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Value

Chain
Analysis
A value chain is used to describe all the activities it
takes to create a product from initial to final stage.
A value chain analysis gives businesses a visual model
of these activities, allowing them to improve their
competitive advantage.
Primary activities

Inbound Logisticis
The activities associated with Inbound logistics are
recieving, storing and disseminating information to
product. Eg: Warehousing, Inventory Control
and Material Handling

Outbound Logisticis

The activities associated with outbound logistics are


collecting, storing and physically distributing the
product to buyers. Eg: Finished goods warehousing,
material handling, order processing and scheduling
Operations
Here we look towards transforming inputs into the
final product form. Eg: Machining, packaging,
assembly and equipment maintenance

Sales and Marketing


Sales and Marketing teams provide channels for
buyers to gain awareness and purchase their
products/services and provide them incentives to
do so. Eg: Advertising, promotion, sales force etc.

Services
Providing service to enhance or maintain the
product value after it has been sold and delivered.
Ex: Installation, Repair, Training etc.
support activities

Procurement
Procurement refers to the function of purchasing
inputs used in the firm's value chain.
Purchased inputs include raw materials, supplies
and other consumable items, as well.

Human Resource Management


The organisation needs to be succesful. Staff will
have to be moivated and paid the "market rate" to to
stay and add value to the organisation.
Technology Development
The use of technology to gain a competitive
advantage is very important in today's
technological driven environment. Technology can
be used in many ways including production to
reduce cost or to develop new products.

Firm Infrastructure
Every firm needs to ensure that their management
structure, finances and legal structure work
efficiently and help drive the organisation forward.
Inefficient infrastructures waste resources that
could ruin the firms reputation, leave it open to
fines or sanctions.

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