F1 session 3

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F1 session 3

Postby anchit.middha » Tue Aug 30, 2016 9:48 am

I have not understood Porter's value chain... :?: :?:

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Re: F1 session 3

Postby edupristine » Mon Sep 12, 2016 10:58 am

As we know that most organisations are engaged in a number of activities in the process of converting inputs into outputs. Value chain model of Micheal Porter helps to analyze specific activities through which firms or entities can create value and competitive advantage. It involves many operations that transform the inputs into the final product and involves primary and secondary activities.

According to Porter, the following are the Primary Activities:

1.Inbound Logistics - It includes relationships with suppliers and include all the activities required to receive, store, and disseminate inputs.
2.Operations - All the activities required to transform inputs into outputs
3.Outbound Logistics - It includes all the activities required to collect, store, and distribute the output.
4.Marketing and Sales - The activities associated with getting buyers to purchase the product including channel selection, advertising, promotion, selling,pricing,retail management etc.
5.Service -The activities that maintain and enhance the product's value including customer support, repair services, upgrading etc.

The following are the Secondary activities:

1.Procurement is the acquisition of inputs, or resources, for the firm.
2.Human Resource Management consists of all activities involved in recruiting, hiring, training, developing, compensating and (if necessary) dismissing or laying off personnel.
3.Technological Development pertains to the equipment, hardware, software, procedures and technical knowledge brought to bear in the firm's transformation of inputs into outputs.
4.Infrastructure serves the company's needs and ties its various parts together, it consists of functions or departments such as accounting, legal, finance, planning, public affairs, government relations, quality assurance and general management.

I hope the above answers your query. Please let us know in case of any specific doubts on the same if any.

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