Principles of Management Lecture 3 - Value Chain Management

The coordinated series or sequence of functional activities necessary to transform inputs such as new product concepts, raw materials, component parts, or professional skills into the finished goods or services customers value and want to buy

The development of a set of functional-level strategies that support a company’s business-level strategy and strengthen its competitive advantage

• Product development function
• Marketing function

Inputs: new product ideas, marketing research, component parts

• Materials management function
• Production function

Changed into (conversion): People's ability and knowledge, machines, computers, functional skills