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The total revenue that the consumers are ready to pay for products is called value. In order to accomplish primary objective of profit maximization, businesses perform a set of consequent activities which is called as value chain. Value chain analysis is a decision- control tool. This tool was developed by Dr. Michael Porter (Harvard Business School) in the year 1985. It is used as a strategic analytical tool that is used to highlight the situations where values can be created by the businesses for their customers. Value chain analysis can be applied to both manufacturing business as well as service firms. Value Chain Analysis Assignment Help highlights all the topics regarding value chain analysis.
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Different Types, Advantages, Disadvantages of Value Chain Analysis
Values can be generated by activities. The two activities explained in Value Chain Analysis Assignment Help are
• Primary activities – The different types of primary activities are-
Inbound Logistics- In this process, raw materials are received and stored for further manufacturing processes.
Operations- This refers to the process of converting raw materials into processed goods.
Outbound logistics- this involves warehousing of finished goods and delivery.
Marketing and sales- this involves the communication of marketing message to the targeted customers.
Service- it involves the assistance provided to the customers for product maintenance.
• Support activities- the different types of support activities are
Infrastructure- It constitutes organisational structure, committees, departments and organisational culture.
Human Resource Management- It includes activities like recruitment, training and development, hiring, compensation, etc.
Technology Development- technology is used to improve the product and processes.
Procurement- it involves tasks like purchasing raw materials, labour, equipment, etc.
The advantages of value chain analysis given in Value Chain Analysis Assignment Help are
• It is a very flexible strategic tool.
• Tactical, organisational and strategic issues can be detected by the help of value chain analysis.
• The strategic framework obtained by value chain analysis can be applied to small as well as large business industries.
• It plays a major role in identifying potential sources of competitive advantage.
Along with advantages this framework is not free from limitations. Some limitations of value chain analysis given in Value Chain Analysis Assignment Help are
• In real life achieving a clear separation of different primary and support activities might increase the complexity level of business operations.
• Sometimes it is quite difficult to obtain all the information required to conduct value chain analysis.
• As this application requires comprehensive analysis of all operations, it could be time-consuming.
• Value chain analysis is familiar to many people but only few are expert in its use.
Features of Value Chain Analysis Assignment Help are
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• Process of Understanding value chain analysis to be made simpler.
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