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Porter's Value Chain

Decent Essays

2. a) The value chain
In order to determine the advantages of TMF in the competitive environment, Michael Porter’s value chain is used. Porter states that this competitive advantage can be obtained by lowering the production costs and add value to the products or services. The chain is divided into primary and support activities. The primary activities add value directly to the organisation, where the support activities can add value indirectly to the company (Mind Tools, n.d.).

Primary activities
Inbound logistics – The processes related to the storage, purchase, receiving and distributing of goods internally.

Operations – This process is basically the transformation from input to output. This is the process where the value is created, …show more content…

TMF’s overall image, is a full-service media agency that optimises communication for their client’s specific needs and budget. But according to Porter (Marcus & van Dam, 2012), it is not only about the overall image, it is especially about the smaller components that add value to the company. For instance the service activities of TMF, which are of considerably high standards. They are focussed on the customers needs and budget, and guide them through the whole process. TMF’s fits in the differentiation strategy of Porter, because they differ in operating with their These activities add value to TMF.
The company is considering specialising in digital and social media. Tasks in digital and social media are currently being outsourced, in order to retain TMF’s customers. If TMF could fulfill these tasks themselves, they would create an added value and reduce long-term costs.
Huib, Cees and Dennis van Balen add significant value to TMF as well. Huib is operating in the industry for a long while, as Cees and Dennis are appreciated in particular. This is an added value that is hard to achieve. Huib’s interest in HRM and course of action have ensured this value to be …show more content…

To determine what organisational culture is present in the company, every member of the management team is scored according to the information.

Huib van Balen is leading the organisation in a personal way. As a CEO, he is operating towards the person organisation culture, as he launches friday afternoon drink and lunch sessions, to receive input from his colleagues. This is not only for oriented to the employees, but also to the company itself, because this input from the team, is reinforcing his ideas about TMF. Huib is aware of the strengths and weaknesses of his management team, which is aiming at the person culture.

Cees van Balen is operating differently, due to the fact that he is leading a department. Cees is more focussed on the tasks and work hard. As a result, they achieve to reach the highest staff turnover. However, his employees do not always feel involved in the process and decision making. This is a result of Cees behaving like ‘The Boss’. A preference in the power and task culture can be measured.

According to the given information (van Noord, 2014), This arises from a slight preference in role

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