Value chain

Question 1

What are the elements of the value chain?

Answer 1

Raw Materials > > > Operations > > > Delivery > > > Marketing & Sales > > > Service

Question 2

Raw materials

Answer 2

Raw materials

• inbound logistics: receiving materials into the warehouse,
• relationships with suppliers,
• “just in time” (JIT) delivery
  
  • Designed to reduce carrying costs to a minimum.
  • Low inventory 4 immediate needs

Question 3

Operations

Answer 3

Operations

• processing raw materials into the product through the use of capital, equipment, and labor

Question 4

Delivery

Answer 4

Delivery

• warehousing and distribution channels

Question 5

Marketing and Sales

Answer 5

Marketing and Sales:

• marketing strategy
• ID of customerbase
• Cost of customer acquisition
• Sales force issues, e.g. commission, company car.

Question 6

Service

Answer 6

Service:

• customers support
• customer retention (It’s cheaper to retain a customer than to go out and bring in a new one.)