This framework is used to understand the difference in cultures across countries and to discern the ways that business is done across different cultures. It helps to distinguish among different national cultures, the dimensions of cultures and the impact on business. Hofstede has defined six categories that define culture: 1. Power Distance Index 2. Collectivism vs Individualism 3. Uncertainty Avoidance Index 4. Femininity vs Masculinity 5. Short – term orientation vs Long - term Orientation 6. Restraint vs Indulgence 1. Power Distance : - The degree people are comfortable with influencing upwards. Accept inequality in distribution of power. High power distance index indicates about the culture which power difference and accepts inequality, it shows high respect for authority and rank, also encourages bureaucracy. Low power distance index reflects about the culture which encouraged flat and decentralized organizational structure. Emphasized on p
Value Chain- It comprises of all the
activities that a firm has to perform to deliver valuable product or
service.
Value Chain Analysis - It is a process which allows a company to examine
all the activities that company uses to create product or service. VCA helps to
increase productivity, reduction in cost, differentiation etc. It divided in
two activities Primary and Secondary. Value chain analysis
helps a company understands and know better how it adds value to company and
how subsequently, how it can sell its product or service for more than the cost
of which is adding the value, which leads towards generating a profit margin.
In other words, if they are run efficiently and effectively, the value obtained
should exceed the costs of running them i.e. consumer should come back to the
organisation and transact and interactr freely and willingly. Introduced by Michael Porter in
1980 , according to his it is conceptual notion which show how a value chain
add value to the company’s success.
Primary - Activities which directly impact production, sales,
maintenance, and supply of the product or service, which make goods available
for the operational work There five primary activities.
INBOUND LOGISTICS - It involves the receiving, transportation,
warehousing, storing of raw material. Relationship with the supplier is
the key factor make strong supply chain.
OPERATION - Comprises of all the activities which involves in the
conversion of raw material into finished goods for sales. Assembling, packaging,
machining are some of the activities which comes under the operation.
OUTBOUND - As per the name it is related to all the activities of
delivering, collecting, storing, the product to the customer. When the
product has been ready or manufactured, it being send to the distribution centres,
retailers, wholesalers.
Marketing & Sales - Related to the all the process of marketing
which are being used to put the product in the market. Also managing customer
relationships. Perform promotion, sales, public relation, advertising,
market research and many more comes under this activity. These activities are
being performed to make customer aware about product and service
Firm infrastructure - Involves those activities which support
organization to maintain daily operation. Also managing company’s support
system , also maintain daily operations. Necessary infrastructure activities consist
of general management administrative, legal, accounting etc.
Human Resource Management – Involves all the activities that
organization performs to manage human resource, like hires, recruit, trains, rewards,
motivate etc. Basically it refers to all those activities of managing work
force within organization. People or human resource are asset to the company so
that they should be manage efficiently to get benefit from them.
Technology Development - Activities which equipped the firm with technology , help to develop the product , processing and managing , also protecting company’s database. It can minimize the cost and help company to match pace with new trends.
Procurement - All the activities involves sourcing or finding the raw
material, supplier and resource for a product. All the necessary material,
machinery and other items which are being used to perform secondary activities.
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