Value Chain Analysis

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COLLEGE OF TECHNOLOGY LONDON
LONDON

ASSIGNMENT 1
MANAGEMENT INFORMATION SYSTEM

Submitted by,
ALLWYN MATHEW
BA BIT TERM 4
STUDENT ID- 070209-91
allwyn.mathew@stu.ctlondon.ac.uk

TABLE OF CONTENT

1. INTRODUCTION………………………………………………………….. 2 2. DISCOVERING THE COURSE OF ACTION FOR VALUE CHAIN… 2
3. THE VALUE CHAIN ANALYSIS OF TESCO………………………….. 3 A. PRIMARY ACTIVITIES
(a) Inbound logistics……………………………………………………. 3 (b) Operations…………………………………………………………... 4 (c) Outbound logistics………………………………………………….. 4 (d) Marketing and Sales………………………………………………... 4 B. SUPPORTING ACTIVITIES

(a) Company Infrastructure…………………………………………… 4 (b) Human Resource Management……………………………………. 5 (c) Technology Development…………………………………………... 5 4. THE INFORMATION SYSTEM MODEL………………………………. 5 5. CONCLUSION…………………………………………………………….. 8 6. REFERENCES…………………………………………………………….. 9

1. INTRODUCTION
In the present concept, in order to cope up with the rising competition involved in the business market, organizations adopt innovative and strategic IT systems so as to gain sustainable competitive advantage over their competitors. By revising the business processes and integrating them with information systems and culture the business will be able to experience an increase in sales and minimization of costs. By selection of appropriate systems and technologies, uncalled-for systems are eradicated. ‘The strategic information systems (SIS) are the category of systems that mastermind a business division’s competitive strategy.’ (Callon, 1996 and Neumann, 1994) To keep up with the growing customer demands and for increasing the market share, many organizations are now turning to expansion. But for this, it is essential that the right strategic information system is chosen. The systems used may vary from EIS, OIS, TPS, KMS- or any other systems which satisfies the objectives of the organization and in the process aid them in gaining a competitive advantage. “Information systems plays a vital role in the e-business and e-commerce operations, enterprise collaboration and management and strategic success of business that must operate in an internetworked environment.” [Sachenko, 2010] The selection of a suitable strategy to get the most out of a highly rated and loyal brand tends to be profitable for business organizations. For understanding achieving and sustainable competitive advantage and in order to maintain the particular edge, it is essential to have a lucid understanding of the value chain and its impact on strategy of an organization in developing a sustainable competitive advantage over its competitors. By any way, if the organization is able to excel in the business market by virtue of their product or service, it would turn out to be economically useful as it would enable high cost-cuts in terms of advertising while entering a particularly new business market thus providing on the spot integrity. The following paper tends to provide an insight on the information system model which is likely to have a strategic impact on specific activities in the business. In addition, the strategic information system will also be used to explain the value chain model of Tesco, the retail organization under study. 2. DISCOVERING THE COURSE OF ACTION FOR VALUE CHAIN

Before entering into the new market as a part of expansion, it is essential that the business organization makes a thorough study of the resemblance between the existing states of the market which can be achieved via cautious value chain analysis. By determining the value chain analysis, a business organization becomes in a better position to make up their minds on whether or not to enter the business market. “Value chain involves all of the activities that a company performs internally to create value for the buyers.” (Thompson et al., 2004, p.69) Ventures made by entrepreneurs based on...
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