1. Export Planning How to write an international marketing plan
Chapter 5: Value chain and supply chain setup
Internationalisation of the firm

3. Export Planning Learning objectives (learning tasks) Ch. 5
At the end of the chapter you are able to:
Describe a supply chain process and you understand why you can use
the supply chain as a competitive weapon;
Apply the value chain model of Porter;
3. Name and explain the different business process models;
Identify key processes relevant for internationalisation within a company;
5. Analyse the existing supply chain set up of a company.

5. Export Planning Supply chain set up in existing markets Example
Source: R. Hüfler a.o., students HAN University

6. Export Planning Operational elements to create a competitive advantage
Quality
On-time/
Speed
Reliability
Flexibility/
Responsiveness
Costs
Source: Leeman, 2009

7. Export Planning Generic supply chain strategies Low Supply Uncertainty
High Supply
Low Demand
High Demand
Efficiency / Lean
Reliability and cost orientation to fulfill Make-to-Inventory
Risk Hedging
Reliable, flexible and on-time
to fulfill Make-to-Inventory
Responsive
Responsive and speed to fulfill
Make-to-Order
Agile
Responsive and flexible to customer needs and Make-to-Order

8. Export Planning Value chain model of Porter Margin
Value Chain of Porter
Infrastructure
Human Resource Mgt
Secondary activities
Technology Development
Procurement / Sourcing
Margin
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
And
Sales
Service
Primary activities

9. Export Planning Value chain model of Porter Value Chain
Main tool for identifying ways to create more customer value;
Every firm consists of a collection of activities performed to design, produce,
market, deliver and support the firm‘s products;
The value chain breaks the firm into nine value-creating activities
to understand the behaviour of costs in the specific business and
the potential sources of competitive differentiation;
The nine value-creating activities include 5 primary and 4 support activities.

10. Export Planning Value chain model of Porter Value Chain
The firm‘s success depends not only on how well each department performs
its work, but also on how well the activities of various departments are coordinated.
Focus on Core Business Processes
- Product development process
- Inventory management process
- Order-to-payment process
- Customer service process
Successful companies develop superior capabilities in managing these and other
core processes. In turn, mastering core business processes gives these
companies a substantial competitive edge.
Source: Kotler

11. Export Planning Example: Supply chain set up for PepsiCo Value Chain
Support activities: Procurement and therewith cost is directly connected to (end) profit.
Primary activities: Product availability and product acceptance are critical success factors.
Supply Chain set up PepsiCo
Suppliers
Bottler
Distributor
Customers and Consumers
PepsiCo concentrate plant
Bottling plants
Retail stores/warehouses
Plant Warehouses/ Distribution Center
Ingredi-ents
Transport
Consumers
Packa-ging
Big shops

12. Export Planning Value chain model of Porter Value Chain
- Identifying capabilities and competitive differentiators;
- Output value > Cost value = Margin
Drivers of Value Creation
1. Cost percentage
2. Relative cost compared to the competition
3. Factors influencing the cost
4. Sources of value differentiation
5. Value differentiation compared to the competition

19. Export Planning
Example: Supply chain set up for Nestlé

21. Export Planning Chapter review questions (10 min.)
Which three flows are parts of supply chain management?
What are the five operational elements to create a competitive environment?
Name four generic supply chain strategies to manage supply and demand.
Explain the value chain model of Porter. What is the use of this model?
Why is the choice of the right business process model so important?
Explain the meaning of a push-principle and pull-principle is. Give examples.
Make a drawing of a supply chain set up for a company of your choice.