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Value Chain Analysis
Your Company Name
1
Value Chain Analysis Framework
2
Primary
Activities
Support
Activities
Firm Infrastructure
Human resource management
Technology Development
Procurement
Management, Finance, Legal,
Planning
Professional development, Employee relations, Performance
appraisals, Recruiting, Competitive wages, Training programs
Integrated supply chain system, Real-time sales
information
Real-time inventory, Communication with suppliers,
Purchase supplies and materials
Inbound
Logistics
Operations Outbound
Logistics
Marketing &
Sales
After Sales
Service
› Real-time inbound
inventory data
› Location of
distribution facilities
› Trucks
› Material Handling
› Warehouse
› Standardized
model
› Access to real-time
sales & inventory
system
› Order processing
› Full delivery trucks
› Pricing
› Communication
› Promotion
› Product based on
community needs
› Low prices
› Delivery
› Installation
› Repair
› Greeters
› Customer service
focus
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Primary Activities
3
PrimaryActivityDescription
Operations
The manufacture of
products and services –
the way in which resource
inputs (e.g. materials) are
converted to outputs (e.g.
products)
Inbound
Logistics
All those activities
concerned with receiving
and storing externally
sourced materials
Service
All those activities
associated with
maintaining product
performance after the
product has been sold
Outbound
Logistics
All those activities
associated with getting
finished goods and
services to buyers
Marketing & Sales
Essentially an information
activity – informing buyers
and consumers about
products and services
(benefits, use, price etc.)
Secondary Activities
4
SecondaryDescription
Procurement
All those activities concerned
with receiving and storing
externally sourced materials
Human Resource
Management
The manufacture of products
and services – the way in which
resource inputs (e.g. materials)
are converted to outputs (e.g.
products)
Technology
Development
All those activities associated
with getting finished goods and
services to buyers
Infrastructure
Essentially an information
activity – informing buyers and
consumers about products and
services (benefits, use, price
etc.)
Value Chain – Approaches To Perform Analysis
5
Competitive
Advantages
Types
There are two different approaches on how to perform the analysis, which depend on what type of
competitive advantage a company wants to create
This approach is used when organizations try to
compete on costs & want to understand the
sources of their cost advantage or disadvantage
& what factors drive those costs
Cost Advantage
The firms that strive to create superior products
or services use differentiation advantage
approach
Differentiation Advantage
Cost Advantage
6
Identify the firm’s primary and
support activities
› All the activities (from receiving and
storing materials to marketing, selling
and after sales support) that are
undertaken to produce goods or services
have to be clearly identified and
separated from each other
› This requires an adequate knowledge of
company’s operations because value
chain activities are not organized in the
same way as the company itself
Step
1
Step
2
Establish the relative importance
of each activity in the total cost
of the product
› The total costs of producing a product or
service must be broken down and assigned
to each activity. Activity based costing is
used to calculate costs for each process
› Activities that are the major sources of cost
or done inefficiently (when benchmarked
against competitors) must be addressed first
Cost Advantage
7
Identify cost drivers for each
activity
› Only by understanding what factors drive
the costs, managers can focus on
improving them.
› Costs for labor-intensive activities will be
driven by work hours, work speed, wage
rate, etc
Identify links between activities
› Reduction of costs in one activity may lead to
further cost reductions in subsequent activities.
› Identifying the links between activities will lead
to better understanding how cost improvements
would affect he whole value chain
Step
3
Step
4
Step
5
Identify opportunities for
reducing costs
› When the company knows its inefficient
activities and cost drivers, it can plan on how
to improve them
› Too high wage rates can be dealt with by
increasing production speed, outsourcing jobs
to low wage countries or installing more
automated processes
Differentiation Advantage
8
After identifying all value chain activities,
managers have to focus on those
activities that contribute the most to
creating customer value
Managers can use the following strategies to increase
product differentiation and customer value:
› Add more product features
› Focus on customer service & responsiveness
› Increase customization
› Offer complementary products
Usually, superior differentiation and customer
value will be the result of many interrelated
activities and strategies used. The best
combination of them should be used to pursue
sustainable differentiation advantage
Identify the
Customers’ Value-
creating Activities
Step 1
Evaluate the
Differentiation
Strategies for
Improving
Customer Value
Step 2
Identify the Best
Sustainable
Differentiation
Step 3
Value Chain Analysis – 3 Step Process
9
Identify the activities
you undertake to
deliver your product or
service
For each activity thin
through what you
would do to add the
greatest value for your
customer
Evaluate whether it is
worth making
changes, and then
plan for action
Activity
Analysis
Value
Analysis
Evaluation
& Planning
Competitor’s Value Analysis
10
Value
Activity 1
Value
Activity 2
Value
Activity 3
Value
Activity 4
Value
Activity 5
Competitor 1
Competitor 2
Competitor 3
Competitor 4
Competitor 5
Competitor 6
Competitor 7
Competitor 8
Let’s have a
Coffee Break
11
12
Graphs &Charts
13
0
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30
40
50
60
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80
90
100
FY' 07 FY' 08 FY' 09 FY' 10 FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 FY' 16 FY' 17 FY' 18
Financial Year 2018
Sales in Percentage(%)
> Product 2
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> Product 1
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Line Chart
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0
5
10
