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The Value Chain

The value chain is a tool for identifying ways to create more customer value. It consists of 9 types of activities, with the first 5 being primary activities: inbound logistics, operations, outbound logistics, marketing, and services. The remaining 4 are support activities: procurement, technology development, human resource management, and firm's infrastructure. Each activity is then defined in terms of its importance and considerations for managing that part of the value chain.

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Bilal Sarwar
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20 views

The Value Chain

The value chain is a tool for identifying ways to create more customer value. It consists of 9 types of activities, with the first 5 being primary activities: inbound logistics, operations, outbound logistics, marketing, and services. The remaining 4 are support activities: procurement, technology development, human resource management, and firm's infrastructure. Each activity is then defined in terms of its importance and considerations for managing that part of the value chain.

Uploaded by

Bilal Sarwar
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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The value chain

Definition:
It is a tool for identifing ways to create more customer value.

There are 9 types of activities:.


1st five activities are primery activities:
1)
2)
3)
4)
5)

Inbound logistics
Outbound logistics
Operations
Marketing
Services

Remaning 4 activities are support activities:


6)
7)
8)
9)

Precurement
Techonology development
Human resource management
Firms infrastructure

Express the activities:


1) Inbound logistics:

Importance of rawmaterial
Choosing the best supplier
Relationship with suppliers
Raw materials quality
Which path to choose for getting supplies

Decision about the supply chain of the company


Methods of directing product to the customer
Decision about the path ways

2) Outbound logistics:

3) Operations:

Production method
Production procrdure
Use of raw material
Decision about plant & machinery
Product features
Product quality

Product packeging

Income selling
Communication method
Promotional mix
Integrated marketing communication tools
( ads, sales promotion, personal selling, publicity)

4) Marketing:

5) Services:

Pre-sale services
Post-sale services

Regarding need of the company


Regarding need of the product
Research and development
Advertisment development

Moving towards latest technology


Innovation
PEST analysis
Hiring of creative employees

Recruitment
Selection
Orientation
Training and development
Performance management
Performance evaluation
Performance apprasial
Compensation

Chain of command

6) Precurement:

7) Techonology development:

8) Human resource management:

9) Firms infrastructure:

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