Here you can understand the value analysis ( Supportive activities and Primary activities ) and organizational appraisal.

1. Value chain analysis
&
organizational appraisal
PRESENTED BY -Arhaam Ansari
nishant Tiwari
manu singh

2. What is the value chain?
Porter’s definition includes all activities to design, produce,
market, deliver, and support the product/service.
The value chain is concentrating on the activities starting with raw
materials till the conversion into final goods or services.
Two categories:
 Primary Activities (operations, distribution, sales)
Support Activities (R&D, Human Resources)

3. VALUE CHAIN ANALYSIS
Value chain analysis (VCA) is a process where a firm
identifies its primary and support activities that add
value to its final product and then analyze these activities
to reduce costs or increase differentiation.
Value chain represents the internal activities a firm
engages in when transforming inputs into outputs.

4. TYPES OF FIRM ACTIVITIES
 Primary Activities
Those activities are involved in the creation,
sale and transfer of products (including after-
sales service)
 Inbound logistics
 Operations
 Outbound logistics
 Sales and marketing
 Service and support
 Support Activities
Those activities merely support the primary
activities
 Firm Infrastructure
 Human Resource Management
 Technology Development
 Procurement

6. Primary Activities
(a) Inbound logistics:- Activities concerned with receiving, storing and
distributing the material, inventory control, warehousing, etc.
(b) Operations:- Activities concerned with transformation of inputs into final
product or service: for example, matching, packing, assembly testing etc.
(c) Outbound logistics:- Activities concerned with collection, storage and
physical distribution of finished goods to the consumers.
(d) Marketing and sales:- Activities concerned with advertising, selling,
administration of sales personnel, etc.
(e) Service:- Activities that enhance or maintain the value of a product / service,
such as installation, repair, training, etc.

7. Support activities
 Firm Infrastructure:-The infrastructure activities embraces all other activities
like finance, legal, public relations, etc. which are essential for the company.
 Human Resource Management:- The human resource activities aim at meeting
the personnel requirement of manufacturing and marketing departments by
proper selection of staff, their training and development.
 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 labor.

8. Organizational appraisal

9. Organizational Appraisal
Organizational appraisal is done to analyze the strength and weakness of the
organization. Organizational appraisal is done in a mean to evaluate the
performance of the organization and the results which have achieved after
implementing strategy.
Organizational appraisal is the process of monitoring an organization’s internal
environment to identify strengths and weaknesses that may influence the firm’s
ability to achieve goals.
 Identifying Strengths and Weaknesses
 Distinctive/Core Competencies
 Identifying Opportunities and Threats
 Strategic Cost Analysis

10. Internal Appraisal
Organizational Resources
 People, Money, Material, Facility, System, Knowledge
Organizational Behavior
 Quality of leadership
 Shared values and culture
 Quality of work Environment
 Organizational Climates
 Organizational politics and use of power
Strength and weaknesses

11. External Appraisal
An external appraisal required to identify profit making opportunities which can
be exploited by the company’s strength and also anticipate environmental threats
( a declining economy, competitors, actions, government legislation, industrial
unrest etc.) against which company must protect itself.
Opportunities
 Possible New Market
 Strong Economy
 Weak Market Rivals
 Emerging Technologies
 Growth of existing Market

12. Threats
 New Competitors
 Shortage of Resources
 Changing Market Taste
 New Regulations
 Substitute Products