Strategic Management
2/22/2013
The Value Chain
Strategic
Management
• Value Chain
– Value chain is a convenient way of looking at the firm’s activities Introducing Strategy Management
– The functional activities within the firm that create value in the goods and services produced
(Basic Concepts of Strategic Management)
Lecture 3
21.2.2013
– Value chain: all the activities that a firm uses to design, produce, market, deliver, and support its product
Dr. Kayhan Tajeddini
Associate Professor (Docent)
Department of Business Administration,
School of Economics and Management
Lund University, Sweden
Kayhan.Tajeddini@ritz.edu
2013
Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall
Components of the Value Chain
• Primary activities: physical actions of creating, selling, and after-sale service of products
• Upstream: early activities in the value chain
1-1
3–2
Copyright © 2009 Cengage. All rights reserved. Business Functions, The Value Chain, and Value Creation
The Value Chain
– R&D
– Dealing with suppliers
• Downstream: later value chain activities
– Sales
– Dealing with distribution channels
Inputs
Research and Development
Outputs
Primary Activities
1
2/22/2013
Business Functions, The Value Chain, and Value Creation
The Value Chain
Inputs
Research and Development
Business Functions, The Value Chain, and Value Creation
The Value Chain
Production
Outputs
Inputs
Research and Development
Production
Marketing and Sales
Outputs
Primary Activities
Primary Activities
Business Functions, The Value Chain, and Value Creation
Business Functions, The Value Chain, and Value Creation
The Value Chain
The Value Chain
Company Infra-Structure
Support
Activities
Human Resources
Materials Management
Inputs
Research and Development
Production
Marketing and Sales
Primary Activities
Service
Outputs
The Value Chain
Strategic
Management
• Value Chain
– Value chain is a convenient way of looking at the firm’s activities Introducing Strategy Management
– The functional activities within the firm that create value in the goods and services produced
(Basic Concepts of Strategic Management)
Lecture 3
21.2.2013
– Value chain: all the activities that a firm uses to design, produce, market, deliver, and support its product
Dr. Kayhan Tajeddini
Associate Professor (Docent)
Department of Business Administration,
School of Economics and Management
Lund University, Sweden
Kayhan.Tajeddini@ritz.edu
2013
Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall
Components of the Value Chain
• Primary activities: physical actions of creating, selling, and after-sale service of products
• Upstream: early activities in the value chain
1-1
3–2
Copyright © 2009 Cengage. All rights reserved. Business Functions, The Value Chain, and Value Creation
The Value Chain
– R&D
– Dealing with suppliers
• Downstream: later value chain activities
– Sales
– Dealing with distribution channels
Inputs
Research and Development
Outputs
Primary Activities
1
2/22/2013
Business Functions, The Value Chain, and Value Creation
The Value Chain
Inputs
Research and Development
Business Functions, The Value Chain, and Value Creation
The Value Chain
Production
Outputs
Inputs
Research and Development
Production
Marketing and Sales
Outputs
Primary Activities
Primary Activities
Business Functions, The Value Chain, and Value Creation
Business Functions, The Value Chain, and Value Creation
The Value Chain
The Value Chain
Company Infra-Structure
Support
Activities
Human Resources
Materials Management
Inputs
Research and Development
Production
Marketing and Sales
Primary Activities
Service
Outputs