this ppt is about a concept of strategic management : value chain analysation

1. Strategic Management Presentation
Value Chain Analysis
Presented by :
Anmol Gupta

2. VALUE :
Value is the total amount that buyers
are willing to pay for a firms product.
Value chain tool is developed by Mr.
Michael Porter , Harvard Business
School.

3. VALUE CHAIN :
• Value chain is most crucial element in SM.
• It is what, what is the value that created of Org.
towards its product and services.
• Porter’s Value chain focuses on all activities
- to design
- to produce
- to market
- to deliver
- and support product & services

4. VALUE CHAIN : continue...
• Value chain is concentrating on the activities
started with the raw materials till the conversion
into final goods & services.
Activities are categorized into :
1. PRIMARY ACTIVITIES
2. SECONDARY ACTIVITIES

5. VALUE CHAIN : continue...
1. PRIMARY ACTIVITIES
Primary activities includes ( Operations, Distributions,
Sales etc. )
2. SECONDARY ACTIVITIES
Secondary activities includes ( R&D, Human Resource
etc. )

6. TYPES OF VALUE CHAIN
Value chain is of 3 types :
1. Manufacturing Based
2. Service Based
3. Both Manufacturing and service based

7. VALUE CHAIN ANALYSIS
• It is a chain of activities that a firm is operating in
order to deliver a valuable product or services to
the market.
• Value chain analysis look at every step a business
goes through. (from raw material to eventual end-
user.
• Goal of VCA is to deliver maximum value for least
possible total cost.

8. Value Chain Model : Fishbone diagram

9. FIRMS ACTIVITIES
PRIMARY ACTIVITIES : SUPPORT ACTIVITIES :
1. INBOUND LOGISTICS
2. OPERATIONS
3. OUTBOUND LOGISTICS
4. SALES & MARKETING
5. SERVICE SUPPORT
1. FIRMS INFRASTRUCTURE
2. HRM
3. TECH. DEVLOPMENT
4. PROCUREMENT

10. THANK YOU