Comprehensive Value Chain Engineering Systems Report: Woolsworth

This report conducts a value chain analysis of the Woolsworth Group, an Australian retail company. It begins by describing the "as-is" value chain using Porter's Value Chain Analysis, examining inbound and outbound logistics, operations, marketing, services, and supporting activities. The report identifies three scenarios for value optimization and sharing, focusing on product development, supply chain management, and customer relationship management. Furthermore, it applies Porter's 5 forces model to analyze the competitive landscape and potential risks and benefits associated with the identified scenarios. The analysis aims to improve customer satisfaction, revenue generation, and risk mitigation within the company's operations. The report emphasizes the importance of value creation and its impact on business sustainability and market position.

Value Chain Engineering
Systems
1

2

Executive summery
The report will an effective focus on the actions and the processes that are been followed
by the organisation and will lead to better management of the operations that will support a good
rise in customer satisfaction. It will help in better creation of value and will support a good
handling and mitigation of the risk factors that are related to the value creation. Also, the Porter 5
force model for the different scenario's is been discussed to gain a good insight of the respective
measures.
3

Table of Contents
INTRODUCTION..........................................................................................................................................................3
1MAIN BODY................................................................................................................................................................3
a) Describe “as-is” value chain using Porter’s Value Chain Analysis description...................................................3
b) Identify and describe 3 scenarios where the value can be optimized and shared.................................................6
c) Porter 5 force model of the scenarios that are been discussed in regard to organisation .....................................9
CONCLUSION ........................................................................................................................................................11
REFERENCES..............................................................................................................................................................12
4

Illustration Index
Illustration 1: Porter Value Chain model........................................................................................................................6
Illustration 2: Porter 5 force model...............................................................................................................................12
5

INTRODUCTION
Valuation is core asset for an organization that helps firm to grow its business
operations and activities in a better way. A good value creation will help in gaining a better
revenue generation and productivity. Valuation of company is deeply dependent on its supply,
demands, environment, sustainability and obsolescence (Christopher, 2016.). It will help in better
rise to get expected outcomes from business process that is been followed by firm. For report,
Woolsworth Group is been taken in context. It is an Australian retail company. This report will
lay emphasis on value chain analysis of cited organisation. Various business scenarios are
discussed with risks and benefits that are associated with firm using Porter’s 5 forces model. The
report will cover value chain options and its components with various benefits and treat factors
that are associated with organization’s value chain (Power and Simpson, 2016). This will help in
the effective and better assessment of the risk factors that are been taken in consideration by the
firm. Other than this, they will see through the effective management of the operations and
meeting of targeted objectives in a better way. A good value creation will support an effective
rise in revenue generation of the firm.
MAIN BODY
a) Describe “as-is” value chain using Porter’s Value Chain Analysis description
Porter's Value Chain Analysis will help in better assessment of different valuations that
are been created and is obtained by firm. The proper assessment of value chain will help in better
rise in revenue generation that will help in gaining a good control over operations that will
support in suitable ability of meeting the targeted goals and operations that will support firm to
gain a good sustainability and market position (Monczka And et.al., 2015). Besides this, it will
also provide firm with a competitive advantage and gaining a positive perspective of their
customers and stakeholders. Porter's 5 forces value chain analysis of Woolsworth Ltd will
consist of following structure that will aid firm to have a good idea about their value is as
follows:
6

Porter's Value chain model is as follows:
● Inbound logistics: This will involve processes where firm will receive, store and
distribute inputs internally. Suppliers associated with cited retail firm will help enterprise
to have a good management of operations that will support a good rise in compatibility
and functioning of firm. The retail business entity will see through having a good relation
with its suppliers to generate a good value for its business processes that will help in
suitable rise in functional capacity of firm (Jacobs, Chase and Lummus, 2014). Other
than this, it will support firm to get good quality of finished goods and well as raw
material from their suppliers as logistic approach of firm will be improved and thus will
support in proper meeting of targeted goals and actions of business entity.
● Operations: These are transformational activities that are been taken in consideration by
firm that will support as good rise in compatibility and meeting of targeted goals and
objectives. The operations will involve different sort of activities like market research,
designing product, analysis of feasibility and manufacturing of high quality product and
services that will help in better rise in production capacity and actions of firm. This will
also improve overall satisfaction of firm and thus will support a good growth of wide
operational functions that are been taken in consideration by organisation. This will also
7
Illustration 1: Porter Value Chain model
Sources: Porter Value Chain, 2017

