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Hi,
I am confused by the solution for question 2 from the Dec 09 exam (Independent Living) and was wondering why the examiner has included “orders are placed by telephone or through the website” under the heading of Outbound Logistics. Should this be under Marketing and Sales? In part b of this question he talks about the process of ordering (ie online catalogue and telephone ordering) in detail again under the Marketing and Sales heading
Has the examiner made a mistake or do I totally misunderstand the Value Chain model. Would I lose marks by talking about the orders etc under the Sales and Marketing heading. I have not seen value chain applied in the way, in any other questions.
Thanks
The Marketing and Sales function is obviously connected to the Outbound Logistics function. In fact, M&S would come before OL in the natural sequence of events, thought in the value chain is shown after usually.
It is not clear where one function stops and the next begins. The internet could be used for marketing and that could generate sales, which in a well-integrated system would seamlessly lead to outbound logistics – the physical picking, packing and distribution of the goods.
What we have identified here is a linkage ie that the different processes on the VC are NOT independent. For example, HR management will influence operations and other areas. Better training (HR) will lead to better operations and lower after sales service costs.
You will not lose marks by discussing something that a company does under a different heading. The important thing to identify is how the company adds value ie something that customers are willing to pay for. In fact, the wrong approach is to look at each function as a ‘silo’ isolated from other functions.
Hope that helps.
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