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The Genric Value Chain

Michael E. Porter's value chain

ruby gogoi

on 20 February 2013

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Transcript of The Genric Value Chain

The Generic Value Chain Rubi Gogoi
Abhishek Kakkar
Abhigyan Tyagi INTRODUCTION Inbound logistics operations outbound
logistics Marketing
and sales Service Firm Structure Human resource management Technology Development Procurement margin margin Primary activities Inbound Logistics Receiving
Inventory Control
Everything to do
with externally sourced
materials Business tool used for strategic management.
Chain of primary activities with support activities (HR, management, procurement) used to increase effectiveness. What it is? To maintain a competitive advantage
Develop low cost strategies
Increase profit margins
Increase value to customer Purpose of the VC Tool: Operations Outbound Logistics Marketing
+ Sales Services Warehousing
Order Fulfillment
Distribution Manufacturing
Processing Advertising
Inventory Control Customer Support
Repair Services SUPPORT ACTIVITIES PROCUREMENT The function of purchasing the raw materials and other inputs used in the value-creating activities . TECHNOLOGY DEVELOPMENT It includes:
research and development
process automation
other technology development to support the value chain activities HUMAN RESOURCE MANAGEMENT Recruiting
Compensation of employees. FIRM INFRASTRUCTURE Includes activities such as:
Quality management THANK YOU WHAT MICHAEL PORTER SAID ?? The value chain is a series of activities a product/service must pass through until it serves its final purpose of solving a customer need. In each phase of the value chain the product/service gains some value. If a phase is malfunctioning the chain will break down and the mission of generating value for the customer will not be accomplished.
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