The Value is the total amount (i.e.
Total Revenue) that buyers are willing to pay for a firm’s products.
The value
chain is concentrating on the activities starting with raw materials
till the conversion into final goods or services.
A)Primary
activities
a. Inbound logistics
- concerned with receiving, storing,
distributing inputs (e.g. Handling of raw materials, warehousing, inventory
control)
b. Operations
- comprise the transformation of the inputs
into the final product form (e.g. production, assembly, and packaging)
c. Outbound logistics
-involve the collecting, storing, and distributing
the product to the buyers (e.g. Processing of orders, warehousing of finished goods, and
delivery)
d. Marketing and sales
-identification of customer needs and
generation of sales.(e.g. Advertising, promotion, distribution)
e. Service
-involves how to maintain the value of the
product after it is purchased.(e.g. Installation, repair, maintenance, and training)
B)Supporting
activities
a. Firm infrastructure
the
activities such as organization structure, control system, company culture are
categorized under firm infrastructure.
b. Human resource management
involved in recruiting, hiring, training,
development and compensation.
c. Technology development
these activities are intended to improve the
product and the process, can occur in many parts of the firm.
d. Procurement concerned
with the tasks of purchasing inputs such as raw materials, equipment, and even labor.
