List the primary & secondary activities in Porter's Value Chain Model (1.3, Figure 4.1) - correct answer 'VC' Model depicts primary and secondary
... [Show More] activities of an organization through which value is created:
Support Activities/Secondary: Firm Infrastructure Human Resource Management, Technology Development, Procurement
Primary Activities: Inbound Logistics, Operations, Outbound Logistics, Sales & Marketing, Services
Each lead to MARGIN
According to the value chain model, how can procurement add value? (1.7) - correct answer Model suggests that procurement activities add value by supporting, or providing services, to primary value-adding activities of the org:~
-Proc function may have direct responsibility for inbound and/or outbound logistics/may manage outsourcing of those functions (eg through third party storage + logistics providers)
- Proc supports value addition through operational & service activities by fulfilling the '5 rights of purchasing (- right goods, right quality, right place, right time, right price)#
-It supports marketing + sales by providing product + delivery information, sourcing marketing services (eg advertising agency/printing services) or advising marketing staff on how to source reqs for themselves
Explain the link between relationship processes and added value outcomes (1.16, (1.17) - correct answer Syllabus requires recognition of link between 'relationships as a process' and achievement of 'value added outcomes'. In most obvious interpretation of this: should be able to demonstrate how relationship processes (development of trust; partnering; performance management) contribute to achievement of added-value outcomes (better cost management, reduced waste activities, enhanced profitability, improved quality/service, supply chain innovation, sustainable proc)
Outcome - what an org or proc function is aiming to achieve - and/or what it actually achieves
Processes - means or steps by which desired outcomes are pursued, or which an org follows in order to ensure good practice [Show Less]