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Value Chain

Transcript: Fun Fact! Value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. Product/Market The concept of a value chain was first popularized by Michael Porter in his book "Comparative Advantage: Creating and Sustaining Superior Performance" in 1985. Classification of Activities http://www.managementexchange.com/hack/mapping-porter%E2%80%99s-value-chain-activities-business-functional-units What is a Value Chain? Value Chain How it relates to what we are learning now? Inbound Logistics - the receiving, warehousing, and inventory control of input materials. Operations - the value creating activities that transform the inputs into the final product. Service - activities that maintain and enhance the products value including customer support, repair services, etc. Market and Sales - activities associated with getting buyers to purchase the product, including channel selection, advertising, and pricing. Outbound Logistics - activities required to get the finished product to the customer, including warehousing, and order fulfillment. Many believe that while Porters value chain concepts are still building blocks for a successful business, many now believe it is no longer completely necessary. Procurement - This is the purchasing activity of the inputs to transform these into finished products or services. Technology Management - Technology can be used in production to reduce cost, to develop new products, increase customer service facility, build up cost effective process, etc. Human Resource Management: The key roles of HR are to support the attainment of the overall strategic business plan and the objectives. Infrastructure: This includes the planning management, legal framework, financing, accounting, public affairs, quality management, general management, etc. Bibliography Support http://www.quickmba.com/strategy/value-chain/ http://blogs.hbr.org/2012/02/why-porters-model-no-longer-wo/ Total Quality Management seeks to improve the quality of products and services. Value Chain, as well seeks to deliver a high quality product and service to the customer. Total Quality Management Activities Porter separates the activities into two classes. Primary Activities - Market and product related activities. Support Activities - infrastructure, technology, procurement, and human resource management. Porter identified a set of activities to add more value to the product and services. The goal of these activities is to create value that exceeds the cost of providing the product or service, therefore creating a profit margin. Based on Jim Harvey's speech structures

Value chain

Transcript: STRATEGIC MANAGEMENT Group: 212053_11 Date: 28_February-2022 Name: Nelson Barrios Pedraza Case: Value Chain AIRBNB VALUE CHAIN The AIRBNB value chain is related to the level and extent of support customers receive after the sale. The excellent level of customer service is one of Airbnb's main competitive advantages. Airbnb bets on attention with hospitality and wanting to offer its users an experience that gives them the feeling of being part of the place of destination. Primary Activities • Inbound Logistic or phurcase 1 Airbnb's inbound logistics for its core services take just a few minutes due to its online nature. The hosts can enter their properties very quickly and in the same way the guests can select the one of their preference. • Operations 2 AIRBNB operations include activities such as key handling, housekeeping, and interior services. These types of activities are carried out by the hosts, not the company, and the platform's business model allows the company to scale the business anywhere in the world. • Outbound Logistic or Distributions: 3 For Airbnb, departure logistics represent one of its smaller activities, taking into account that accommodation services, experiences and adventures are provided by the hosts, but not by Airbnb. Service: 4 Airbnb focuses on providing a high level of satisfaction to its customers, this gives it competitive advantages over other companies. Airbnb's customer service team has hundreds of agents available by phone, chat and email, 24/7, in all time zones and in 30 different languages. • Marketing and sales: 5 Airbnb's marketing strategy to its target customers is carried out through a large number of communication channels, integrating its message of providing guests with the experience of living like locals during their stay and in the place of choice, with very low costs. and the best attention.. 2 Support Functions in the Value Chain • Organization infrastucture: 1 The infrastructure of the Airbnb organization is made up of groups between 6 and 7 people grouped in each region, since the greatest interaction of guests and hosts is carried out through technological platforms. • Human Resource Management: : 2 The approach that Airbnb seeks to give its guests to create a memorable experience also idealizes it with its work team, offering experiences to its employees such as appreciation, communication, education, recognition, space, guaranteeing during the process that the fundamental values of Airbnb they are communicated and instilled in their development. Technology development 3 Algorithmic management has allowed the development of the digital economy, including the collaborative economy. Airbnb has taken advantage of this development and has managed to control the practices of the hosts, this has allowed its development with a collaborative economy approach. Results of the Value chain for Airbnb RESULTS The AIRBNB value chain is related to the level and extent of support customers receive after the sale. The excellent level of customer service is one of Airbnb's main competitive advantages. Airbnb with its strategic management seeks to provide its guests with hospitality-based care and want to offer its users an experience that gives them the feeling of being part of the place of destination; This strategy has allowed it to position itself as one of the most important competitors in the development of collaborative economies based on digital platforms. Since its inception, Airbnb has constantly carried out strategic diagnoses that have allowed it to evaluate the experience of its guests, hosts and, of course, its employees, who, as a fundamental part of its organization, have also established environments and comfort conditions for their best performance and experience with Airbnb.