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20
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30
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FY' 07 FY' 08 FY' 09 FY' 10 FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 FY' 16 FY' 17 FY' 18
Scatter Chart
14
Sales in Percentage(%)
30%> Product 1
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
15
0
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40
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90
100
FY' 18FY' 17FY' 16FY' 15FY' 14FY' 13FY' 12FY' 11
> Product 2
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> Product 1
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Area Chart
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Stock Chart
16
0
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20
30
40
50
60
70
0
20
40
60
80
100
120
140
160
FY '14 FY '15 FY '16 FY '17 FY '18
Volume
Volume
High
Low
> Product 1
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
17
6 9
14 17
22 25 27 30 34
9
15
17
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0
10
20
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40
50
60
70
FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09
Profit(Milliondollars)
> Product 2
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> Product 1
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Stock Chart
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18
Additional Slides
Our Mission
19
Vision
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Mission
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Goal
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Our Team
20
Mary Parker
CEO & Founder
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Robin Clark
Finance Manager
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Jess Leo
Designer
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Our Goal
21
Text
Here
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22
About Us
Target Audiences
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Preferred By Many
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Valued Clients
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23
Comparison
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60% 40%
Financial
24
Minimum
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15%
Medium
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20%
Maximum
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35%
The important word there is inspire. The key
different between manager and leader is that
managers tell people what to do, while leaders
inspire them to do it. Inspiration comes from three
things. Clarity of one’s vision, courage of their
conviction and the ability to effectively communicate
both of those things.
25
- Jeff Weiner
Quotes
Dashboard
26
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100
60
80%
(High)
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attention.
20
100
60
40%
(Low)
Location
27
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Population
50%
80%
CANADAUSA
Population
90%
50%
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Puzzle
28
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01
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Target
Circular
30
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02
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05
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07
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Here
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Mind Map
32
Silhouettes
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Lego
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Hierarchy
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Bulb Or Idea
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Magnifying
Glass
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Address
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Contact Numbers:
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Email Address:
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Value Chain Analysis Optimization

  • 1. Value Chain Analysis Your Company Name 1
  • 2. Value Chain Analysis Framework 2 Primary Activities Support Activities Firm Infrastructure Human resource management Technology Development Procurement Management, Finance, Legal, Planning Professional development, Employee relations, Performance appraisals, Recruiting, Competitive wages, Training programs Integrated supply chain system, Real-time sales information Real-time inventory, Communication with suppliers, Purchase supplies and materials Inbound Logistics Operations Outbound Logistics Marketing & Sales After Sales Service › Real-time inbound inventory data › Location of distribution facilities › Trucks › Material Handling › Warehouse › Standardized model › Access to real-time sales & inventory system › Order processing › Full delivery trucks › Pricing › Communication › Promotion › Product based on community needs › Low prices › Delivery › Installation › Repair › Greeters › Customer service focus This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 3. Primary Activities 3 PrimaryActivityDescription Operations The manufacture of products and services – the way in which resource inputs (e.g. materials) are converted to outputs (e.g. products) Inbound Logistics All those activities concerned with receiving and storing externally sourced materials Service All those activities associated with maintaining product performance after the product has been sold Outbound Logistics All those activities associated with getting finished goods and services to buyers Marketing & Sales Essentially an information activity – informing buyers and consumers about products and services (benefits, use, price etc.)
  • 4. Secondary Activities 4 SecondaryDescription Procurement All those activities concerned with receiving and storing externally sourced materials Human Resource Management The manufacture of products and services – the way in which resource inputs (e.g. materials) are converted to outputs (e.g. products) Technology Development All those activities associated with getting finished goods and services to buyers Infrastructure Essentially an information activity – informing buyers and consumers about products and services (benefits, use, price etc.)
