Internal Analysis: Rexvilla Inc.

The value chain, made by Michael Porter, is really important to see how a company structure is created. The value chain is constituted by two parts: support activities (firm infrastructure, human resource management, technology development, procurement) and primary activities (inbound logistic, operations, outbound logistic, marketing and sales, service). (Johnson et al. 2011, p.97-99)

Under Mike Porter’s Value Chain analysis every organization has primary activities and support activities. Primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and customer service. Support activities are infrastructure, human resource management, technological development, and procurement. For a conglomerate like Disney creating value is done by leveraging all the outputs of its various segments to benefit the others.

Value chain is a set of activities a company performs in order to provide a valuable solution to their customer problem in their market space or industry. The value chain is made up of primary and support activities. Primary activities being research and development, production, marketing and sales and customer service. These are the primary steps that are required to get a product or service to market to solve the customer problems. Some of the secondary steps include company

Inbound logistics is defined as “the activities of receiving, storing, and disseminating incoming goods or material for use”. (http://www.businessdictionary.com/definition/inbound-logistics.html) Tesla is unique here in comparison to many other large vehicle manufacturing companies since they operate only out of their Fremont facility, while many other companies have clusters of factories and parts suppliers that are nearby. One such example of this is Chrysler in Windsor that manufactures the Pacifica, a large majority of part suppliers are very close by which aids in reduction of costs. Tesla’s need to get parts from greater distances increases the cost of their car production. “Currently, Tesla relies on some 300 suppliers around the world for components. Ed Del Beccaro, senior managing director at

International trade is defined by shipping commodities and finished goods between countries, including both exporting commodities and goods from the U.S. as well as importing commodities and goods from around the world. Logistics is the process of planning, implementing, and controlling the efficient flow of goods and services through the supply chain from producer to consumer. Distribution comprises all freight carriers (water, air, trucking, and intermodal) and warehousing. Until recently, most manufacturing organizations took responsibility for the warehousing

The marketing environment for REI is immensely complicated. While some aspects of marketing, including price, promotion, product and place is within the company’s controls, other external factors are not. Factors external to REI’s control include local and global economic factors, legal and regulatory forces, socio-cultural trends, and technology.

Critically analyze the organization from the systems approach. You should consider the inputs, transformation and output elements of the operation and consider how the system creates value.

Business Dictionary defines internal analysis as “a review of an organization’s strengths and weaknesses that focus on those factors within its domain” (2014). Conducting an internal analysis allows organizations to adapt and change the way they conduct business in order to remain competitive. Internal analysis obtains information from financials, operational and marketing departments to help management determine strategic planning for future growth. In this paper the author will discuss an internal analysis of Kraft Foods.

According to the theory of Jim Riley, Value chain analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. Influential work by Michael Porter suggested that the activities of a business couold be grouped under two headings: Primary and Support activities.

Walmart 32nd St. has two primary warehouses located in Arizona, Buckey and Casa Grande. The store receives from 1 to 2 trucks per day with products ready to be out for sell, and 1 truck with products that are placed in the store’s warehouse. Walmart 32nd St. does not have any other type of inbound logistics because the store does not make any products, the store receives all products ready for sale. The store outbound logistics is basically the waste that the store produces, rarely the store sends out to others Walmart the inventory that has not been selling in Walmart 32nd St. and is selling good in other Walmart locations.

Outbound logistics refers to physical distribution activities such as collecting, storing, and distributing products to buyers and involves (finished goods) warehousing, materials handling, network planning and management, order processing, and

a. How can the company's value-chain activities be better linked to create value for the

Value chain is an approach to know how an item or activities create value for consumers. The most of value provides to consumers, the most of competitive advantage an organization build. In this analysis, value chain model has separated into primary and support activities. Primary activities are included in the physical creation of the item and service. On the other hand, support activities give the inputs and infrastructure that enable the primary activities to happen. This value chain model can be refer to below figure 5.

Value Chain Analysis describes the activities that take place in a business and related to the business core competencies. It can classify by primary activities and supporting activities.

Forward logistics (or conventional logistics) is the regular distribution channel followed by the manufactures from time immemorial. Forward logistics concentrates on the products (goods or services) reaching the consumer end and deals with the line of flow from the manufacturer’s end to the consumer’s end. It deals with the very essence of Supply Chain Management and logistical activities of an organization. It has a significant impact on the primary operations carried out, which act as the basic revenue generating aspect of a business. In this logistical system, the flow is a “one-to-many” type and the forecasting or traceability is quite simple.