Question

np.ulel-365cmid=2597&page=16 ACC103- IT in Accoun.. BUSINESS estion 17 ot yet swered "Value is provided by performing a series of activities referred to as the value chain". Explain the primary activities and give examples? arked out of DO A- B 1 Flag uestion E Fini Tim

Answer 1

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•What Is a Value Chain?

A value chain is a combination of the systems a company or organization uses to make money. That is, a value chain is made up of various subsystems that are used to create products or services. This includes the process from start to finish.

# -Porter breaks value chain analysis into five primary activities. Then, he further breaks those down into four activities that help support primary activities.

••Porter’s Value Chain Primary Activities-

1. Inbound logistics

2. outbound logistics

3. operations

4. marketing and sales

5. services.

1).Inbound logistics include the receiving, warehousing and inventory control of a company's raw materials. This also covers all relationships with suppliers.

•For example, for an e-commerce company, inbound logistics would be the receiving and storing products from a manufacturer that it plans to sell.

2).All activities to distribute a final product to a consumer are considered outbound logistics. This includes delivery of the product but also includes storage and distribution systems and can be external or internal. For the e-commerce company above, this includes storing products for shipping and the actual shipping of said products.

3).Operations include procedures for converting raw materials into a finished product or service. This includes changing all inputs to ready them as outputs. In the above e-commerce.

• example, this would include adding labels or branding or packaging several products as a bundle to add value to the product.

4).Strategies to enhance visibility and target appropriate customers—such as advertising, promotion, and pricing—are included in marketing and sales. Basically, this is all activities that help convince a consumer to purchase a company’s product or service.

•Continuing with the above example, an e-commerce company may run ads on Instagram or build an email list for email marketing.

5).This includes activities to maintain products and enhance consumer experience—customer service, maintenance, repair, refund, and exchange. For an e-commerce company, this could include repairs or replacements, or warranty.