VALUE CHAIN

Transcript: GROUP THREE MEMBERS BROOKSIDE VALUE CHAIN. FARM FRESH PRODUCTS Farm Fresh Standard Milk Farm Fresh Whole Milk Crate-O-Milk These are whats produced after an industrial process. The output products of Brookside include; With well connection between the value chain components, output increases thus margin increase to the company. Distribution center e.g Agents Wholesalers The majority of Brookside’s suppliers are either smallholders or small cooperatives. Farmers bring their milk to collection centers located throughout the country. Before accepting every delivery, Brookside’s experts test the milk and immediately notify the farmer if his product meets Brookside’s quality standards. He then receives an immediate notification of the results and a price offer if the milk passes inspection. If the milk is rejected, the company provides the farmer with recommendations for improving the quality of the next delivery. The Farmers are then paid two weeks after the end of the month in which the milk is delivered. COLD CHAIN PRODUCTION Processes VALUE CHAIN COOPORATE RESPONSIBILITY Brookside's value chain involves getting inputs from farmers which is mainly milk which is processed and packed to various output products such as processed milk, yoghurt and other dairy products. VALUE ADDITION Retailers/vendors It represents the internal activities a firm engages in when transforming inputs into outputs. Porter (1985), states that a value chain consists of; Primary activities Secondary activities. CULTURED PRODUCTS Lala Cup yoghurt Tetra Yoghurt The company is guided by the principle of Goodness for all through which they commit themselves to mutually beneficial partnerships with their suppliers. In addition, Brookside has developed sophisticated key performance indicators to ensure consistent high production with consistent high quality. The company closely monitors its products for fat content and bacteria levels. Hotels Shops Kiosks Supermarkets. BRIEF COMPANY HISTORY Packets crates Bottles COMPONENTS OF A VALUE CHAIN. conclusion Inbound Logistics - involve relationships with suppliers. Operations - are all the activities required to transform inputs into outputs. Outbound Logistics - include all the activities required to collect, store, and distribute the output. Marketing and Sales - activities inform buyers about products and services. Service - includes all the activities required to keep the product or service working effectively for the buyer after it is sold and delivered. CREAM PRODUCTS Butter Whipping cream Double cream Ghee LONG LIFE PRODUCTS Whole Milk Flavored Milk Low Fat milk Packed Procurement - is the acquisition of inputs, or resources. Human Resource management - consists of all activities involved in recruiting, hiring, training, developing, compensating and dismissal. Technological Development - pertains to the equipment, hardware, software, procedures and technical knowledge brought 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 or departments such as accounting, legal, finance, planning, public affairs, government relations, quality assurance and general management. After processing; QUALITY CONTROL. EXECUTIVE SUMMARY During transportation of milk products temperature is controlled from farm to factory to table in order to maintain consistent quality. From the collection centers, the milk goes to cooling centers, where it is chilled to between six and seven degrees Celsius. After cooling, the milk is loaded into specialized trucks for transfer to the appropriate processing facility. KINOTI NEEMA NKATHA 640194 OLIVEIRA DANIELA CRYSTAL 641960 MWAURA ISABEL NJERI 643245 WAINAINA JOAN WAIRIMU 643047 GITONGA ANNE WAMUYU 644880 ADAMSON NICKSON AGESA 644866 ODHIAMBO NASHON YONGO 633385 MBUGUA ZIPPORAH 640540 TRANSPORTATION, DISTRIBUTION AND RETAILING According to Kibera (1997), business inputs are the resources available to an organization and are also known as factors of production Brookside’s inputs include; land/ natural resources raw milk Capital Labor Entrepreneurship/management machinery INPUTS Transport Brookside adds value in a number of ways: Provide an extension services to improve the quality of the cows and the quantity and quality of milk produced. Guarantee farmers market for their products. They have partnered with Equity bank and Kenya Commercial bank to facilitate credit at favorable rates for their supplier to expand their business. The collection centers are located as near as possible to the farmers They help the farmers cooperatives set up cooling facilities They offer farm inputs and animal feeds on credit to farmers and then taken to; Secondary activities Its a Kenyan Dairy company that produces fresh milk and other dairy products. It is the largest dairy operation in East Africa and currently operates in Kenya, Uganda, Tanzania and in addition, it exports

