by Ross O’Brien
This article picks up where we left off last year in the series on Value Chain Analysis Through a Spiritual Lens. If you have not yet read the previous articles, let me encourage you to read at least the introductory article linked here, as it will set the foundation for this and all the other articles in the series.
As we continue examining the way the value chain analysis can be useful, we need to keep in mind that these activities do not operate in isolation or for their own purposes. The activities in one functional area impact other areas and must be coordinated to help the company achieve its overall strategic objectives.
For example, if a firm takes a differentiation strategy in which its products, services, brand and marketing messages are unique from its competitors, then every functional area must seek to add value to achieving that objective of uniqueness. A company like Apple spends significant money on R&D, quality components and exceptional advertising to set its products apart. Primary activities including inbound logistics (sourcing components), production (quality control processes), and sales and marketing (advertising) must all support this objective, as well as the support activities of procurement (spending the necessary money to ensure differentiation) and human resources management (hiring, training, evaluating and compensating the kind of employees who will maintain the standards of excellence needed).