Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
171 views4 pages

Value Chain: Primary Activity Description

Value chain analysis describes the primary and secondary activities within a business that create value, from inbound logistics to outbound logistics, marketing and sales, and service. It relates these activities to the competitive strength of the business based on cost leadership or differentiation. Value can also be described as the quality of service provided, such as access, communication, competence, courtesy, credibility, reliability, responsiveness, security, tangibility, and understanding customers.

Uploaded by

Hemant G Bhati
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
171 views4 pages

Value Chain: Primary Activity Description

Value chain analysis describes the primary and secondary activities within a business that create value, from inbound logistics to outbound logistics, marketing and sales, and service. It relates these activities to the competitive strength of the business based on cost leadership or differentiation. Value can also be described as the quality of service provided, such as access, communication, competence, courtesy, credibility, reliability, responsiveness, security, tangibility, and understanding customers.

Uploaded by

Hemant G Bhati
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Value Chain

Value Chain Analysis describes the activities that take place in a business and relates them to
an analysis of the competitive strength of the business.

Primary Activity Description


Inbound logistics All those activities concerned with receiving and storing externally sourced
materials
Operations The manufacture of products and services - the way in which resource inputs
(e.g. materials) are converted to outputs (e.g. products)
Outbound logistics All those activities associated with getting finished goods and services to buyer

Marketing and sales Essentially an information activity - informing buyers and consumers about
products and services (benefits, use, price etc.)
Secondary Activity Description
Procurement This concerns how resources are acquired for a business
(e.g. sourcing and negotiating with materials suppliers).
Human Resource Those activities concerned with recruiting, developing, motivating and
Management rewarding the workforce of a business.

Technology Activities concerned with managing information processing and the


Development development and protection of "knowledge" in a business.
Infrastructure Concerned with a wide range of support systems and functions such as finance
planning, quality control and general senior management.
Service All those activities associated with maintaining product performance after the
product has been sold.

Value Chain Analysis (Value Stream Mapping) is a way of describing business


Value Chain is based on Porter’s Generic Strategy which focuses on
• Cost Leadership
• Differentiation
Value can also be described as Service Quality

Service can be in for of any of the followings:


• Access
• Communication
• Competence
• Courtesy
• Credibility
• Reliability
• Responsiveness
• Security
• Tangibility
• Understanding/Knowing the client.

SERVQUAL (Service Quality) – The Future

Service Quality GAP Model – (Developed by Parasuraman, Zeithalm & Berry)


This aims at identifying:
Knowledge Gap
Service Gap

The GAP Model is basically used for improving Customer Service.


Customer Service v/s Customer Care
Customer Service works at a operational/functional level.
Customer Care works at a Strategic Level and much wider in concept.

Customer Care Definition:


Continually planning identified levels of service in order to achieve
pre-determined goals & to provide satisfaction on a COST EFFECTIVE manner.
– Terry Johnson.
Evaluation of Changes and Plan for Action:
Selection of appropriate timing/sequence of action/improvements
Prioritizing the sequence (immediate-short term-long term)
Integrate this plan into strategic plan of the organisation.
Value Chain Analysis (Value Stream Mapping)
• How to maximize Customer Value
• How to maximize Profits
• Value Chain Analysis Focuses on RAW INPUTS (goods/services)
• Raw Materials
• Time
• Systems
• Equipments
• HR
• Knowledge
These inputs are then converted into Value Services based on priority for Customers, which are
internal as well as external ones.

Benefits of Value Chain:


• Pricing
• Repeat Purchases
• Customer Loyalty
• “Life time value” concept
• Provision for excellent customer service
• Superior products
• Overall Job satisfaction
• Builds Team Spirit and Bonding
• Rewards for everyone in form of Profits/Competitive Adv., Moral boosting etc.

You might also like