porters value chain
TRANSCRIPT
Presented By-
Sumit Kaushik 14020541056Tanvi Godbole 14020541057Ula Javed 14020541058Utkarsh Nalgundwar 14020541059Vedant Singh 14020541060Tarun Kanade 14020541061Nagendra Battala 14020541064
Porter’s Value Chain
• A value chain is a chain of activities that a firm operating in a specific industry performs inorder to deliver a valuable product or service for the market.
• Value-chain analysis looks at every step a business goes through, from raw materials to theeventual end-user. The goal is to deliver maximum value for the least possible total cost.
• The way in which value chain activities are performed determines costs and affects profits,so this tool can help you understand the sources of value for your organization.
PORTER’S VALUE CHAIN
VALUE CHAIN MODEL(FISH BONE DIAGRAM)
PRIMARY ACTIVITIES
• INBOUND LOGISTICS - concerned with receiving, storing, distributing inputs.
(e.g. handling of raw materials, warehousing, inventory control)
• OPERATIONS - comprise the transformation of the inputs into the final product form (e.g.
production, assembly, and packaging)
• OUTBOUND LOGISTICS -involve the collecting, storing, and distributing the product to
the buyers . (e.g. processing of orders, warehousing of finished goods, and delivery)
PRIMARY ACTIVITIES
• MARKETING AND SALES -identification of customer needs and generation ofsales.(e.g. advertising, promotion, distribution)
• SERVICE -involves how to maintain the value of the product after it is purchased.(e.g. installation, repair, maintenance, and training)
PRIMARY ACTIVITIES
SUPPORT ACTIVITIES
• FIRM INFRASTRUCTURE- The activities such as Organization structure, control system, company cultureare categorized under firm infrastructure.
• HUMAN RESOURCE MANAGEMENT- Involved in recruiting, hiring, training, development andcompensation.
• TECHNOLOGY DEVELOPMENT- These activities are intended to improve the product and the process, canoccur in many parts of the firm.
• PROCUREMENT- Concerned with the tasks of purchasing inputs such as raw materials, equipment, and evenlabour.
SUPPORT ACTIVITIES
• The value chain is a tool for systematically examining the activities of a firm and how they interactwith one another and affect each other’s cost and performance.
• Profits depends on how well firms execute these activities in the value chain
• A firm gains a competitive advantage by performing these activities better or at lower cost thancompetitors.
• Competitive advantage is gained through cost advantage & through product differentiation.
Why this matters? (Utility)
Anand Milk Union Limited
Type- Cooperative
Industry- Dairy/FMCG
Founded- 1946 A.D.
Headquarters- Anand ,Gujrat.
Revenue- US $ 3.1 billion.
Market share –Butter : 85%
Choclates : <10%
Products Offered
Logistics (Inbound)
Procurement of 13 million lts of milk per day.
Cold storage Network-
Chillers in proximity of villages.
Chilled trucks
insulated rail tankers.
24 cold storage in various locations across the country developed by Amul itself.
Operations
Quality check –Amul has it’sown quality checkmechanisms – QualityAssurance Laboratory.
Tetra Pak Group – forpackaging. Milk packagedhere need not be boiled andis ready for consumption.
Logistics (Outbound)
Distribution channel ensures that product reaches everynook and corner of the country.
Creation of cold chain to transport these products andstore it closest to the market with the required coolinginfrastructure.
Amul products are available in over 8,00,000 retailoutlets across India through its network of over 5,000distributors.
Marketing
Gujrat Cooperative Milk Marketing Federation
Partners with Ogilvy and Mather for thoughtfuladvertisements.
Amul has one of the longest running add campaign in theworld with Amul girl as their mascot.
Advertising and Sales Promotions
To be simple, fresh and innovative.
Emotion based adds on current affairs.
Services
Census of all retail outlets (over 5 lacs) to evaluate customerperceptions and distribution efficacy of their network.
Amul relief trust.
Customer feedback for quality management.
Procurement
Milk Collection (Total - 2013-14)-4.79 billion
litres
Milk collection (Daily Average 2013-14)-
13.18 million litres
Source-2.79 million farmers
Hierarchical system
Gujrat -biggest sourcing point of milk
Other states contributing towards Amul : Maharashtra, Karnataka, AP, MP, Rajasthan, Orissa, West Bengal ,J&K and Punjab
Technology Development
AMCUS –automatic milk collection system units to automate milk production logistics and to capture member information ,fat content , volume collected and amount payable to each member electronically
Application and utilization of GIS (Geographic Information System)
DISK (dairy info system kiosk) provided by IIM Ahmedabad to facilitate data analysis and decision support in improving milkcollection
TCS was hired by Amul for EIAS – enterprise wise integrated Application systems for implementation for ERP
Amul also connected its zonal offices, regional offices and dairies through VSATs.
