Question: Woolsworth Group is an Australian retail company. This is the report which emphasis on value chain analysis of cited organisation. The report help in developing understanding about the topics.
- Define "as-is" value chain Porter's Value Chain Analysis
- Examine 3 scenarios where the value can be used as well as share.
- Discussion about Porter's Force model
Valuation is core asset for an organization that helps firm to grow its business operations and activities in a better way. A good value creation will help in gaining a better revenue generation and productivity. Valuation of company is deeply dependent on its supply, demands, environment, sustainability and obsolescence (Christopher, 2016.). It will help in better rise to get expected outcomes from business process that is been followed by firm. For report, Woolsworth Group is been taken in context. It is an Australian retail company. This report will lay emphasis on value chain analysis of cited organisation. Various business scenarios are discussed with risks and benefits that are associated with firm using Porter’s 5 forces model. The report will cover value chain options and its components with various benefits and treat factors that are associated with organization’s value chain (Power and Simpson, 2016). This will help in the effective and better assessment of the risk factors that are been taken in consideration by the firm. Other than this, they will see through the effective management of the operations and meeting of targeted objectives in a better way. A good value creation will support an effective rise in revenue generation of the firm.
a) Describe “as-is” value chain using Porter’s Value Chain Analysis description
Porter's Value Chain Analysis will help in better assessment of different valuations that are been created and is obtained by firm. The proper assessment of value chain will help in better rise in revenue generation that will help in gaining a good control over operations that will support in suitable ability of meeting the targeted goals and operations that will support firm to gain a good sustainability and market position (Monczka And et.al., 2015). Besides this, it will also provide firm with a competitive advantage and gaining a positive perspective of their customers and stakeholders. Porter's 5 forces value chain analysis of Woolsworth Ltd will consist of following structure that will aid firm to have a good idea about their value is as follows:
Porter's Value chain model is as follows:
- Inbound logistics: This will involve processes where firm will receive, store and distribute inputs internally. Suppliers associated with cited retail firm will help enterprise to have a good management of operations that will support a good rise in compatibility and functioning of firm. The retail business entity will see through having a good relation with its suppliers to generate a good value for its business processes that will help in suitable rise in functional capacity of firm (Jacobs, Chase and Lummus, 2014). Other than this, it will support firm to get good quality of finished goods and well as raw material from their suppliers as logistic approach of firm will be improved and thus will support in proper meeting of targeted goals and actions of business entity.
- Operations: These are transformational activities that are been taken in consideration by firm that will support as good rise in compatibility and meeting of targeted goals and objectives. The operations will involve different sort of activities like market research, designing product, analysis of feasibility and manufacturing of high quality product and services that will help in better rise in production capacity and actions of firm. This will also improve overall satisfaction of firm and thus will support a good growth of wide operational functions that are been taken in consideration by organisation. This will also help in suitable meeting of targeted goals and actions by implementing a good plan and strategy to meet customers and functional departments.
- Outbound logistics: This is process or approach where firm will interact with its customers to deliver a product or service that is been demanded and look after by business enterprise (Stadtler, 2015). It is closely associated with inbound logistics operations that will support a good management of activities and meeting of targeted goals and operations which are been looked after by organisation. The proper collection of raw material, is effective storage by retail firm and distribution system that will help organisation which will give a good rise to functional efficiency of enterprise in a very effective way. Outbound logistics can take place both internally and externally of cited retail enterprise. This approach is essential for Woolsworth Ltd. As it will decide proper customer and stake holder satisfaction level within firm.
- Marketing activities and sales: It is process that is been followed by firm that will be followed by cited retail entity to promote and sell their products to a greater deal of customers in order to generate a good number and quality of revenue for organisation. It will help customers to persuade better rise in capability of organisation that will support a good rise in capability and meeting of targeted goals and operations that will support good rise in operational capability of organisation. Marketing of products and services is deeply based on quality and value that is been offered by company to its customers that will help firm to generate a good rise in customer satisfaction and meeting of targeted goals and actions that will support a good communication with them. Various source that will help Woolsworth Ltd to generate a good valuation in market will include marketing strategy, quality of product, pricing, placing and timing of delivery.
- Services: This are activities or approaches that takes place in market in an innovative and better way to get a good rise in customer's satisfaction level and aids in generation of high quality product or services. This may involve after sales services that will support a good attaining of the targeted goals and objectives and maintain contentment level of their buyer and stakeholders (Gereffi and Fernandez-Stark, 2016). The post purchasing activities involving the assessment of the customer's perception and feedback over the services, making the required changes, if possible, requested by the client. Other than this, the services will also help the firm to get the insight of customers towards the product or services offered by the retail firm. It will help the retail enterprise to make necessary alterations in their goods and services that will help in generation of high value for the company. It also helps in proper quality assurance that helps in better rise in customer satisfaction level.
Besides this, Woolsworth Ltd also has certain supporting activities that help in better execution of the operations and measures that will support a good value creation and getting of the resources that will support a good rise in their value creation (Okdinawati, Simatupang and Sunitiyoso, 2017). Some major activities that are been taken in consideration are:
- Procurement(purchasing): it involves the getting of the best quality products and services that the will help the firm to gain a good valuation of its actions. Te firm will find the proper vendor and negotiate the prices with them.
- Human resource management: the HRM is one of the major factors that will help the organisation that will support a good rise in the customer satisfaction level and meeting if the targeted goals and objectives that are been set by the organisation. As people or the employees are a good source of valuation for an organisation that will help insignificant rise in the business of the firm.
- Technological development: as the advancement of technology and its utilization in a very effective way has become imminent for a business entity, Woolsworth Ltd will see trough the better rise in customer satisfaction level that will help in suitable rise in capability and meeting of the operations which will support a good management of the activities and generation of high valuation from the actions. The usage of technology will support in minimizing the cost of operations and get a good excellence leading to better customer satisfaction level.
- Infrastructure: the infrastructure factor plays a very deep role in the actions and value creation of the company. This will help the firm to maintain and execute the daily operations, getting the work done and maintain the functionality in a very innovative and effective way. It involves the accounting, legal operations, administrative actions and generalisation of the task that will facilitate a good utilization of the resources and generate a high value for the firm (Mangan, Lalwani and Lalwani, 2016).