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CH-4: TOPIC – ENTERPRISE GROWTH  STRATEGIES


                                                    CODE: 241604010115

               NOTES :

               Meaning: - Add values to goods and services to modify in such way that their utility enhanced and a new
               product of greater value is created for the customers. Two dimensions are :

               FINANCIAL POINT OF VIEW : VALUE OF OUTPUT – VALUE OF INPUT

               MARKETING POINT OF VIEW : ADDITION OF VALUE THAT TURNS A PRODUCT TO A BRANDED PRODUCT


               TWO FACTORS ARE :

               QUANTITATIVE VALUE : VALUE WHICH REPRESENTS THE WILLINGNESS OF THE CUSTOMERS TO PAY FOR
               THE PRODUCT.

               QUALITATIVE VALUE : VALUE WHICH REPRESENTS THE DESIRABILITY OF THE CUSTOMERS.

               Examples are : milk turns to cheese , wood into paper or furniture , packaging – readily eatables etc.

               TYPES OF VALUE ADDITION:

                   1.  Quality added value – Addition for ease of use and convenience
                   2.  Environmental added value – use of methods of production that do not harm the environment
                       (recycle)
                   3.  Cause-related added value – Social marketing strategy where business contributes part of its
                       revenue for a socially desirable cause. TATA, Reliance Etc.
                   4.  Cultural added value - Social marketing strategy with methods of production that are sensitive
                       to the needs of the society (cultural groups)

               MICHAEL PORTER’S VALUE CHAIN MANAGEMENT:

                   •  Primary activities: Inbound logistics, Operations, Outbound logistics, Marketing and sales,
                       Services
                                                               IOOMS
                   •  Support Activities: Procurement, Technological development , HR management , and
                       Infrastructure
                   •  Requirements for value chain management: coordination and collaboration , technology
                       investment ,leadership , Employee/Human Resources , organizational process and
                       Organizational culture & attitudes
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