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Value chain and Inventory

1. What are the six business functions of the value chain? List and give a short description of each.

2. What are the differences among manufacturing-, merchandising-, and service-sector companies?

3. List and describe the three types of inventory that companies have. Identify which type is held by which sector (i.e. manufacturing, merchandising, or service sectors).

Solution Preview

1. What are the six business functions of the value chain? List and give a short description of each.

Value chain helps in identifying the core competencies of the organization. It helps in reducing the cost and improving the quality of the each of the activity in the value chain. It also helps in improving the focus where non value added activities are removed from the activities of the organization.
www.netmba.com/strategy/value-chain

Six business functions of
R& D
Design
Production
Marketing
Distribution
Service

This involves:

R&D
This involve the cost in researching new markets, products etc.

Design
All the activities related to the product development and design will be considered.

Production
It involves conversion of raw material into purchase

Marketing
It involves matching the products with the needs of customer.

Distribution
This includes channel decisions in order to make the goods available to the consumer

Service
This is after sale service ...

Solution Summary

This explains the concept of value chain, inventory and business forms

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