Value Chain

System
Presented By-

Sumit Kaushik
14020541056
Tanvi Godbole
14020541057
Ula Javed
14020541058
Utkarsh Nalgundwar
1402054105
Vedant Singh
14020541060
Tarun Kanade
14020541061
Nagendra Battala
14020541064

PORTERS VALUE CHAIN

A value chain is a chain of activities that a firm operating in a specific
industry performs in order to deliver a valuable product or service for the
market.

Value-chain analysis looks at every step a business goes through, from raw
materials to the eventual end-user. The goal is to deliver maximum value for
the least possible total cost.

The way in which value chain activities are performed determines costs and
affects profits, so this tool can help you understand the sources of value for
your organization.

VALUE CHAIN MODEL

(FISH BONE DIAGRAM)

PRIMARY
ACTIVITIES

PRIMARY ACTIVITIES
INBOUND LOGISTICS - concerned with receiving, storing, distributing
inputs.
(e.g. handling of raw materials, warehousing, inventory control)

OPERATIONS - comprise the transformation of the inputs into the final

product form (e.g. production, assembly, and packaging)

OUTBOUND

LOGISTICS

-involve the collecting, storing, and

distributing the product to the buyers . (e.g. processing of orders,
warehousing of finished goods, and delivery)

PRIMARY ACTIVITIES
MARKETING AND SALES -identification of customer needs and
generation of sales.
(e.g. advertising, promotion, distribution)

SERVICE -involves how to maintain the value of the product after it

is purchased.
(e.g. installation, repair, maintenance, and training)

SUPPORT ACTIVITIES

SUPPORT ACTIVITIES
FIRM INFRASTRUCTURE- The activities such as Organization structure, control
system, company culture are categorized under firm infrastructure.

HUMAN RESOURCE MANAGEMENT- Involved in recruiting, hiring, training,

development and compensation.

TECHNOLOGY DEVELOPMENT- These activities are intended to improve the product

and the process, can occur in many parts of the firm.

PROCUREMENT- Concerned with the tasks of purchasing inputs such as raw materials,
equipment, and even labour.

Why this matters?

(Utility)
The value chain is a tool for systematically examining the activities of a firm and how
they interact with one another and affect each others cost and performance.
Profits depends on how well firms execute these activities in the value chain
A firm gains a competitive advantage by performing these activities better or at
lower cost than competitors.
Competitive advantage is gained through cost advantage & through product
differentiation.

Anand Milk Union

Limited

Type-

Cooperative

Industry-

Dairy/FMCG

Founded-

1946 A.D.

Headquarters-

Anand ,Gujrat.

Revenue-

US $ 3.1 billion.

Market share Butter : 85%

Choclates :

<10%

Products Offered

Logistics (Inbound)

Procurement of 13 million lts of milk per day.

Cold storage Network-

Chillers in proximity of villages.

Chilled trucks

insulated rail tankers.

24 cold storage in various locations accross the

country developed by Amul itself.

Operations

Quality check Amul

has its own quality
check mechanisms
Quality
Assurance
Laboratory.

Tetra Pak Group for

packaging.
Milk
packaged here need
not be boiled and is
ready for consumption.

Logistics (Outbound)

Distribution channel ensures that product

reaches every nook and corner of the country.

Creation of cold chain to transport these

products and store it closest to the market
with the required cooling infrastructure.

Amul products are available in over 8,00,000

retail outlets across India through its network
of over 5,000 distributors.

Marketing

Gujrat Cooperative Milk Marketing Federation

Partners with Ogilvy and Mather for thoughtful

advertisements.

Amul has one of the longest running add

campaign in the world with Amul girl as their
mascot.

Advertising and Sales Promotions

To be simple, fresh and innovative.

Emotion based adds on current affairs.

Services

Census of all retail outlets (over 5 lacs) to evaluate

customer perceptions and distribution efficacy of their
network.

Amul relief trust.

Customer feedback for quality management.

Procurement

Milk Collection (Total - 2013-14)-4.79 billion

litres

Milk collection (Daily Average 2013-14)13.18 million litres

Source-2.79 million farmers

Hierarchical system

Gujrat -biggest sourcing point of milk

Other states contributing towards Amul :

Maharashtra, Karnataka, AP, MP, Rajasthan, Orissa,
West Bengal ,J&K and Punjab

Technology Development

AMCUS automatic milk collection system units to automate milk production logistics and to capture
member information , fat content , volume collected and amount payable to each member electronically

Application and utilization of GIS (Geographic Information System)

DISK (dairy info system kiosk) provided by IIM Ahmedabad

support in improving milk collection

VATS network between all levels of distribution network and GCMMF.

