1. Paper P5 Business Structure Mark Fielding-Pritchard

2. Porters Value Chain

3. Porter’s Value Chain 1 Inbound logisticsOperationsOutbound logisticsMarketing and salesAfter sales

4. Porter’s Value Chain 2 Firm infrastructureTechnology developmentHuman Resource DevelopmentProcurement

5. Advantages of Value Chain  Focuses on each activity  Emphasises critical success factors  Examines primary and support functions  Highlights links between activities

6. Disadvantages of Value Chain  More suited to manufacturing than service  Quantitative analysis, can be time consuming and expensive

7. McKinsey 7s

8. Business Process Re-engineering  BPR is a fundamental rethinking and radical redesign of business processes  Features include  Jobs combined  Workers empowered  Work is performed more logically  Checks are reduced  Reconciliations reduced  Point of contact created

9. BPR b  Work with operation managers to ‘divide up’ processes  Show link between production & IT system  Provide financial information  Show alternative costing approaches  Work on presentation  Provide balance between departments

10. BPR c Advantages  Speed up the manufacturing cycle  Eliminate unnecessary procedures  Reduce cost  Can be spread across several departments  Encourage positive review and criticism

11. BPR c BPR Disadvantages  Cost of making and identifying improvements is greater than benefit of improvement  May be seen as one off process  May engender a culture of change for change’s sake  Department improves but overall performance falls  Too much process reduction may take place  May hit serious resistance from some staff

12. Briggs a  Strategy  Structure  Systems  Staff  Style  Shared values  Skills

13. Briggs b  Strategy  Structure  Systems  Staff  Style  Shared values  Skills

14. Briggs c  Performance indicator- customer satisfaction, staff utilisation, staff retention (not immediately)  Success factors  Attracting qualified local staff  Setting up performance review systems