Value Chain

Topics: Marketing, Hotel, Hotel chains Pages: 3 (881 words) Published: August 30, 2011
1.0 Export Container Loading Procedure

The value chain is a business analysis that examines the development of competitive advantage. It contains a series of activities that create and build value in the business. Based on Value Chain analysis, managers can identify what activities would add value to the business and what activities are not efficient and effective, so that the company can improve those inefficient activities by investing integrated communication technologies. According to Michael porter, the organisation is split into 'primary activities' and 'support activities; the "primary activities" include: inbound logistics, operations, outbound logistics, marketing and sales, and services (maintenance). The "support activities" include: infrastructure management, human resource management, technology (R&D), and procurement (Porter, 1985). Before analyse the Linkage between these activities and the implementation of ICT in value chain, we need to briefly identify what activities Hilton hotel need to focus on. Here are the value chain activities that Hilton hotel focus on: Supportive activities

1) Procurement.
Hilton hotel have used IT technology to manage all purchasing of goods and services. The aim is to secure the lowest possible price for purchases of the highest possible quality. Normally the purchasing is done by either traditional way likes outsourcing or ePurchasing (using IT and web-based technologies to achieve procurement aims). In Hilton hotel purchasing department used a planning system such as ERP to manage its purchasing. The internet purchasing system makes Hilton can contact its suppliers immediately and the large database is always benefiting Hilton to reduce its suppliers bargaining power. In recent, Hilton hotels agreed to purchased as much as &1.5 billions of bed sheets, pest control service and other items from an online suppliers “” (Weygand, Kimmel & Kieso. 2010). 2) Technology

Technology is...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Value Chain Analysis and Methodology Essay
  • Value Chain-Ikea Essay
  • Essay on Summary of Dell Computers Value Chain Analysis
  • Case Study: Value Chain Analysis of BSRM Group, Bangladesh Essay
  • The Creation of Value Essay
  • Value Chain Essay
  • Value Chain Analysis Essay
  • Value Chain System Essay

Become a StudyMode Member

Sign Up - It's Free