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1. Presented By-
Sumit Kaushik 14020541056
Tanvi Godbole 14020541057
Ula Javed 14020541058
Utkarsh Nalgundwar 14020541059
Vedant Singh 14020541060
Tarun Kanade 14020541061
Nagendra Battala 14020541064
Porter’s Value Chain

2. • A value chain is a chain of activities that a firm operating in a specific industry performs in
order to deliver a valuable product or service for the market.
• Value-chain analysis looks at every step a business goes through, from raw materials to the
eventual end-user. The goal is to deliver maximum value for the least possible total cost.
• The way in which value chain activities are performed determines costs and affects profits,
so this tool can help you understand the sources of value for your organization.
PORTER’S VALUE CHAIN

3. VALUE CHAIN MODEL
(FISH BONE DIAGRAM)

4. PRIMARY
ACTIVITIES

5. • INBOUND LOGISTICS - concerned with receiving, storing, distributing inputs.
(e.g. handling of raw materials, warehousing, inventory control)
• OPERATIONS - comprise the transformation of the inputs into the final product form (e.g.
production, assembly, and packaging)
• OUTBOUND LOGISTICS -involve the collecting, storing, and distributing the product to
the buyers . (e.g. processing of orders, warehousing of finished goods, and delivery)
PRIMARY ACTIVITIES

6. • MARKETING AND SALES -identification of customer needs and generation of
sales.
(e.g. advertising, promotion, distribution)
• SERVICE -involves how to maintain the value of the product after it is purchased.
(e.g. installation, repair, maintenance, and training)
PRIMARY ACTIVITIES

7. SUPPORT ACTIVITIES

8. • FIRM INFRASTRUCTURE- The activities such as Organization structure, control system, company culture
are categorized under firm infrastructure.
• HUMAN RESOURCE MANAGEMENT- Involved in recruiting, hiring, training, development and
compensation.
• TECHNOLOGY DEVELOPMENT- These activities are intended to improve the product and the process, can
occur in many parts of the firm.
• PROCUREMENT- Concerned with the tasks of purchasing inputs such as raw materials, equipment, and even
labour.
SUPPORT ACTIVITIES

9. • The value chain is a tool for systematically examining the activities of a firm and how they interact
with one another and affect each other’s cost and performance.
• Profits depends on how well firms execute these activities in the value chain
• A firm gains a competitive advantage by performing these activities better or at lower cost than
competitors.
• Competitive advantage is gained through cost advantage & through product differentiation.
Why this matters? (Utility)

11. Anand Milk Union Limited
 Type- Cooperative
 Industry- Dairy/FMCG
 Founded- 1946 A.D.
 Headquarters- Anand ,Gujrat.
 Revenue- US $ 3.1 billion.
 Market share –Butter : 85%
 Choclates : <10%

12. Products Offered

13. Logistics (Inbound)
 Procurement of 13 million lts of milk per day.
 Cold storage Network-
 Chillers in proximity of villages.
 Chilled trucks
 insulated rail tankers.
 24 cold storage in various locations across the country developed
by Amul itself.

14. Operations
 Quality check –Amul has it’s
own quality check
mechanisms – Quality
Assurance Laboratory.
 Tetra Pak Group – for
packaging. Milk packaged
here need not be boiled and
is ready for consumption.

15. Logistics (Outbound)
 Distribution channel ensures that product reaches every
nook and corner of the country.
 Creation of cold chain to transport these products and
store it closest to the market with the required cooling
infrastructure.
 Amul products are available in over 8,00,000 retail
outlets across India through its network of over 5,000
distributors.

16. Marketing
 Gujrat Cooperative Milk Marketing Federation
 Partners with Ogilvy and Mather for thoughtful
advertisements.
 Amul has one of the longest running add campaign in the
world with Amul girl as their mascot.
 Advertising and Sales Promotions
 To be simple, fresh and innovative.
 Emotion based adds on current affairs.

18. Services
 Census of all retail outlets (over 5 lacs) to evaluate customer
perceptions and distribution efficacy of their network.
 Amul relief trust.
 Customer feedback for quality management.

19. Procurement
 Milk Collection (Total - 2013-14)-4.79 billion
litres
 Milk collection (Daily Average 2013-14)-
13.18 million litres
 Source-2.79 million farmers
 Hierarchical system
 Gujrat -biggest sourcing point of milk
 Other states contributing towards Amul : Maharashtra,
Karnataka, AP, MP, Rajasthan, Orissa, West Bengal ,J&K and
Punjab

20. Technology Development
 AMCUS –automatic milk collection system units to automate milk production logistics and to capture member information ,
fat content , volume collected and amount payable to each member electronically
 Application and utilization of GIS (Geographic Information System)
 DISK (dairy info system kiosk) provided by IIM Ahmedabad to facilitate data analysis and decision support in improving milk
collection
 TCS was hired by Amul for EIAS – enterprise wise integrated Application systems for implementation for ERP
 Amul also connected its zonal offices, regional offices and dairies through VSATs.
 Amul actively pursues developments in embryo transfer and cattle breeding in order to improve cattle quality and increases
in milk yields.

