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Md. Matiur Rahman
ID : 133-23-3661
Sec: A ( L2T3)
Department of Textile Engineering
Daffodil International University
Presentation Topic
Value Chain
Value Chain:
A value chain is a set of activities that a firm
operating in a specific industry performs in order to
deliver a valuable Product or service for the
market.
The concept comes from business management
and was first described and popularized by Michael
Porter in1985.
Book - Competitive Advantage : Creating and
Sustaining Superior Performance
Porter’s Value Chain
Primary Activities
Inbound Logistics - involve relationships with suppliers and
include all the activities required to receive, store, and
disseminate inputs.
Operations - are all the activities required to transform inputs
into outputs (products and services).
Outbound Logistics - include all the activities required to
collect, store, and distribute the output.
Marketing and Sales - activities inform buyers about
products and services, induce buyers to purchase them, and
facilitate their purchase.
Service - includes all the activities required to keep the
product or service working effectively for the buyer after it is
sold and delivered.
Supply Activities ( Secondary)
Procurement - is the acquisition of inputs, or resources, for
the firm.
Human Resource management - consists of all activities
involved in recruiting, hiring, training, developing,
compensating and (if necessary) dismissing or laying off
personnel.
Technological Development - pertains to the equipment,
hardware, software, procedures and technical knowledge
brought to bear in the firm's transformation of inputs into
outputs.
Infrastructure - serves the company's needs and ties its
various parts together, it consists of functions or departments
such as accounting, legal, finance, planning, public affairs,
government relations, quality assurance and general
management.
Value Chain
.Physical value chain
.virtual value chain
.combined value chain
Global value chains (GVCs)
.Cross border / cross region value
chains
.Global value chains (GVCs) in
development
Value Chain: Knit
Almost complete value chain.
Some of the factories fully integrated ;
spinning to finished garment.
Core strength is backward linkage.
95% knit fabric produced locally.
Cumulative average growth of
knitwear is 27%.
Value chain : Woven
Only a few woven factories thar offer
quality product.
Majority fabrics has to be imported-
higher purchasing cost dependency
on external supplier, pricing
disadvantages, No GSP facilities for
imported fabrics.
Annual consumption of fabric is 3
billion yards.
Consumption increasing 20% per
year.