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VALUE Chain

Transcript: Dont Lose sight of what is IMPORTANT! Know YOUR Business to Grow YOUR Business Timely Delivery Find your Suppliers and Distributors Be Capable Stay True to the Core Communicate and building relationships Get the product in the hands of consumers; direct mail, email broadcast campaigns, outbound calls, going to events with travel Listen to the Needs/Wants of the customer Report Sales YOUR Business Give it Something to run on I.E. a Product or a Service Achieve Balance Production Efficiency Maintain a Facility to work out of R&D: Have a place to test and improve products No: Have a place to store products I.E. warehouse Banking and Financing both for the consumer and the business Hire and work With and In the Community Virtual Chain Firm Level to the customer Become Emersed in Logistics Physical Chain Value through having the best Product Craig Bergman Realize Potential Operations Make The Business CAPABLE THANKS Understand the Market, Consumer and world around you utilizing informatics Value Chain Marketing and Selling Industry Level Identify key chains in ^ click

Value Chain

Transcript: Data on Customer Data on App Developers Reviews and Rating Record Accounting activities Regulatory compliance Quality assurance Allow refunds Reviews and rating system CUSTOMER SERVICE Improve iOS and AppStore consistently for better users' and producers' experience PROCUREMENTS TECHNOLOGY DEVELOPMENT HUMAN RESOURCES ACTIVITIES OPERATIONS INFRASTRUCTURE ACTIVITIES INBOUND LOGISTICS Promoting apps on AppStore MARKETING AND SALES 16,000 Software Engineers 250,000 iOS App Developers Quality Assurance OUTBOUND LOGISTICS Agreement with Developers on app release Calculate Taxes Process Payments Track Transactions

Value Chain

Transcript: Conclusion Firm Infrustructure A company would use the Value Chain because that is how a company can make a profit. It is an analysis that helps the company and makes it easier for the company. It helps them save money, promote their product, satisfy their customers, have the ability to take care of their employees and be able to make a good profit for the company. This is an essential part of having a successful business. What does the Value Chain look like? Operations This is where the company receives all of the goods from the suppliers and how the transportation schedule works, the inventory and storing and use all of these to make the product. Outbound Logistics The Value Chain This is the acquisition of goods from an outside source. This is where you want to get the products for the lowest price. Support Activities of the Value Chain What are the Supporting Activities? This is the process when the company will want to enhance the product for a customer after the product has already been purchased. This could be replacing a broken product to helping them figure out something that they might not of known to do with the product. This is where the company manages and processes information. This helps with costs and developing new products. Technology This is the part of the business that hires, trains, rewards and overall keeps the employees happy. This is where the employees go to if they have a problem or conflict. Inbound Logitics Marketing The companies support system and the things that let the company function n a daily bases. These are the secondary activities that help the primary activities to make it better for the company and the customer Human Resources Procurement Value Chain Customer Service This is the process of persuading the customer to buy your product. This is the part of value chain that delivers the product to the customers. Based on Jim Harvey's speech structures This is how the inputs are transformed into a final product and sold to customers. Value Chain is a strategy that businesses use to analyze its internal activities. Its objective is to know which activities are the most beneficial to the company and to find which ones need to be upgrade to provide competitive advantage

Value Chain

Transcript: Objective A value chain management framework is established with a strategy process on the strategic level, a planning process on the tactical level and operations processes on the operational level. Value Chain Economies of scale Learning and spillovers Pattern of capacity utilization Linkages Interrelationships Integration Timing Organization policies Location Institutional factors Michael Porter A value chain “disaggregates a firm into its strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of differentiation”. Value Chain Management ENTREPRENEURIAL MANAGEMENT is to increase the value of a product and service. consists of a set of activities that are performed to design, produce and market, deliver and support its product. PORTER'S 10 COST DRIVER OF VALUE CHAIN Mark Anthony S. Nuñez

Template - Value Chain Analysis

Transcript: Procurement: - Choosing sponsors - Partnerships - Suppliers of equipment, training & products - Selecting broadcasters - Signing players - Distribution channels: Real Madrid TV Mobile Other TV networks - Transporting of fans & players for away matches - Inventory for merchandise, e.g shirt orders - E-commerce website Outbound Logistics: Inbound Logistics: Margin - Co-ordination of all activity during the football match - Motivation of players - Managing players social activity - Execution of training programs - Time the delivery of services in corporate hospitality Margin - Stadium, physical grounds - Skilled accountancy department - Contracts, compliance to regulations - Health & Safety - Customer relationship management - Analysis of customer needs and wants through Madrista card - Promotional methods Website Social Media Market segmentation - Open trainings - Public Relations Press conferences Unveiling of signings - KIS System - Internal Communication Systems - Admin, socios members - Training grounds Firm Infrastructure: - Purchase of highlights TV package - Financial products - credit cards - Real Madrid TV - Partnerships with technology firms (Samsung) - Football match ticket sales - General merchandise - Advanced nutrition plans & training sessions - High staff turnover - Department of sports - for player interactions - Management of players image HR Management: Product & Technology Development: Sales & Marketing: Operations: - Cafes, bars and catering - Half time entertainment - Security - Retail outlets - Transportation & parking - Interaction with the app - Infrastructure surrounding the match to enhance the experience - Transportation of players to the game - Match day co-ordination including: physical equipment, stewards etc. - Manage the arrival of material/goods to deliver hospitality, to sell merchandise - Inbound logistics of tourism After Sales Service:

