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Value Chain Add to toolbox

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This is a set of activities that you carry out in your company to add value from when your product/service is in raw material stage to the finished product/service for your customer.

The aim of these activities is to create value that is high enough for customers to want to buy and for the value to exceed the cost of these activities. 

In order to help business owners identify what these activities are different areas of adding value can be divided into the following categories:

Primary Business Activities:

  1. PurchasinG
  2. Operations
  3. Outbound Logistics
  4. Marketing and Sales
  5. Service

Support Activities:

  • Procurement – buying raw materials for the product/service
  • Technology development – for research and development as well as the creationg of a product
  • Human resource management – hiring and training employees to design, build and market the product
  • Firm infrastructure – the business structure, planning, management, finance and quality control processes

Organising all of your processes and activities will help you to identify:

  • Which activities you carry out and which are the most important
  • Identify the things your customers value the most
  • Help you to decide which changes to make

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