help in suitable meeting of targeted goals and actions by implementing a good plan and
strategy to meet customers and functional departments.
● Outbound logistics: This is process or approach where firm will interact with its
customers to deliver a product or service that is been demanded and look after by
business enterprise (Stadtler, 2015). It is closely associated with inbound logistics
operations that will support a good management of activities and meeting of targeted
goals and operations which are been looked after by organisation. The proper collection
of raw material, is effective storage by retail firm and distribution system that will help
organisation which will give a good rise to functional efficiency of enterprise in a very
effective way. Outbound logistics can take place both internally and externally of cited
retail enterprise. This approach is essential for Woolsworth Ltd. As it will decide proper
customer and stake holder satisfaction level within firm.
● Marketing activities and sales: It is process that is been followed by firm that will be
followed by cited retail entity to promote and sell their products to a greater deal of
customers in order to generate a good number and quality of revenue for organisation. It
will help customers to persuade better rise in capability of organisation that will support a
good rise in capability and meeting of targeted goals and operations that will support
good rise in operational capability of organisation. Marketing of products and services is
deeply based on quality and value that is been offered by company to its customers that
will help firm to generate a good rise in customer satisfaction and meeting of targeted
goals and actions that will support a good communication with them. Various source that
will help Woolsworth Ltd to generate a good valuation in market will include marketing
strategy, quality of product, pricing, placing and timing of delivery.
● Services: This are activities or approaches that takes place in market in an innovative and
better way to get a good rise in customer's satisfaction level and aids in generation of
high quality product or services. This may involve after sales services that will support a
good attaining of the targeted goals and objectives and maintain contentment level of
their buyer and stakeholders (Gereffi and Fernandez-Stark, 2016). The post purchasing
activities involving the assessment of the customer's perception and feedback over the
services, making the required changes, if possible, requested by the client. Other than
8

this, the services will also help the firm to get the insight of customers towards the
product or services offered by the retail firm. It will help the retail enterprise to make
necessary alterations in their goods and services that will help in generation of high value
for the company. It also helps in proper quality assurance that helps in better rise in
customer satisfaction level.
Besides this, Woolsworth Ltd also has certain supporting activities that help in better
execution of the operations and measures that will support a good value creation and getting of
the resources that will support a good rise in their value creation (Okdinawati, Simatupang and
Sunitiyoso, 2017). Some major activities that are been taken in consideration are:
● Procurement(purchasing): it involves the getting of the best quality products and
services that the will help the firm to gain a good valuation of its actions. Te firm will
find the proper vendor and negotiate the prices with them.
● Human resource management: the HRM is one of the major factors that will help the
organisation that will support a good rise in the customer satisfaction level and meeting if
the targeted goals and objectives that are been set by the organisation. As people or the
employees are a good source of valuation for an organisation that will help insignificant
rise in the business of the firm.
● Technological development: as the advancement of technology and its utilization in a
very effective way has become imminent for a business entity, Woolsworth Ltd will see
trough the better rise in customer satisfaction level that will help in suitable rise in
capability and meeting of the operations which will support a good management of the
activities and generation of high valuation from the actions. The usage of technology will
support in minimizing the cost of operations and get a good excellence leading to better
customer satisfaction level.
● Infrastructure: the infrastructure factor plays a very deep role in the actions and value
creation of the company. This will help the firm to maintain and execute the daily
operations, getting the work done and maintain the functionality in a very innovative and
effective way. It involves the accounting, legal operations, administrative actions and
9

