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Organization Value Chain

What is organization's value chain? What are some examples of some elements of the value chain in an organization with which you are familiar. Why is it important to review an organization's value chain?

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This concept is introduced by Michael Porter. The primary value chain activities are:

Inbound Logistics: the receipt of raw material and its issuance to the manufacturing
Operations: the processes of transforming inputs into finished products and services.
Outbound Logistics: the warehousing and distribution of finished goods.
Marketing & Sales: the identification of customer needs and the generation of sales.
Service: the support of customers after the products and services are sold to them.

Value chain of StarBucks
Starbucks is a large multinational chain of coffee shops with corporate headquarters in Seattle, Washington. The company was in part named after Starbuck, a character in Moby Dick, and its insignia is a stylized cartoon siren. It is more popular among youth. Besides coffee it also serves other drinks, both hot and cold, and pastries. The company has 130,000 employees worldwide at 11,377 stores in 37 countries and plans to grow to 30,000 stores globally. It has about 80 corporate stores in Michigan. Starbucks is opening stores at a rate of five a day and saw its sales rise 20% last year to $6.4 ...

Solution Summary

This solution includes a definition of 'organization value chain' by Michael Porter and uses the real-life example of Starbucks to show how they use elements in an organization value chain. All references used are included.