Value Chain Basics
The definition of a value chain.
What is a series of interrelated activities that add value to a company’s products or services?
This activity focuses on obtaining and storing raw materials.
What is inbound logistics?
This support activity manages employees and their skills.
What is human resource management?
The role of cost reduction in creating value for customers.
What is lowering production or service costs to pass savings on to customers?
A company’s ability to outperform competitors using the value chain.
What is gaining competitive advantage?
The purpose of a value chain in cost accounting and decision-making.
What is to identify ways to improve value while managing or reducing costs?
The stage where inputs are converted into finished goods.
What is operations?
An activity responsible for acquiring raw materials and equipment.
What is procurement?
A strategy that involves focusing on high-value activities and eliminating waste.
What is cost optimization?
An example of outsourcing to reduce costs in the value chain.
What is outsourcing production to a lower-cost region or supplier?
The term for linking value-creating activities across a company.
What is value chain integration?
The term for moving products to customers.
What is outbound logistics?
This activity supports innovation and operational improvements.
What is technological development?
The tool used to analyze costs at each stage of the value chain.
What is value chain analysis?
The benefit of integrating suppliers and customers into the value chain.
What is improved efficiency and stronger relationships across the supply chain?
The role of cost management in the value chain.
What is to assess costs at each stage and optimize activities to maximize customer value?
Efforts aimed at making customers aware of a product or service.
The term for the planning and structure of business operations.
What is firm infrastructure?
The importance of identifying cost drivers in the value chain.
What is to determine what factors influence costs and how to manage them effectively?
The connection between the value chain and sustainability initiatives.
What is using sustainable practices in operations to add value and appeal to customers?
The relationship between the value chain and achieving competitive advantage.
What is using the value chain to differentiate products or lower costs to outperform competitors?
The activity responsible for after-sale customer support.
What is service?
How support activities enhance the effectiveness of primary activities.
What is by providing necessary resources, skills, and technology?
The balance between cost and differentiation in maximizing value.
What is achieving cost-efficiency while maintaining product uniqueness?
The role of technology in enhancing the value chain's effectiveness.
What is improving efficiency, reducing costs, and supporting innovation?