Question

Define in your own words, and from a business perspective, what the Value Chain Process (Porter´s Value Chain) is in a company. You need to explain the entire process that actually happens with an example.

Answer 1

ABOUT VALUE CHAIN ---

The value chain is the chain of activity or the activity by the business to deliver a valuable good . Its the process of performing the activities in the business from the time of production till the delivery of the valuable good to the customers . They use to perform the activities as per the level and the stage for the requirement of the process .

The chain value process is having the levels of activities within it i.e. ---

1 - PRIMARY ACTIVITIES

2 - SUPPORT ACTIVITIES

The primary activities contains all the activities related to the inbound process , operations , outbound process , sales and marketing and ultimately the delivery or the process of providing the service to the customers . Whereas , the support activities use to include all the activities related to the starting up of a business , that is which kind of firm infrastructure they want , what they want to produce with the use of which kind of upgraded technology , they way they want there business and there employees to be managed and so on .

ILLUSTRATING VALUE CHAIN PROCESS ---

COMPANY TYPE -- " CLOTHING  "

As per the selected company firstly we have to perform the primary activities , as they have the aim of selling CLOTHS to there customers in reasonable rates .

INBOUND LOGISTICS -- The inbound logistics contains the process of appointing the manufacturer and the and the clothing to be manufacture in the business . They will first decide the types of cloths and the designs they want that is trending the market . They will appoint employees for the manufacturing so in the company itself so that the process will good as per there quality check and will customize the products as per the market demands .

OPERATIONS -- In the operations processing in the business they will decide that in which places they will open there store for the customer so that they can easily get reach to the store anywhere . So , they will open the stores in different places where the demand for there clothes are increasing and the places where they have the vision for the increase in the demands .

OUTBOUND LOGISTICS -- Outbound logistics is the process in which they will decide that they will do the business involving the intermediaries or by delivering the products them self and selling it by there own . If the business will increase to the height then they have the option to include little intermediaries for there faster services .

MARKETING AND SALES -- In market sale they will decide that how much they have to invest in the marketing area and in the advertisements . They can call for the demonstration of the products quality in the market so that the customers will get attracted towards it .

SERVICES -- In the process of the services providing they can go for the discount in the price of the products and making the availability of the unstitched clothes or only the cloth pieces in the market for the customer to stitching in as per there need or giving the offer to stitching the cloths as per there preferences .

THERE SUPPORT SERVICES ---

INFRASTRUCTURE -- In the business this is on of the main decision to be taken by the owner for the good growth of the business . If the infrastructure and the location of it will be good there will be more sale and the development of the business .

TECHNOLOGY DEVELOPMENT -- In the business the technology also plays a great roll , if there will be good and upgraded technology is used then the process of production will be effective and efficient . It will be less price consuming and less time consuming .

HUMAN RESOURCE MANAGEMENT -- If the human resource in the business will not get managed in the better way than the environment of the business will get spoiled and there will be no good relationship between the senior and the juniors . Due to the uneven environment in the business the employees get engaged in all the aimless activities and the aim will not get fulfilled on time and lack of efforts in that .

BOTTOM LINE -- In this the company will decide that how much value they much add to each step that is being performed for the better results . By adding needed amount of value to each of the level of value chain process that will lead them to the maximization of there profit by the passage of time .