For thousands of years, businesses in all industries have developed methods by which they create and distribute their products or services, so they can create a profit and grow their efforts. However, it was not until recently that someone managed to visualize the process and create a visual chain analysis so that it could be studied.
What is a Value Chain Analysis?
This is a series of activities that businesses performed so they can deliver their products or services to the marketplace. It is sometimes known as Porter’s Value Chain as first described by Michael Porter in his 1985 best-seller “Competitive Advantage”. Porter saw the idea as a way of observing how businesses view the process of what they do when competing in the marketplace to deliver products or services.
The business or organization will make up a series of subsystems as part of the overall process that includes different inputs, transformations, and outputs when acquiring the resources it needs to create products or provide services which keeps it in business. To create products or services, the business needs to create a system which accounts for the acquisition, management, and output of their efforts so they can make a profit and use the proceeds to continue the chain.
- Management or Oversight
All these elements factor into the value chain PowerPoint diagram which provides a visual take on how it all works. There are primary and supporting activities that are part of the value chain analysis, so it is important to understand how they fit into the system itself in the most accurate way possible.
How It Works
The elements that go together to create a product or service must be one of value if a company is to experience profit. This means that the value that is created must be greater than the cost involved in the creation process. The larger the margin, the greater the profit potential if the value is kept in what is made.
In addition, when you provide greater value for your customers, that provides you with a competitive advantage. Michael Porter proposed in his work that companies can create a general value chain which provides a way of looking at their activities. By seeing how they are connected, a company that better determine the costs involved in maintaining and improving the quality of their work. So, any improvements that can be made are seen in the chain itself so that it can be made more efficient.
The value chain analysis is an excellent tool for strategic management as it breaks down the activities of your company, so you can better identify their value, importance, and efficiency. With this tool, you can see the full picture of what your company does to provide the products or services to the public. It also provides you with the means to make changes based on visualizing the process so that you can make the best-informed decision for your company’s efforts.
The Value Chain Analysis for PowerPoint shows you the different aspects of sales so that you can hit your sales goals by a designated period of time. This PowerPoint template talks about support activations such as technology, procurement, human resource management and firm infrastructure; it also talks about primary activations like inbound sales, operations, outbound logistics, marketing and sales and after sales services. Each one comes with its own color that is coordinated with different blurbs that you can access by clicking on one. When you do, it will isolate them and allow you to elaborate.