Value Chain

Moving a Slow-Clockspeed Business into the Fast Lane: Strategy Lessons from Value Chain Redesign in the Automotive Industry Introduction When one thinks about case studies of innovative value chain management, it is common and useful to look at the exploits fast-clockspeed industries and organizations - what are sometimes called the "fruit flies" of our economy. The dynamic evolution of these organizations, the upstart new ventures or the aggressive electronics giants, can teach a great deal about industry and value chain dynamics.1 With rapidly shifting supply chains and high-clockspeed technologies, these firms often provide useful lessons for responding to cutting-edge strategic challenges. However, these "new economy" players are not the only ones facing dramatic and sweeping changes throughout their value chains. Stimulated by the creation of a global integrated organization for powertrain (engine, transmission, and controls) engineering and manufacturing at General Motors under the leadership of Arvin Mueller, a team of managers and analysts was created to perform a sweeping analysis of value chain strategy for the General Motors Powertrain organization (GMPT). A key finding: Insights into the nature of value chain design and corporate strategy -- for both fast- and slow- clockspeed firms -- can still arise from the midst of a traditional "old economy" firm. To

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  • Level: University Degree
  • Subject: Business and Administrative studies
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value chain

http://www.marketingteacher.com/Lessons/lesson_value_chain.htm http://www.ukeducation.org.uk/Documentation.asp?key=1340 http://www.12manage.com/methods_porter_value_chain.html http://tutor2u.net/business/strategy/value_chain_analysis.htm www.andrew.cmu.edu/course/70-381/chap18.ppt Answer to d Value chain analysis Porter developed the value chain analysis to realize operational activities which is closely connected with the activities of cost behaviour. Value chain defined as integrated series of organisation, resources, and information involved in production to deliver a value to customers at end . Generally it explain the whole process of a product or service from being conceptualization, supply it to consumers and disposal after final use .A firm or an organization who operates value chain efficiently also cost effectively than it rivals gain competitive advantage. Primary and secondary stages are involved in value chain analysis. Inbound logistic In this activities relationship are created with supplier by receiving goods, storing them till they are required for production or supply, and performing inventory in due time.. Transportation of goods is performed under this activities. For example product are stored in warehouse and often transported to retailer by manufacturer. Operation operation activities comes in function after Inbound logistic. which mostly

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  • Level: University Degree
  • Subject: Business and Administrative studies
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A value chain analysis of e-business.

A VALUE CHAIN ANALYSIS OF E-BUSINESS Having looked at the potential impact of e-business on an organisation's choices as to which services and products it will offer and to whom, now we can look at the broader implications for organisations. The model we shall use for this has been devised by Porter (1985) and depicts an organisation's key activities as being connected as a chain of value which is added by each link. This chain involves the activities which comprise the production or development of whatever the organisation provides for its customers - firstly, there is what the organisation needs to bring in (raw materials, information, and so on), then the key operations (such as manufacturing the product), then taking the product to the customers or point of sale, then the marketing and sales activity, and finally the service provided to the customer post-sales. In addition to this primary chain of value, there is a secondary cluster of support activities, such as HR, IT/systems, or purchasing. These enable the primary value chain to operate most effectively, though in themselves they are less directly connected to the details of the technical work. Primary activities Inbound and outbound logistics Probably, the physical movement of materials and products is less dramatically affected by e-business than some other parts of the value chain. However, there are some

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Dyson case study - Value chain, Resource Mapping and VRIO.

To: Dyson Date: 25.11.11 From: Sharif ) Dyson Limited is a domestic appliance manufacturing company headquartered in the UK. Their product range includes vacuum cleaners, washing machines and hand driers. The value chain describes the categories of activities within and around the organisation, which together create a product or service. Value chain divides the company's activities. Therefore, it is a chain of value adding activities, where value 'is measured by the amount that buyers are willing to pay for a product or service' (Porter and Millar, 1985). Dyson can cut down the cost dramatically by the effective management of information system. Information technology is a powerful and efficient tool to reduce the documenting cost and can help in easy accessibility of information in various sections of the organization. The following Diagram shows The Dyson's value chain. Diagram: Information resource effects on Dyson value chain (source: modified from Porter and Millar (1985) If we look at the case study of Dyson we could say that the value chain of the primary activities of Dyson is that it has got an outbound logistics as it distributes its products around 45 different countries which is concerned with the cyclone technology. The inbound logistics is where Dyson takes in the raw materials from his suppliers, so that they can rapidly meet

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  • Subject: Business and Administrative studies
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A value chain is a chain of activities for activities for a firm operating in a specific industry.

