Value Chain Analysis by Ahsan Hussain

8/9/2019 Value Chain Analysis by Ahsan Hussain

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Ahsan Hussain - 1 - No Copyrights Allowed

Quote: Turning a global presence into global competitive advantage requires a company toexploit 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, addvalue 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 competitiveadvantage. 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 tomanufacturing 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 calledthe 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, thesefirms often provide useful lessons for responding to cutting-edge strategic challenges. & here I

have discussed some value chains of Relative organizations.

Prepared By :Ahsan Hussain Page 1 3/27/2010

Contact : [email protected]


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Wal-Mart Stores IncMission 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 CentersWall 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 serviceWal-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 thesystem 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 thats likely to spur broader adoption of the technology because of Wal-Marts 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 tocontinually 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 paymentprocesses)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 takehigh quality feedback to make its future products carefully and as innovative as per orderspecification.




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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 ContactCenter (PTA) regulations) Services (Customer Support & Services)Inbound logistics:

The receiving and warehousing of SIMS (Subscribers Identification Modules) without

IMSI nos defined, Handsets

Outbound logistics:

The warehousing and distribution of finished products to the differentSales & Services Centers, Franchises, U Shops, Retailers.

Marketing & Sales:

Marketing Announcement via medias, offering promotional campaign (offers), BBFD

(Bring Back From Dormancy) promotions & relative techniques of Lucky Draws and othertechniques 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 softwares are

being used to record & maintain inventory and for activation, deactivation and service controlpurposes. 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 astrong customer service culture cant 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

ExportsOperation: -

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 freeproductive environment best defines operations of GUL AHMED. The processes of transforminginput 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 dont faceany 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 theproduction 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 inefficientoperation 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 datainto 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 companys stake holders

between its logical to an extent that the firms building should be concrete and its foundationshould 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 GULAHMED 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 byMeta 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 outwith 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, technicallyadvanced 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 anenabling pace.

Technology:

At Google, Technology BEGINS and INNOVATES by the researchers but for more innovationcertainly 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 thatCAPTURE IT & SEARCH concept officially announced on 9 th Feb 10


http://www.google.com/search?q=%221+followed+by+100+zeroes%22&hl=enhttp://www.google.com/search?q=%221+followed+by+100+zeroes%22&hl=en


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Human Resource Management:

Google just dont like quotas in the boardroom or in the office. Winning companies are

meritocracies. They practice differentiation, making a clear distinction between top, middle andbottom performers. This system is candid and fair, and its 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 youd rather sip a coffee and chill, if you think notebooks are aplace to make doodles, if you think daydreaming could be YOUR profession, then youve 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 corporateperformance 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 beenshown 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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Value Chain Analysis by Ahsan Hussain