Page 59 - Electronic Commerce

Chapter 1

Figure 1-9 shows a value chain for a strategic business unit, including both primary and
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supporting activities. These value chain activities will occur in some form in any strategic
business unit.

Primary activities performed in a strategic business unit
Manufacture Provide after-sale
Design product or Deliver service and
create service support

Purchase
materials and
supplies Market
and sell
Identify
customers

Learning
Supporting activities performed by the central corporate organization
Finance and Human Technology
administration resource development Cengage
activities activities activities
2015
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FIGURE 1-9 Value chain for a strategic business unit

The left-to-right flow in Figure 1-9 does not imply a strict time sequence for these
processes. For example, a business unit might engage in marketing activities before
purchasing materials and supplies. Each strategic business unit conducts the following
primary activities:
• Design: activities that take a product from concept to manufacturing, includ-
ing concept research, engineering, and test marketing
• Identify customers: activities that help the firm find new customers and new
ways to serve existing customers, including market research and customer
satisfaction surveys
• Purchase materials and supplies: procurement activities, including vendor
selection, vendor qualification, negotiating long-term supply contracts, and
monitoring quality and timeliness of delivery
• Manufacture product or create service: activities that transform materials
and labor into finished products, including fabricating, assembling, finishing,
testing, and packaging
• Market and sell: activities that give buyers a way to purchase and that pro-
vide inducements for them to do so, including advertising, promoting,

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