Value Chain The value chain also chain as value chain analysis is a concept from business management that was first described and populated by Michael Porter in 1985. A value chain is a chain of activities for activities for a firm operating in a specific industry. The chain of activities gives the products more added values then the sum of added values of all activities and also said that, value chain is an interrelated series of process that produce a service on product to the satisfaction of customer. The concept of value chain also focuses attention on the types of processes in the value chain. History of DELL: . Founded by Michael Dell in 1984 2. The single concept: Selling computer systems directly to customers 3. Designed and built the first computer system of its own design in 1985 4. Was one of the first computer companies to send a technician to homes to service personal computers in 1985 5. Introduced the 316LT, the company’s first notebook computer in 1989 6. Joined the top-five computer system makers worldwide in 1993 7. Earning appr. $1 million per day 7 months after the launch of dell.com in 1996 . Introduced E-Support, an online tool to provide technical support to customers in 1999 2. For the first time, Dell achieves No. 1 ranking in global market share in 2001 Activities of DELL: Primary Activities: Inbound logistics: . All those

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  • Level: AS and A Level
  • Subject: Business Studies
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Using SWOT, PEST, five forces and the Porters Value Chain, I will assess The McDonald Fast food Chain Organisation.

McDonalds Using SWOT, PEST, five forces and the Porters Value Chain, I will assess The McDonald Fast food Chain Organisation. The analysis is a way to take the temperature of the business and it's market place. It will prompt ideas for improvements to a way the challenges are met. With more than 30,000 restaurants in over 100 countries, 80 % of them franchisees.It feeds some 47 millions clients every day but still serves less than one percent of the world's population. How does it do this? It lies in it's strengths: McDonald's distributors are strategically to be accessible to the each restaurant and carry practically everything, from meat to lightbulbs. From the Classical menu to the new: Newproducts have been introduced as the tastes of the market. Alongside the Big Macs and Chicken McNuggets, there is a New Tastes Menu offering new McTreats. There's low-fat Chicken Salsa Flatbread, penne salad comes with 'Italian style chicken For the first time, I can order fresh fruit. The happy Meal Fruit Bag is 'equivalent to five-a-day recommended daily intake of fruit and vegetables', Outside the U.S. Examples include the popular Teriyaki Burger in Japan and vegetable Nuggets in India. Customers come to McDonald's for signature products they can't find anywhere else. In addition many families visit the restaurants because of their unique ability to put smiles on their children's

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  • Level: GCSE
  • Subject: Design & Technology
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WAL-MART and easyjet approach to CRM in the B2C value chain

PgDip/MSc OPERATIONS AND SERVICES MANAGEMENT MANAGING CUSTOMER REALTIONS COURSEWORK 1 - WAL-MART AND EASYJET APPROACH TO CRM IN THE B2C VALUE CHAIN Prepared by: George Gourlay Date: 12th November 2004 Executive Summary Customer service, not surprisingly, has been researched extensively: from the conceptual framework of service quality, to the positive and negative impacts of service quality, to the effect of favourable and unfavourable customer intentions on perceived quality. Superior service generates favourable behavioural intentions in customers, including increased future spending, acceptance of price premiums, "word of mouth" referrals, and, ultimately, customer retention (Zeithaml et al., 1996). Quality service builds customer faith in the organization, and "is essential for maintaining competitive advantage" (Berry, Parasuraman and Zeithaml, 1994) Longstanding, satisfied customers will generally continue, or often increase, purchasing, require less operational and customer service support, and be more willing to pay price premiums to remain with the company--all without incurring new customer acquisition costs (Pine II, Peppers, and Rogers, 1995) Weinstein and Johnson (1999) recommend that companies should spend "75% of its marketing budget on customer retention strategies" and to strengthen these relationships. CONTENTS PAGE . Introduction