Value Chain

Transcript: The Value Chain The Activities Different strategies within the industry allow everyone to have higher performance Each company's value chain is "tuned" to a certain segment of consumers Imagine Pizza Hut trying to steal Little Ceasars customers by lowering price Imagine Little Ceasars trying to steal Papa Murphy's customers by offering uncooked pizza If multiple firms target the same segment then they decrease the total "added value" There is usually one cost-leader but multiple differentiators Differentiation is possible in many different dimensions Pizza Examples Examples General Motors Walmart Profits = Revenue - Cost Low Cost - not low price Differentiation - higher price Some General Lessons Two Ways to Make Profits

value chain

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Value chain

Transcript: ENTERPRISE VALUE Definitions: Financial Enterprise Value: - method to measure the company’s total value based on the equation below: - the takeover price of an organization presumes that it is bought. Business Enterprise Value:: - Can be measured as a result of intangible assets such as marketing and management skill, working capital, franchises, patents, trademarks, assembled work force, trade unions, operating agreements et cetera (Owens, 1998) Comparison of Financial Enterprise Value: Founded on March 1, 1938 by chairman Byung - Chull Lee in Taegu, Korea, with 30,000 won capital by focusing first on trading and Exportation. Beijing (Samsung, History Timeline, 2014). Known as Goldstar in 1957. It starts with the desire of the owner Koo In-Hwoi to invent and produce the first radio in Korea for the enjoyment of the customers. (LG Company Profile, 2014) RELATIVE COMPETITIVE ADVANTAGE Definition: Differentiation strategy will help an organisation to create certain market position and lead it to a sustainable long run (Porter, 1980) Four main industry value drivers: knowledge management, technology management, process management and relationship management (Russel and Taylor, 2014) Comparisons: COMPANY BACKGROUND SUPPLY CHAIN Value chain analysis 2) Samsung -Proposal system for those who wish to become Samsung suppliers through 3 steps (application, review and feedback processing, partnership) -Samsung is still Apple’s key suppliers for video processor chips although Apple is Samsung strongest competitor. 3) LG -Suppliers are selected through fair and transparent processes and support their operations by helping with business infrastructure development Founded by college dropouts Steve Job and Steve Wozniak on April 1, 1976 with a vision of changing the way people think about computer. Inventing a small and user friendly computer and they did (Richardson & Terrell, 2008). VALUE PROPOSITIONS THANK YOU FOR LISTENING ! 1) Apple -Customer-driven value (engage staffs from the value chain, understand demand cycles within ongoing product life cycles as demand shifts). -The introduction of first iPhone in 2007 - superior design and technological innovation (software systems iOS, iTunes) . -A recent launch of iPhone 6 and 6 Plus - larger screen, enhanced features and support for Apple Pay (Apple Annual Report 2014). 2) Samsung -Wireless connectivity and user-friendly interface which satisfy customers needs, they only ranked 2nd after Apple (Samsung Annual Report 2013). -Better in-class mobile security capabilities, Samsung KNOX-an Android-based solution. that protects mobile phones from data leakage and malware attacks. 3) LG -Focus on Business Infrastructure Development such as Enviromental, Safety and Health (ESH), Iit impacts on consumer spending on mobile phones as low carbon green management strategy helps to increase efficiency in the value chain. - LG allows fair trade compliance and labour policy to maintain fair competition rules and proper transaction standards throughout the value chain (LG Electronics Sustainability Report ). KEY STRATEGIC DIFFERENCES VALUE CHAIN ANALYSIS Different approaches utilised to efficiently integrate suppliers, manufactures, warehouses and stores to produce the final goods at the right quantities, right locations and right time to minimise operational costs while satisfying customers 1) Apple Depends on component, product manufacturing and logistical services provided by outsourcing partners located outside of the US mostly and had relationships with about 200 different companies in 2014. Presented by Jenny Mai, Indira Simanungkalit, Lorena Vilano. Definitions: - One of the important elements in value chain analysis, since it is widely used to understand the value of a product which can be obtained through several elements such as price, quality and location (Hassan, 2012). - Value propositions must be based on several key factors such as the organization’s knowledge of the customers’ benefit of the product, organization’s experience with a customer in on different occasions, and organization’s estimation of the value provided to customer (Keogh, 2008) Purpose: It is necessary for an organisation to be able to create a value proposition that helps the customer to buy and re-buy the products that are being offered in the market. Comparisons: MARKET OPPORTUNITY ANALYSIS

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