The value chain Flashcards
What are the four cost drivers (Support activities)?
Firm infrastructure
Human resource management
Technology development
Procurement
What are the five value drivers (Primary activities)?
Inbound Logistics
Operations
Outbound Logistics
Marketing and Sales
Service
What are value drivers (primary activities)?
Various activities undertaken by a firm to produce goods and services.
What are cost drivers (Support activities)?
Elements of business activity necessary to enable the firm to function most effectively.
Inbound logistics
(Primary activity) Receiving, handling and storing inputs to the production system
Operations
(Primary activity) Converting resource inputs, including human effort, into a final product or service.
Outbound logistics
(Primary activity) Storing the product and its distribution to customers.
Marketing and sales
(Primary activity) Informing customers about the product, persuading them to buy it, and enabling them to do so.
Procurement
(Secondary activity) Acquire the resources input to the primary activities.
Technology development
(Secondary activity) Product design, improving processes and/or resource utilisation.
Human resource management
(Secondary activity) Recruiting, training, developing and rewarding people.
Firm infrastructure.
(Secondary activity) Organisational structure is vital to a firm’s strategic capability.