value chain

Transcript: Value chain and Swot Baoyu Yi H00306054 Shulang Zhang H00313402 Majestic Highland Majestic Highland Foods was established in 1993 by three brothers. Aim to provide low price products to local communities. Majestic Highland Food Value Chain 偶发of MHF Value chain Value chain Value chain analysis views the organisation as a sequential process of value-creating activities, and attempts to understand how a business creates customer value by examining the contributions of different activities within the business to that value. Support activities Support Activities Multi-task workers Sale volume determines the employment Human resource HRM Labour based service and operation Low technology used in their operation Traditional grocery store Technology development Technology development Negotiation with local suppliers to get low price goods. This activity is very important for retail supermarket to lower the cost. Procurement Procurement Many branch stores Low price products Infrastructure Infrastructure Primary activities Primary Activities All goods crowd in small stores Inbound logistics Inbound logistics Cost-oriented style Require few workers to provide high level of service Operation Operations MHF built strong bargaining positions with local suppliers of products and transportation Outbound logistics Outbound logistics Low price products High sale volume Limited product range Marketing and sales Marketing and sale Local responsiveness Cheapest price guaranty Service Service SWOT of MHF Low price This strategy helped them win the title of “Highest food price in the Highlands” in the Scottish Highlands. And it helped MHF Opened more stores in Oban, Thurso, Ullapool and Nairn. By 2000, the annual sales of its six stores had reached 50 billion pounds Small store size This store selection policy stems from the large vacant retail space below 2000 square feet in most highland towns. It also means that MHF can get low-cost rents. Strengths Strengths Limited service The small size of MHF stores also means they provide limited services to their customers. However Companies such as Tesco, Sainbury and Asda will give them options. Low cost strategy In Glasgow and Edinburgh, cost control alone is not enough to ensure customer interest or success. Weakness Weakness Branding MHF by establishing strong negotiating positions with local product suppliers (such as groceries, agricultural products and meat). This can support MHF to provide high-quality food to find potential customers. Delivery MHF also effectively reduces costs by establishing strong negotiating positions with local services such as transportation. They can the deliveryman deliver the goods to the customer‘s home. Gain the priority from the peer competitor Opportunity Opportunities Unsanitary meat food Re-processing the rotten meat in sausage this incident was reported by employees and led to the loss of consumers and their reputation. Intense competitive environment Supermarkets (ie Tesco, Sainsbury's, Asda, Safeways and Somerfield), Complete convenience store chain (ie Scotmid, Alldays and Spar) And other low-cost supermarket competitors (ie Aldi and Lidl). These supermarkets will compete with MHF for the same market. Threat Threats

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