21. HR Management
 All policies have been designed keeping the betterment of
farmers in mind
 Training for transformational leadership.
 Training for farmers emphasizing on need of good health care of
cattle
 Medical Assistance Scheme to employees (full fledged
dispensaries at factories),transport facility, meals at subsidized
rates
 HRIS – Human Resource Information System.

22. Firm Infrastructure
 Quality Management
 TQM Model (Total Quality Management) - improvement in
quality of milk in term of acidity and sour milk
 Milk Union records show 2% reduction in the amount of the sour
milk received from the union
 Improved microbiological quality of upcoming raw milk to give
better shelf life to the product
 Regular meetings to discuss various quality concerns.

23.  Financial Management
 Weekly forecast of funds in which requirement of each department is
mentioned.
 Driven primarily by its desire to be self reliant and thus depend on
internally generated resources for funding its growth and
development.
 Amul’s financial strategy may thus characterized by two elements
a. Retention of surplus to fund growth and development
b. Limited/no credit i.e all transactions are essentially cash only

25. General Overview
 Type : Public
 Industry type : Automotive
 Founded : 1945 A.D.
 Founder : Jamsetji Tata
 Headquarter : Mumbai, Maharashtra, India
 Area Served : Worldwide
 Revenue : USD $ 38.6 billion (FY 2013-14)
 Tata Motors entered the passenger vehicle market in 1991 with the launch of the
Tata Sierra, becoming the first Indian manufacturer to achieve the capability of
developing a competitive indigenous automobile
 In 1998, Tata launched the first fully indigenous Indian passenger car, the Indica, and
in 2008 launched the Tata Nano, the world's most affordable car.

26. Inbound
Logistics
Operations Marketing Service
Outbound
Logistics
Suppliers , Contractors
Strategic Alliances
Transporters, Convoy
Drivers Association
Dealer Network, Marketing
Research Firms, Vehicle
Financing
Regional Warehouses,
Dealer Workshops,
Distributors, TASS
Value Chain & Value System
SAP , VCM
SAP , CRM - DMS

27. Supported By
Multi – Location facilities
Strong leadership –
under the aegis of Tata
Sons
Best in class prototype
building facilities
Technology – SAP
Large product portfolio
Vast pool of technically
competent engineers
Focus on development
Technical Training
Center’s, Alliance with
technical Institutes
Focus on development of
managerial capabilities –
MTC’s , TMTC, executive
Approximately 2% of the
annual profits of the
company invested in
research and
development.
Knowledge portal – helps
employees keep abreast
with the latest
technologies.
Extensive prototype
building and testing
facilities.
Global Sourcing Team –
China , a key destination
for sourcing essential
items like tires, power
steering units etc.
Long term relationships
with a stable and loyal
pool of suppliers
Group resources – Tata
Steel and Tata
International

28.  Industry: American multinational corporation specializing in Internet Service and Application Service
Provider
 Google was founded by Larry Page and Sergey Brin
 Revenue : US$ 66 billion
 Headquarters : Googleplex, Mountain View, California, U.S
 Major Sectors:-
- Advertising
- Search Engine
- Cloud Computing
 Primary Revenue Source: Advertising (97%)

29. Interface
Operating
System
Browser
Internet
Access
Websites Ads Ad
Technologies
Advertiser
Relationships
Google
Offerings
Nexus
Chrome book
Android
Chrome OS
Google
Chrome
Google
Fiber
Search
YouTube
Maps
Finance
Google+
Drive
AdSense
Ad Words
Banner Ads
Ad Mob
Double
Click
On2 Tech
Aardvark
Google
Analytics

30. Firm
Infrastructure
Human Resource
Technology
Development
Procurement
Clear Vision and Strong Industry Focus,
Good Financing, Legal Support
Good R&D , Product Development and Innovations ,
Server Technology, Compression Technology, faster response Time
Servers based in all over the globe
From servers all
over the globe,
Google Database,
Satellite images
Inbound
Logistics
Multiskilled people, Ownership and Pride, Global Talent
Web,
Mobile,
Desktop
Indexing,
Compression,
Storage,
Retrieval,
Updation
Good
Brand
Value
Relevant
Web page
to user
Operations Outbound
Logistics
Marketing
And
Sales
Services
PrimaryActivitySupportActivity