Answer to Question #169679 in Management for Mody

Question

Draw a typical company value chain and briefly explain why the proficiency with which a firm performs the activities comprising its value chain matters??

Answer 1

The value chain of a company identifies the primary activities and related support activities that generate value for the customer. Focusing on value-creating activities, the value chain is the ideal tool for examining the workings of a company's value proposition and business model. Value chain analysis makes it easier to compare how rivals, activity by activity, deliver value to customers.

Accurate assessment of the competitiveness of a company involves examining the nature and costs of value chain activities across the entire value chain system for delivering its products or services to end-use customers.

A representative company value chain has the following primary activities:

• Supply Chain Management

• Operations

• Distribution

• Sales and Marketing

• Service

Support Activities comprise of:

• Product R and D, Technology, and Systems Development

• Human Resource Management

• General Administration