Value Chain Ppt

8/11/2019 Value Chain Ppt

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VALUE CHAIN


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The regard that something

is held to deserve; theimportance, worth, or

usefulness of something.


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A high-level model of how businessesreceive raw materials as input, add

value to the raw materials throughvarious processes, and sell finishedproducts to customers.


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MICH EL PORTER V LUE CH IN

"The idea of the value chain is based on theprocess view of organizations, the idea ofseeing a manufacturing (or service) organizationas a system, made up of subsystems each with

inputs, transformation processes and outputs.Inputs, transformation processes, and outputsinvolve the acquisition and consumption ofresources - money, labour, materials,

equipment, buildings, land, administration andmanagement. How value chain activities arecarried out determines costs and affects profits."


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PRIMARY ACTIVITIES

According to Porter (1985), Inbound Logistics- involve relationships with suppliers

and include all the activities required to receive, store, anddisseminate inputs.

Operations- are all the activities required to transforminputs into outputs (products and services).

Outbound Logistics- include all the activities required tocollect, store, and distribute the output.

Marketing and Sales- activities inform buyers aboutproducts and services, induce buyers to purchase them, andfacilitate their purchase.

Service- includes all the activities required to keep theproduct or service working effectively for the buyer after it issold and delivered.


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SECONDARY ACTIVITIES

Secondary activities are: Procurement- is the acquisition of inputs, or resources, for

the firm.

Human Resource management- consists of all activitiesinvolved in recruiting, hiring, training, developing,compensating and (if necessary) dismissing or laying offpersonnel.

Technological Development- pertains to the equipment,hardware, software, procedures and technical knowledgebrought to bear in the firm's transformation of inputs into

outputs. Infrastructure- serves the company's needs and ties its

various parts together, it consists of functions ordepartments such as accounting, legal, finance, planning,public affairs, government relations, quality assurance and

general management.


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Firm Infrastructure (General Management)

Human Resource Management

Technology Development

Procurement

InboundLogistics

Ops. OutboundLogistics

Sales &Marketing

Service andSupport

PRIMARY ACTIVITIES

SUPPORTACTIVITIES


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DI MOND INDUSTRY V LUE

CH IN MODEL


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TEXTILE INDUSTRY- VALUE CHAIN


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Value Chain Ppt