Sample Thesis Paper
Michael Porter (1985) identified the secondary activities of a value chain (Porter 1998). These secondary activities are discussed below:
- 1. Procurement – The acquisition of different forms of resources and inputs for the firm are included in this phase.
- 2. Human Resource Management –This phase consists of all the activities that are related to training, development, recruitment and compensation of employees.
- 3. Technological Development – All the hardware, software, procedures and technological knowledge that are involved in the process of converting inputs into outputs are used in this phase.
- 4. Infrastructure – This activity consists of departments like finance, legal, public affairs, government relations, quality management etc.
Pros of Value Analysis
There are certain advantages of the value chain analysis (Fliesher & Bensoussan 2002). These advantages are discussed below:
- The value chain analysis helps the organizations in developing a frame work which analyzes the behaviour of costs and the potential sources of differentiation.
- Porter stresses a lot on the importance of regrouping functions into activities and delivers and support products which allows organizations to think about different activities and value chain can be linked with the organizations competitive position.
- In order to analyze the entire organization its overall competitive position must be analyzed. Strengths and weaknesses can be identified with respect to the profiles of direct competitors. Therefore, competitive advantage is derived from the integrated set of decisions that are based on these key activities.