Week 3: Value Chain Analysis

Question 1

Value Chain Analysis definition

Answer 1

“inside-out” perspective:
looks at core activities of a single business firm internally, tries to find revenues and values there.
For businesses with multiple divisions value chain becomes too complicated

Developed my Michael Porter- explore synergetic and dissynergetic linkages across all activities

Question 2

Bottom part in value chain

Answer 2

Primary activities:
*Inbound logistics
secure timely delivery of high quality inputs
*Operations
operations to execute high quality standards an efficiency, to create synergy.
*Outbound logistics
need to deliver on time, securely, against low costs
*Marketing & Sales
activities to ensure high demand for company’s products/services
*Services
good service to improve customer satisfaction and resolve issues fast.

Question 3

Upper part in value chain

Answer 3

Support activities- needed to engage in primary activities
*Firm infrastructure
provide simulating info and physical work context for employees to thrive and excel
*HR management
recruitment and retention to have high quality workforce
*Technology development
keep company’s product portfolio in line with changing demands
*Procurement
unlocks value contained in suppliers by making sure that their service is reliable, inputs are high quality.

Question 4

3 main things value chain analysis can be used for

Answer 4

To identify:
1. Competitive advantages
To find:
2. Operational bottlenecks
To the source of:
3. Social costs

Every task in the activity system is responsible for the firm’s margins and inside activities.