generalisation of the task that will facilitate a good utilization of the resources and
generate a high value for the firm (Mangan, Lalwani and Lalwani, 2016).
Thus, this can be said that following of Value chain structure will support good rise in the
customer satisfaction and meeting of targeted goals by the organisation.
b) Identify and describe 3 scenarios where the value can be optimized and shared.
Various scenarios are been taken in consideration by Woolsworth Ltd that will help in the
proper optimization and sharing of the value chain model that is been implemented in the cited
retail organisation that will help in the better value creation and will support a good rise in the
compatibility that will help the firm to handle the business operations and other activities in a
better way. The scenario's will support a good rise in the overall satisfaction level of customer
base of the organisation (Pathak, Hazarika and Pandey, 2015). They will look after the better rise
in customer satisfaction level that will help in good rise in market share and sustainability of the
organisation and aids in proper creation of valuation by the firm. The value chain model will
help in better growth and development of organisation which will support a good rise in
customer satisfaction level and having a good rise in compatibility of the organisation. Besides
this, it will support a good management of the operations that will support a better management
of wide range of business activities which help in better rise in the customer satisfaction level
and achieving of targeted goals and operations that supports a better rise in functional capability
of the firm. As the cited retail entity has not yet implemented the Porter's Value chain model, it
has an opportunity to use various measures that will help in better rise in customer satisfaction
level that will act imminent to ten growth and development of the firm. Some major scenarios
that will help in better rise in compatibility of organisation and will be taken in consideration are:
● Developing the product: the firm will look after the proper implementation of the
Porter's value Chain model that will help the organisation to develop a good quality of
services and meeting of the targeted goals that will help in suitable rise in the satisfaction
level of their customers. Besides this, they will also look after the effective assessment of
available resources and the needs and demands of their customers to gain a good market
share that will help the firm to handle the wide range of business operations in a very
effective way. The effective assessment of the business operations and the value creation
will help in the better rise in functional capability and meeting of the targeted goals and
operations that will help in the suitable rise in the operational capability of the
10

organisation (Lee and Tang, 2017). The functions of the value chain model will help in
generation of a better insight and handling of the wide range of the operations that will
help the firm to grow and develop the distinguished product on the basis of the needs and
requirements of their customers. This will facilitate a good revenue generation and gain a
good rise in the customer satisfaction level that supports a good rise in customer
satisfaction level. This will help the firm to gain a good market position and get a market
position in a better way (Wong, Wong and Boon-itt, 2017). Besides this, it will help in
better utilization of the data that is been received by the organisation from the extensive
market presence and help in the better growth and development of the operations that will
help in the better rise in the customer satisfaction level. Other than this, the organisation
can use this approach of developing a good quality product to meet the customer’s
requirements and come up with some more innovative idea to meet the requirements of
the organisation to handle a wide range of the business activities. This will help the
organisation to sustain in market in a much effective and efficient way and for a longer
period.
● Managing the inventory: the value chain model help in the better handling of the
different operation that help in the better management of the inventory within the
company that help in suitable rise in the satisfaction level of the customers by coming up
with appropriate product and services. This will help in maintaining the stock and get the
knowledge and idea about the available resources with the company. It facilitates a good
management and planning of the utilization of the resources to improve the performance
of the company. The stock management and inventory processing involves the better
management of the operations that are been performed within the organisation. The
effective handling of the operations that will help in effective handling of the business
activities, supporting a good rise in sustainability that supports a good rise in the
operations. Besides this, it helps in the better management of the logistics and the
services that are associated with the company. That will help in developing of the high
quality product and services, which will aid the company to have a good market position
and meeting of the high expectations of the customers related to the company. Besides
this, it also leads to a good amount of the revenue generation that will help in the
effective management of its business activities in the future (Hugos, 2018). Other than
11

this, it will also support a good increase in market value of the company and gain it a
good customer base that will support a good rise in its market sustainability. Other than
this, the maintaining of the inventory will help in better rise in financial stability that will
support a good and effective execution of different business operations that are been
followed by the firm. Other than this, it will help in gaining an efficiency and trust of
their customers and stake holders.
● Filling of store shelves: As the Woolsworth Ltd is widely spread over the Australian
continent; the firm has to look after the better management of the operations that will
support a good maintaining of their stores that will help in better rise in the operations
and revenue generation (Brammer and Walker, 2016). The firm will look after the better
handling of the operations which will support a good rise in handling of a wide variety of
operations. Other than this, the filled and adequate supply of the goods and services will
help the firm to handle the business activities that will help in the superior rise in the
operations and meeting of the targeted goals in a better way. Other than this, the firm will
also see through the effective rise in the operations and gaining a good market share that
will support a better increase in the market share and handling of business activities that
will help the organisation to meet the requirements of the organisations is a better way.
The retail store of the cited entity with all the products required by the customers. This
will not only develop the customers trust level towards the company but will also
support a good rise in the effectiveness of the operations that will help the firm to gain a
significant market share that will help in effective rise in operations. Also, they will help
in the better improvement in the customer satisfaction level. The better assessment of the
various business operations will also support a good handling of vast range of business
operations. This will help in effective improvement in the inventory management services
and the better management of the inbound as well as the outbound logistics that will help
in the efficient handling of the resource’s available to the retail enterprise.
12