Value make their payment. Marketing including Sales is

Value Chain Analysis is a strategic tool
used to analyze the strength and weakness of an organization’s internal
activities. There are value chain and support activities that should be analyzed,
and each activity should be tested against the capabilities of its competitors.
Therefore, firm that competes through differentiated competition will do a
better job than their competitors. If it competes with cost advantage, it will
try to perform internal activities at lower costs than its competitors. A
company can make a profit when it is able to produce goods or provide quality
products at below market prices.


Value chain activities refer
to the activities of an organization that complete produce products and sell,
distribute, and service in the ways that create value or customers.  There are five major activities in Supply-Chain Management
that deal with purchasing, transforming, and managing logistics, which are
necessary for a company to receive raw materials and turn them into finished
products. For example, Perodua has a good relationship
with suppliers and the company provide the Electronic Supplier Information
& Management System (e-SIMS) to reach it supplier. The personnel are well
trained to monitor the transit of goods while all the process is transparency
and monitored through the deployment of Information Technology. There is also having
efficient facility storage for easy storage and retrieval. Distribution is the
activity that connecting the final products to customers who efficiently
handling customers’ orders, select the delivery channel and provides financial
support for customers’ payments. For example, if there has a customer order cars
in Perodua, employees need to process their orders and arrange the customers to
make their payment. Marketing
including Sales is the activities of locating additional customers based
on customer needs. For example, Perodua had conducted
various events and promotions. They also provide clients with financial and
insurance. In addition, they also provide a structured approach to understanding
the needs of customers and the showrooms is available for nationwide including
United Kingdom, Singapore, Brunei and Fuji Island. Operations refer to the
development of employees’ work schedule, design of production process and the
determination of production capacity needs in order to change the raw materials
into finished products. For example, professionalism of
Perodua is implemented in all operations. Besides that, Perodua Manufctuing Sdn
Bhd is the company that responsible for the manufacturing Perodua vehicles and
Perodua Engine Manufacturing Sdn Bhd is responsible for the assembly of all
automobile engines and the manufacture of selected engine components. They also
provide adequate of training to ensure stable source of skilled personnel and
still continuous to drive the improvement in efficiencies of Kanban and Kaizen
system. Lastly is the Follow-up
Service is the activities to increase a product’s value for customers. For example, Perodua keep the product or service working
effectively for the customers after it is sold and delivered. Service
information and service package such as body repair and paint centres are
available for nationwide for the customer. Besides that, the benefits of using
Perodua automotive products are easy availability to find the spare parts.

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Besides that, purchasing,
human resource, and management information systems are support functions which
their activities in the firm that create customers value through producyion,
sales, distribution, and servicing of products in the organization production
process. For example in Perodua Company, procurement
support will find out what resources that firm needs to operate and negotiable
the best price with the supplier. On the other hand, e-SIMS aims to build smart
business partnership effectively and efficiently through supply chain
technology and to develop more opportunities locally and globally. Besides
that, human resource department also jointly manage the the firm’s human
capital such as employs the staff and retraining in ways that create a
capability. For example, Perodua believes that
efficient human resources are vital to achieving the company mission. They
encourage employees work together to increase efficiency and productivity. In
addition, Perodua provides a favourable working environment and rewards their
staff by constantly reviewing their performance and enhance the benefits of company.  Finally is the management information
system that captures and manage the information and knowledge of the entire
firm such as determine the ways to collect and distribute knowledge by linking
relevant information and knowledge to organizational functions. For example, Perodua has invested heavily in IT software for
its research and development activities which the main activities include
localisation of car parts and components, styling and modelling of future
models and facelifts of current product range.