Value Chain Analysis Essay

The primary activities (Porter, 1985) of the company include the following: • Inbound logistics These are the activities concerned with receiving the materials from suppliers, storing these externally sourced materials, and handling them within the firm. Here goods are received from a company’s suppliers. They are stored until they are needed on the production/assembly line. Goods are moved around the organisation. ~ Fresh fruit and vegetables are delivered and prepared every day. • Operations These are the activities related to the production of products and services.

This area can be split into more departments in certain companies. For example, the operations in case of a hotel would include reception, room service etc. ~All golf course fairways are trimmed and watered daily. • Outbound logistics These are all the activities concerned with distributing the final product and/or service to the customers. For example, in case of a hotel this activity would entail the ways of bringing customers to the hotel. ~ Limousines are available to take guests to airports as they finish their stay. • Marketing and sales:

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This functional area essentially analyses the needs and wants of customers and is responsible for creating awareness among the target audience of the company about the firm’s products and services. Companies make use of marketing communications tools like advertising, sales promotions etc. to attract customers to their products. ~ Fen Side is promoted through magazines targeted at the weathly and influential. •Service There is often a need to provide services like pre-installation or after-sales service before or after the sale of the product or service. ~ The whole experience is based upon high quality, professional service at every stage. Support activities The support activities of a company include the following: •Procurement This function is responsible for purchasing the materials that are necessary for the company’s operations. An efficient procurement department should be able to obtain the highest quality goods at the lowest prices ~ Fen Side has a series of contracts with suppliers of meat and fish. •Human Resource Management

This is a function concerned with recruiting, training, motivating and rewarding the workforce of the company. Human resources are increasingly becoming an important way of attaining sustainable competitive advantage Employees are an expensive and vital resource. An organisation would manage recruitment and s election, training and development, and rewards and remuneration. The mission and objectives of the organisation would be driving force behind the HRM strategy. ~ All staff are trained to the highest industry standards. Technology Development This is an area that is concerned with technological innovation, training and knowledge that is crucial for most companies today in order to survive. Technology is an important source of competitive advantage. Companies need to innovate to reduce costs and to protect and sustain competitive advantage. This could include production technology, Internet marketing activities, lean manufacturing, Customer Relationship Management (CRM), and many other technological developments. The hotel has an advanced room reservation system. • Firm Infrastructure This includes planning and control systems, such as finance, accounting, and corporate strategy etc. (Lynch, 2003) This activity includes and is driven by corporate or strategic planning. It includes the Management Information System (MIS), and other mechanisms for planning and control such as the accounting department. •~ The hotel management team focus on goals set out in their strategic plan.


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