TCS was hired by Amul for EIAS enterprise wise integrated Application systems for implementation for
ERP

Amul also connected its zonal offices, regional offices and dairies through VSATs.

Amul actively pursues developments in embryo transfer and cattle breeding in order to improve
cattle quality and increases in milk yields.

to facilitate data analysis and decision

HR Management

All policies have been designed

betterment of farmers in mind

keeping

the

Training for transformational leadership.

Training for farmers emphasizing on need of good

health care of cattle

Medical Assistance Scheme to employees (full fledged

dispensaries at factories),transport facility, meals at
subsidized rates

HRIS Human Resource Information System.

Firm Infrastructure

Quality Management

TQM Model (Total Quality Management) -improvement

in quality of milk in term of acidity and sour milk

Milk Union records show 2% reduction in the amount of

the sour milk received from the union

Improved microbiological quality of upcoming raw milk

to give better shelf life to the product

Regular meetings to discuss various quality concerns.

Financial Management

Weekly forecast of funds in which requirement of each

department is mentioned.

Driven primarily by its desire to be self reliant and thus

depend on internally generated resources for funding is
growth and development.

Amuls financial strategy may thus characterized by two

elements

a.

Retention of surplus to fund growth and development

b.

Limited/no credit i.e all transactions are essentially cash

only

General Overview
Type
: Public
Industry type : Automotive
Founded
: 1945 A.D.
Founder
: Jamsetji Tata
Headquarter : Mumbai, Maharashtra, India
Area Served : Worldwide
Revenue
: USD $ 38.6 billion (FY 2013-14)
Tata Motors entered the passenger vehicle market in 1991 with the
launch of the Tata Sierra, becoming the first Indian manufacturer to
achieve the capability of developing a competitive indigenous
automobile
In 1998, Tata launched the first fully indigenous Indian passenger car,
the Indica, and in 2008 launched the Tata Nano, the world's most
affordable car.

Value Chain & Value

System
Transporters, Convoy
Drivers Association

Dealer Network,
Marketing Research
Firms, Vehicle
Financing

SAP , VCM
Inbound

Outbound
Marketing

Operations
Logistics

Service

Logistics
SAP , CRM - DMS

Suppliers , Contractors
Strategic Alliances

Regional Warehouses,
Dealer Workshops,
Distributors, TASS

Supported By

Multi Location
facilities
Strong leadership
under the aegis of
Tata Sons
Best in class
prototype building
facilities
Technology SAP
Large product
portfolio

Vast pool of
technically
competent engineers
Focus on
development
Technical Training
Centers, Alliance
with technical
Institutes
Focus on
development of
managerial
capabilities MTCs ,
TMTC, executive

Approximately 2%
of the annual profits
of
the
company
invested in research
and development.
Knowledge portal
helps
employees
keep abreast with the
latest technologies.
Extensive
prototype building
and testing facilities.

Global
Sourcing
Team China , a key
destination
for
sourcing
essential
items
like
tires,
power steering units
etc.
Long
term
relationships with a
stable and loyal pool
of suppliers
Group resources
Tata Steel and Tata

Google

Industry: American multinational corporation specializing in Internet Service and

Application Service Provider
Google was founded by Larry Page and Sergey Brin
Revenue : US$ 66 billion
Headquarters : Googleplex, Mountain View, California, U.S
Major Sectors:- Advertising
- Search Engine
- Cloud Computing
Primary Revenue Source: Advertising (97%)

Support Activity

Googles Value
chain
Firm
Infrastructur
e

Clear Vision and Strong Industry Focus,

Good Financing, Legal Support

Human
Resource

Multiskilled people, Ownership and Pride, Global Talent

Technology
Development

Good R&D , Product Development and Innovations ,

Server Technology, Compression Technology, faster response Time

Primary Activity

Procurement

Servers based in all over the globe

Indexing,
From servers all
Compression,
over the globe,
Storage,
Google Database,
Retrieval,
Satellite images
Updation
Inbound
Logistics

Operations

Relevant
Web page
to user

Outbound
Logistics

Good

Web,

Brand

Mobile,

Value

Desktop

Marketing
Services
And
Sales

Googles Advertising Value

chain
Interface

Operatin
g System

Browser

Nexus
Android Google
Google
Offerings Chrome bookChrome OS Chrome

Internet
Access

Google
Fiber

Websites

Ads

Search
AdSense
YouTube Ad Words
Maps Banner Ads
Finance
Google+
Drive

Ad
Technolo
gies

Ad Mob
Double
Click
On2 Tech
Aardvark

Advertise
r
Relations
hips

Google
Analytics

Internet Value
chain