as it could produce bigger gains? Will it help improve the operations
or increase the daily production of the firm?

Last support activity is procurement.  Procurement refers to the function of purchasing

inputs used in the firm’s value chain. Its main role is to ensure that all raw materials,
equipment, industrial consumables and services required for the production are
available. Procurement also involved checking from which supplier it is best to
purchase the materials by checking for example reviews and past experiences.