value chain ppt
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VALUE CHAIN
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The regard that something
is held to deserve; theimportance, worth, or
usefulness of something.
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A high-level model of how businessesreceive raw materials as input, add
value to the raw materials throughvarious processes, and sell finishedproducts to customers.
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MICH EL PORTER V LUE CH IN
"The idea of the value chain is based on theprocess view of organizations, the idea ofseeing a manufacturing (or service) organizationas a system, made up of subsystems each with
inputs, transformation processes and outputs.Inputs, transformation processes, and outputsinvolve the acquisition and consumption ofresources - money, labour, materials,
equipment, buildings, land, administration andmanagement. How value chain activities arecarried out determines costs and affects profits."
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PRIMARY ACTIVITIES
According to Porter (1985), Inbound Logistics- involve relationships with suppliers
and include all the activities required to receive, store, anddisseminate inputs.
Operations- are all the activities required to transforminputs into outputs (products and services).
Outbound Logistics- include all the activities required tocollect, store, and distribute the output.
Marketing and Sales- activities inform buyers aboutproducts and services, induce buyers to purchase them, andfacilitate their purchase.
Service- includes all the activities required to keep theproduct or service working effectively for the buyer after it issold and delivered.
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SECONDARY ACTIVITIES
Secondary activities are: Procurement- is the acquisition of inputs, or resources, for
the firm.
Human Resource management- consists of all activitiesinvolved in recruiting, hiring, training, developing,compensating and (if necessary) dismissing or laying offpersonnel.
Technological Development- pertains to the equipment,hardware, software, procedures and technical knowledgebrought to bear in the firm's transformation of inputs into
outputs. Infrastructure- serves the company's needs and ties its
various parts together, it consists of functions ordepartments such as accounting, legal, finance, planning,public affairs, government relations, quality assurance and
general management.
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Firm Infrastructure (General Management)
Human Resource Management
Technology Development
Procurement
InboundLogistics
Ops. OutboundLogistics
Sales &Marketing
Service andSupport
PRIMARY ACTIVITIES
SUPPORTACTIVITIES
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DI MOND INDUSTRY V LUE
CH IN MODEL
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TEXTILE INDUSTRY- VALUE CHAIN
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