Value Chain

• Value chain analysis is much important for each organisation

as its divide firm in to various distinct activities carry out by
the organisation such as, designing, manufacturing, marketing
etc. The concept of value chain is developed from accounting
practices which helps to analyse the value added to
organisation at every stage of manufacturing or services or
marketing.
• The value chain involves two types of activities: Primary
activities & Support activities. Primary activities change inputs
(Inbound logistics, operation, outbound logistics, marketing
and sales, service) into outputs and bring them to customer.
All this primary activities are carried out by use of support
activities which are firm infrastructure, Human resource
management, technology development and procurement.