  • 5. Value Chain – Approaches To Perform Analysis 5 Competitive Advantages Types There are two different approaches on how to perform the analysis, which depend on what type of competitive advantage a company wants to create This approach is used when organizations try to compete on costs & want to understand the sources of their cost advantage or disadvantage & what factors drive those costs Cost Advantage The firms that strive to create superior products or services use differentiation advantage approach Differentiation Advantage
  • 6. Cost Advantage 6 Identify the firm’s primary and support activities › All the activities (from receiving and storing materials to marketing, selling and after sales support) that are undertaken to produce goods or services have to be clearly identified and separated from each other › This requires an adequate knowledge of company’s operations because value chain activities are not organized in the same way as the company itself Step 1 Step 2 Establish the relative importance of each activity in the total cost of the product › The total costs of producing a product or service must be broken down and assigned to each activity. Activity based costing is used to calculate costs for each process › Activities that are the major sources of cost or done inefficiently (when benchmarked against competitors) must be addressed first
  • 7. Cost Advantage 7 Identify cost drivers for each activity › Only by understanding what factors drive the costs, managers can focus on improving them. › Costs for labor-intensive activities will be driven by work hours, work speed, wage rate, etc Identify links between activities › Reduction of costs in one activity may lead to further cost reductions in subsequent activities. › Identifying the links between activities will lead to better understanding how cost improvements would affect he whole value chain Step 3 Step 4 Step 5 Identify opportunities for reducing costs › When the company knows its inefficient activities and cost drivers, it can plan on how to improve them › Too high wage rates can be dealt with by increasing production speed, outsourcing jobs to low wage countries or installing more automated processes
  • 8. Differentiation Advantage 8 After identifying all value chain activities, managers have to focus on those activities that contribute the most to creating customer value Managers can use the following strategies to increase product differentiation and customer value: › Add more product features › Focus on customer service & responsiveness › Increase customization › Offer complementary products Usually, superior differentiation and customer value will be the result of many interrelated activities and strategies used. The best combination of them should be used to pursue sustainable differentiation advantage Identify the Customers’ Value- creating Activities Step 1 Evaluate the Differentiation Strategies for Improving Customer Value Step 2 Identify the Best Sustainable Differentiation Step 3
  • 9. Value Chain Analysis – 3 Step Process 9 Identify the activities you undertake to deliver your product or service For each activity thin through what you would do to add the greatest value for your customer Evaluate whether it is worth making changes, and then plan for action Activity Analysis Value Analysis Evaluation & Planning
  • 10. Competitor’s Value Analysis 10 Value Activity 1 Value Activity 2 Value Activity 3 Value Activity 4 Value Activity 5 Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Competitor 6 Competitor 7 Competitor 8
  • 13. 13 0 10 20 30 40 50 60 70 80 90 100 FY' 07 FY' 08 FY' 09 FY' 10 FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 FY' 16 FY' 17 FY' 18 Financial Year 2018 Sales in Percentage(%) > Product 2 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > Product 1 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Line Chart This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 14. 0 5 10 15 20 25 30 35 FY' 07 FY' 08 FY' 09 FY' 10 FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 FY' 16 FY' 17 FY' 18 Scatter Chart 14 Sales in Percentage(%) 30%> Product 1 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 15. 15 0 10 20 30 40 50 60 70 80 90 100 FY' 18FY' 17FY' 16FY' 15FY' 14FY' 13FY' 12FY' 11 > Product 2 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > Product 1 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Area Chart This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 16. Stock Chart 16 0 10 20 30 40 50 60 70 0 20 40 60 80 100 120 140 160 FY '14 FY '15 FY '16 FY '17 FY '18 Volume Volume High Low > Product 1 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 17. 17 6 9 14 17 22 25 27 30 34 9 15 17 23 25 29 34 36 39 0 10 20 30 40 50 60 70 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 Profit(Milliondollars) > Product 2 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > Product 1 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Stock Chart This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
  • 19. Our Mission 19 Vision This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Mission This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Goal This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 20. Our Team 20 Mary Parker CEO & Founder This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Robin Clark Finance Manager This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Jess Leo Designer This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 21. Our Goal 21 Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 22. 22 About Us Target Audiences This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Preferred By Many This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Valued Clients This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 23. 23 Comparison This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 60% 40%
  • 24. Financial 24 Minimum This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 15% Medium This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 20% Maximum This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 35%
  • 25. The important word there is inspire. The key different between manager and leader is that managers tell people what to do, while leaders inspire them to do it. Inspiration comes from three things. Clarity of one’s vision, courage of their conviction and the ability to effectively communicate both of those things. 25 - Jeff Weiner Quotes
  • 26. Dashboard 26 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 20 100 60 80% (High) This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 20 100 60 40% (Low)
  • 27. Location 27 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Population 50% 80% CANADAUSA Population 90% 50% This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 28. Puzzle 28 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 04 01 02 03
  • 29. 29 > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Target
  • 30. Circular 30 This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. This slide is 100%editable. Adapt it to your needs and capture your audience’s attention. 01 02 03 04 05 06 07 08 Text Here
  • 31. 31 > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Venn Text Here Text Here Text Here Text Here
  • 32. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Mind Map 32
  • 33. Silhouettes 33 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 01 02 03
  • 34. Lego 34 01 02 03 05 04 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 35. Hierarchy 35 Text Here Text Here Text Here Text Here Text Here Text Here Text Here Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
  • 36. 36 > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Bulb Or Idea
  • 37. 37 > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. > This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Magnifying Glass
  • 38. 38 Address # street number, city, state Contact Numbers: 0123456789 Email Address: emailaddress@gmail.com Thank you For Your Attention