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Business

planning

Business Plan!

The Nuts and Bolts

How it

Works

Key

Partners

Who Will Help You?

Worldwide Success

Market

Share

2.

4.

Primary Activities

3.

1.

Inbound logistics-Reduces damage,offer high quality products

Operations-Flexibility,variety,appearance,pre-mature failure,quick response,low defect rate and conformance to technicality.

Outbound logistics-Effective handling,timely delivery,effective processing,flexible deliveries

Ford can individually analyze the primary activities from all aspects and create differentiation basis by identifying the following sources:

Marketing and Sales-Relation(Suppliers,customers),Brand awareness,Wider sales coverage,coordination (product, research,market department)

Services-superiority,assistance and maintenance

Connecting

Contact

Info

2.

4.

Secondary Activities

3.

1.

Secondary activities

Firm Infrastructure

Technology Development

New product ,Innovation integration,parented technology.

Extensive data base development ,Deeper customer insights,

Ford can also analyze the secondary value chain activities to set differentiation basis:

Human Resource development

Procurement

Rewards for creativity and maximizing productivity,personnel training

Reliable transportation,procure high quality materials and replacement parts.

2.

4.

Value & Importance of Cost Drivers

3.

1.

Cost drivers of Ford Value Chain Analysis

Values:

  • State of Art Inventory ($ 524 M)
  • Design & Engg. ($ 164 M)
  • CRM ($ 230 M)
  • Marketing segments ($ 384 M)

Drivers:

• Organizational policies

• Integration

• Timing

• Economies of scale

• Linkages

• Interrelationships

• Capacity utilization

• Learning and Spillover

2.

4.

Link between Activities

3.

1.

GOALS

Goal 1

Goal 2

I

Goal 3

Link between activities:

Activities of Logistics

Technological Development

Marketing & Sales

Ford Mission

II

III

Adavantages

Benefits of value chain analysis

Competitive Advantages through Value Chain Analysis

Ford use the operations, marketing and other relevant value chain activities to avail the cost advantages or use the human resource, technology, infrastructure, service or other relevant activities to set the strong differentiation basis.

grouped into two types- cost and differentiation

Company Differentiation Advantage

• Forward integration or backward integration to exercise better control over inputs

• Utilization of new channels of distribution

• Implementation of innovative process technologies.

Cost Advantage-

  • maximize the in-bound and out-bound transportation processes.
  • reduce marketing costs and offer the product at an affordable cost

Challenges associated with Value Chain Analysis of Ford

Challenges associated with value analysis

• The company may lose its vision and overall strategy by dividing operations into different activities.

• Dividing the operations into primary and support activities may not be separable due to increased complexity.

• The division process can be time consuming and finding the required information can also be difficult.

• Effective value chain implementation does not only require familiarity but detailed expertise.

• Ford may find it difficult to get required information if its Business Information System is not structured accordingly.

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