Amul actively pursues developments in embryo transfer and cattle breeding in order to improve cattle quality and increasesin milk yields.
HR Management
All policies have been designed keeping the betterment offarmers in mind
Training for transformational leadership.
Training for farmers emphasizing on need of good health care ofcattle
Medical Assistance Scheme to employees (full fledgeddispensaries at factories),transport facility, meals at subsidizedrates
HRIS – Human Resource Information System.
Firm Infrastructure
Quality Management
TQM Model (Total Quality Management) - improvement inquality of milk in term of acidity and sour milk
Milk Union records show 2% reduction in the amount of the sourmilk received from the union
Improved microbiological quality of upcoming raw milk to givebetter shelf life to the product
Regular meetings to discuss various quality concerns.
Financial Management
Weekly forecast of funds in which requirement of each department ismentioned.
Driven primarily by its desire to be self reliant and thus depend oninternally generated resources for funding its growth anddevelopment.
Amul’s financial strategy may thus characterized by two elements
a. Retention of surplus to fund growth and development
b. Limited/no credit i.e all transactions are essentially cash only
General Overview Type : Public Industry type : Automotive Founded : 1945 A.D. Founder : Jamsetji Tata Headquarter : Mumbai, Maharashtra, India Area Served : Worldwide Revenue : USD $ 38.6 billion (FY 2013-14) Tata Motors entered the passenger vehicle market in 1991 with the launch of the
Tata Sierra, becoming the first Indian manufacturer to achieve the capability ofdeveloping a competitive indigenous automobile
In 1998, Tata launched the first fully indigenous Indian passenger car, the Indica, andin 2008 launched the Tata Nano, the world's most affordable car.
Inbound
Logistics
Operations Marketing ServiceOutbound
Logistics
Suppliers , Contractors
Strategic Alliances
Transporters, Convoy Drivers Association
Dealer Network, Marketing Research Firms, Vehicle
Financing
Regional Warehouses, Dealer Workshops, Distributors, TASS
Value Chain & Value System
SAP , VCM
SAP , CRM - DMS
Supported By
Multi – Location facilitiesStrong leadership –under the aegis of Tata SonsBest in class prototype building facilitiesTechnology – SAPLarge product portfolio
Vast pool of technically competent engineers Focus on development Technical Training Center’s, Alliance with technical Institutes
Focus on development of managerial capabilities –MTC’s , TMTC, executive
Approximately 2% of theannual profits of thecompany invested inresearch anddevelopment.
Knowledge portal – helpsemployees keep abreastwith the latesttechnologies.
Extensive prototypebuilding and testingfacilities.
Global Sourcing Team –China , a key destinationfor sourcing essentialitems like tires, powersteering units etc.
Long term relationshipswith a stable and loyalpool of suppliers
Group resources – TataSteel and TataInternational
Industry: American multinational corporation specializing in Internet Service and Application Service
Provider
Google was founded by Larry Page and Sergey Brin
Revenue : US$ 66 billion
Headquarters : Googleplex, Mountain View, California, U.S
Major Sectors:-
- Advertising
- Search Engine
- Cloud Computing
Primary Revenue Source: Advertising (97%)
InterfaceOperating
SystemBrowser
Internet
AccessWebsites Ads Ad
TechnologiesAdvertiser
Relationships
Offerings
Nexus
Chrome bookAndroid
Chrome OS
Chrome
Fiber
Search
YouTube
Maps
Finance
Google+
Drive
AdSense
Ad Words
Banner Ads
Ad Mob
Double
Click
On2 Tech
Aardvark
Analytics
Firm Infrastructure
Human Resource
Technology Development
Procurement
Clear Vision and Strong Industry Focus,Good Financing, Legal Support
Good R&D , Product Development and Innovations , Server Technology, Compression Technology, faster response Time
Servers based in all over the globe
From servers all over the globe, Google Database, Satellite images
InboundLogistics
Multiskilled people, Ownership and Pride, Global Talent
Web,
Mobile,
Desktop
Indexing,Compression,Storage,Retrieval,Updation
Good
Brand
Value
RelevantWeb pageto user
Operations OutboundLogistics
MarketingAnd
Sales
Services
Pri
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