Part 2 - value chain

Question 1

What is value chain

Answer 1

The value chain divide value activities into different types in order to understand the BEHAVIOUR OF COST and the existing and potential sources of DIFFERENTIATION

A firm gains COMPETITIVE ADVANTAGES by performing these strategically important activities more cheaply or better than its competitors

Question 2

Primary activities

Answer 2

\+ Inbound logistics
\+ Operations
\+ Outbound logistics
\+ Marketing and sales
\+ After-sales service

Question 3

Support activities

Answer 3

+ Procurement
+ Technology development
+ Human resource management
+ Firm infrastructure

Question 4

Supply chain simplification

Answer 4

• Reducing the number of suppliers and making the chain more efficient
• Affect to: PROCUREMENT, TECHNOLOGY DEVELOPEMENT and INBOUND LOGISTICS
• PM: number of suppliers, number of product lines supplied by each supplier, the time taken to source new products, the revenue and profits obtained from these