Value Chain Analysis

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Value Chain Analysis

Secondary Activities(Dell)

Infrastructure

Reacting to problems by change in senior management

Concerned with a wide range of support systems and functionssuch as finance, planning, quality control and general senior management

Technology Development

Lagging behind in technology research and development

Activities concerned with managing information processing and the development and protection of "knowledge" in a business

Human Resource Management

Hosted Payroll

Potential for spinning it off as a seperate business unit

Those activities concerned with recruiting, developing, motivating and rewarding the workforce of a business

Procurement

Lowering the bargaining power of intel and microsoft

sourcing and negotiating with materials suppliers

Primary Activities(Dell)

Service

If something goes wrong then PC has to be returned in the post

People don't like offshore support, usually stressed when they call and this adds to their stress

Service is Poor

All those activities associated with maintaining product performance after the product has been sold

Marketing and Sales

Improve as a Lifestyle brand

What about people who dont own computers?

China / Credit Cards / Shops essential

Essentially an information activity - informing buyers and consumers about products and services (benefits, use, price etc.)

Outbound Logistics

Evening delivery

Room for improvement / instant gratification

The monitor example

Close to customers

All those activities associated with getting finished goods and services to buyers

Operations

Customisation options

Build-to-Order

The manufacture of products and services - the way in which resourceinputs are converted to outputs.

Inbound Logistics

Close to suppliers

Just-In-Time ordering

All those activities concerned with receiving and storing externally sourced materials

Created by Michael Porter

Used for

Identify where & when IS/IT can be used to improve a business

Efficency

Reducing Cost

Effectiveness

Adding Value