Operation Management Australian Tours Co PTY Ltd Report 2022

Running head: OPERATIONS MANAGEMENT
OPERATIONS MANAGEMENT
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OPERATIONS MANAGEMENT
Introduction
Value chain is considered to the internal activities in which the organization engages
upon transforming the inputs and the outputs. It is considered to be a process through which the
business organization identifies the activities and operations of the business which adds value to
the final product of the organization. These planned activities are analyzed to reduce the cost and
expenditure of the company or increase the differentiation (Antràs and Chor 2013). Value chain
design and structure represents the internal activities and operations of the organization in which
the organization engages with the goods or services produced. These activities directly or
indirectly add value to the final product or service of the organization. The generic value chain
was introduced by M. Porter in the year 1985. The primary activities of the organization includes
the inbound logistics, operations, outbound logistics, marketing and sales and other services of
the others. The support activities of the organization include the technology, machinery and
equipment, the human resource management, procurement of raw materials and the
infrastructure of the organization (Donovan et al. 2015). All these activities result in profit
maximization of the organization. The purpose of this report is identifying the two selected
organization, Woolworths limited which offers goods and other products to the customers and
Australian Tours Co PTY Ltd. which is a tourism and hospitality company. It describes
compares and contrasts the different value chain designs and structure and identifies the
advantages and disadvantages of the value chain design. It determines the operational strategy of
the two contrasting organization. It defines the strategic vision, core strategy and competitive
priorities of the organization for the success of the organization. Lastly it concludes the report by
the viewpoints of the value chain analysis of both the companies and summarizes the report.

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Discussion
Value chain design and structure of Woolworths Limited
Woolworths undertakes a highly rigid and standalone framework of value chain design
and structure. The company assigns equal importance to all the activities of the organization.
However, it is needed to realize the activities and functions that specifically require the same
level of scrutiny (woolworths.com. 2019 ). The initial step of adapting to the Porters Value chain
design is to identify and determine the importance of activities as per the role of the goods of
products in the process of delivery.
Primary activities of Woolworths Limited
The primary activities of Woolworths Limited are directly involved with manufacturing and
selling the produced items and goods to the customers of the organization.
Inbound logistics
The company maintains a strong bonding and builds long term relationship with the suppliers of
the organization which is highly essential to receive, distribute and store the products offered
(woolworths.com. 2019 ). The inbound logistics of the organization enables the company to
focus on each aspect of transformation beginning from raw material to finished product. Other
primary activities in the inbound logistics of the company include acquiring the raw materials,
storing the raw materials and inputs and they distribute the inputs and raw materials as well as
other components to begin the initial stage of starting the production.
Operations of the company
The operations of the company involving processing the raw materials on its arrival and process
the raw materials into final product (woolworths.com. 2019 ). After processing the raw materials