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Value Chain Analysis

Essay by   •  July 31, 2010  •  518 Words (3 Pages)  •  3,502 Views

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The primary activities (Porter, 1985) of the company include the following:

* Inbound logistics

These are the activities concerned with receiving the materials from suppliers, storing these externally sourced materials, and handling them within the firm.

Here goods are received from a company's suppliers. They are stored until they are needed on the production/assembly line. Goods are moved around the organisation.

~ Fresh fruit and vegetables are delivered and prepared every day.

* Operations

These are the activities related to the production of products and services. This area can be split into more departments in certain companies. For example, the operations in case of a hotel would include reception, room service etc.

~All golf course fairways are trimmed and watered daily.

* Outbound logistics

These are all the activities concerned with distributing the final product and/or service to the customers. For example, in case of a hotel this activity would entail the ways of bringing customers to the hotel.

~ Limousines are available to take guests to airports as they finish their stay.

* Marketing and sales:

This functional area essentially analyses the needs and wants of customers and is responsible for creating awareness among the target audience of the company about the firm's products and services. Companies make use of marketing communications tools like advertising, sales promotions etc. to attract customers to their products.

~ Fen Side is promoted through magazines targeted at the weathly and influential.


There is often a need to provide services like pre-installation or after-sales service before or after the sale of the product or service.

* ~ The whole experience is based upon high quality, professional service at every stage.

Support activities

The support activities of a company include the following:


This function is responsible for purchasing the materials that are necessary for the company's operations. An efficient procurement department should be able to obtain the highest quality goods at the lowest prices

~ Fen Side has a series of contracts with suppliers of meat and fish.



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