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Globalization - Coffee & Value Chain. What is the likely value chain of a coffee shop? For example, how did the varieties of coffee beans get there? What is the likely effect of market globalization on coffee shops? Do technical advances play any role in

Imagine you are studying for your international business class at a local coffee shop. The manager spies your textbook and remarks, "I don't get all that foreign business stuff. I don't pay much attention to it. I'm a local guy running a small business. Thank goodness I don't have to worry about any of that." The manager's comments make you realize there is much more to business than just local concerns. What is the likely value chain of a coffee shop? For example, how did the varieties of coffee beans get there? What is the likely effect of market globalization on coffee shops? Do technical advances play any role in the shop's value chain? Does globalization imply any negative consequences for the worldwide coffee industry? Justify your answer. The coffee shop manager is naïve to think he is simply a local guy running a small business and that international business is somehow irrelevant, as it pertains to the growth or success of his business and the affects it has on others within the coffee value chain. Coffee is imported from various countries such as Brazil, Vietnam, Columbia, Indonesia, Mexico, India, Ethiopia, Guatemala, Honduras, and Peru. These countries happen to be the top ten green coffee producers of the world. http://en.wikipedia.org/wiki/Economics_of_coffee The two types of coffee plants most widely cultivated are grown in tropical and subtropical

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  • Level: International Baccalaureate
  • Subject: Business Studies
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Dell Inc. Dell used the direct sales and build-to-order model to develop an exceptional value chain that led to its renowned competitive advantage. The close relatioship with customers and suppliers was the main focus of the value chain.

MGTS 31103 Strategy and Management Adrian Vlad B00248777 Individual Assignment Professor Martin Conyon 2 November 2009 Dell Inc. Sir Brian Pitman, former CEO of Lloyds TSB used to tell his managers: "There is always a better strategy than the one you have; you just haven't thought of it yet" (Harvard Business Review, April 2003). As a result, he always encouraged them to come up with 3 or 4 different strategies. But when your name is Michael Dell, and your model is one of the best in the industry for several years, it is hard to think like Pitman. There are several key choices that Dell made in the 1990s, that made it the largest PC manufacturer in the world. One of the most important was to market directly to consumers. The Direct Model Approach, which Dell pioneered, gave it independency from distributors and retail channels. On one hand, this allowed Dell to drive down its costs and increase its profit margins and on the other, it allowed it to segment its customers into smaller and smaller groups and target those groups that were most profitable. One of these groups, for example, was the corporate clients group who enjoyed doing business directly with Dell. By cutting out the middlemen, Dell could customize their products to the needs of corporate clients quicker and more efficiently. In terms of Porter's generic strategy, Dell positioned itself somewhere

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Supply Chain

Running head: KUIPER LEDA SUPPLY CHAIN DEFENSE Kuiper Leda Supply Chain Defense Name University of Phoenix Kuiper Leda Supply Chain System Kuiper Leda is an electronic manufacturer focuses on Electronic Control Unit (ECU's) and its clients including automobile manufacturers and OEMs. The Electronic Control Unit is to control the fuel injection system, ignition timing, and speed control system (Wikepedia, 2008). The ECU consists of 8-bit microprocessors, random access memory (RAM), read only memory (ROM), and an input and output interface. The company also entered a new market of Radio Frequency Identification Device (RFID) an automatic identification method, relying on storing and remotely retrieving data by using devices or radio waves. Kuiper supply chain management has several issues on different levels of production such as resources, shop and capacity, and delivery of product. The first issue, Kuiper only works with smaller customers and has a limited daily capacity of ECUs and RFIDs. Even though the company encounters different issues the company has good reputation with its customers, and known for quality and delivery responsiveness. The second issue, Kuiper thrives harder to meet the repeat orders and relationship with supplier because the company has multiple competitors within the industry. Kuiper needs to focus more on producing large-scale capacity and

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  • Level: University Degree
  • Subject: Business and Administrative studies
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