Internal Analysis: Rexvilla Inc. Inbound Logistics

Insight, Strategies and Solutions – By having an insight into organisations, you are able to spot opportunities and are able to turn them into strategies and solutions. By doing this you are able to meet organisational needs now and in the future.

Costco performs a number of tasks in each primary value chain activity. For inbound logistics Costco performs tasks relating to quality control, receiving shipments of products, controlling raw materials, and schedule supply shipments. An example is Costco choosing what products to receive and sell to their customers. Costco wants to sell quality goods, so it is inbound logistics jobs to choose what products to sell. They also help schedule when Costco stores should receive more shipments of products, and watching over the raw materials that go into the business.

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

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.

The basic principle in defining the value chain, according to Michael Porter (Porter, 1985), is that the activities include a variety of disaggregations from the below three perspectives. First, they have different economics, implying that these activities are functioning in different segments of the market. Second, even though the economics differentiation is not that evident, isolated activities should have a potential impact for it. Third, value-adding activities have significant input scale.

The internal analysis of a company is an examination of where value is added in the business process and the strategies used to attain a sustainable competitive advantage. The internal analysis can be broken down into two key areas:

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

The internal assessment will focus of four internal business areas; financial, organizational structure, market analysis and company strategies.

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.

The value chain analysis (shown in appendix) was also generated by Michael Porter. This model is referred to “identifying ways to increase the efficiency of the chain” (Investopedia, n.d.). Furthermore, the overall objective is to produce maximum value with minimum total cost and establish a competitive advantage.

Within the value chain there are two kind of activity, first one is Primary activity as they are directly related to the product or services that a firm produces to the customers and the other one is secondary activity, these are related to the activities that are within the company infrastructure that assist in the company’s primary activity.

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.

This report will analyze the Supply Chain and Logistics Industry in the United Arab Emirates during the last five years. The tools and techniques used for this analysis shall be PESTEL and PORTER’S 5 forces. Further this report shall discuss about the Industry type based on the competition existing in the market and its current phase in the Industry cycle.