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Delivering Customer Value in Business Organizations.

By:   •  October 27, 2012  •  Essay  •  273 Words (2 Pages)  •  1,376 Views

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To understand organization activities which bring a competitive advantage and shareholder value, it is important for a company to separate their business system into a series of value-generating activities referred to as the Value Chain. In Michael Porter's (1985) book Competitive Advantage:"Creating and Sustaining Superior Performance." He introduced a generic value chain model that comprises a sequence of activities found to be similar.

The Value Chain Analysis explains about activities that take place in a business and relates them to analysis of the competitive strength of a business. Michael Porter suggested that the activities of a business could be grouped under two headings which were Primary activities and and Support activities. Whereby Primary activities these are the activities that are directly concerned with delivering a product for instance, component assembling and Support activities are not directly involved in production, they increase efficiency in terms of performance for example the human resource management.



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