Inc Value Chain Analysis Essay

For each primary activity, sub-activities can be determined that create a specific value for an organization.

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The Service Profit Chain Model is an alternative model, specific designed for service management and organizational growth.

Support activities within the Porter’s Value Chain Analysis assist the primary activities and they form the basis of any organization.

Primary activities have an immediate effect on the production, maintenance, sales and support of the products or services to be supplied.

These activities consist of the following elements: These are all processes that are involved in the receiving, storing, and internal distribution of the raw materials or basic ingredients of a product or service.

These activities relate to the development of the products and services of the organization, both internally and externally.

Examples are IT, technological innovations and improvements and the development of new products based on new technologies.This concerns the support activities within the organization that enable the organization to maintain its daily operations.Line management, administrative handling, financial management are examples of activities that create value for the organization.This will also have to be done for the other support activities.This is a crucial and time-consuming step because this is about finding the links between the added value you have identified.The guiding principles are setting oneself apart from the competition and creating advantages for the customer.This includes all activities that maintain the value of the products or service to customers as soon as a relationship has developed based on the procurement of services and products.Consequently, it (Value Chain Analysis) makes clear where the sources of value and loss amounts can be found in the organization.Porter’s Value Chain Analysis consists of a number of activities, namely primary activities and support activities.Porter’s Value Chain Analysis: There are four basic steps that have to be followed if you wish to use the Value Chain as an analysis model.By following these basic steps the organization can be analyzed using the Value Chain.


Comments Inc Value Chain Analysis Essay

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