Value Chain (Porter's model) Infrastructure Activities: Planning, Finance, MIS, Legal Services Technology: Research, Development and Design Human Resource Management and Development Margin Purchasing Dealer Inventory Warehousing Sales Support holding Production and and and Material Distribution Marketing Customer handling serviceValue chain (cont) - Primary activities include purchasing, production, warehousing, marketing and customer service after sales. - Supporting activities include all other factors such as human resources, R&D, and financial support. IFE - ___S___i_mi_l_a__r____t__o EFE: purpose: evaluate internal strengths and weaknesses - Steps for IFE analysis 1. List internal factors Both weaknesses and strengths (use value chain, functions, and components as guidelines) 2. Ten to twenty factors 3. Assign relative weights to each factor (how important to the industry) Weight (0 to 1) Sum=1 Group consensus IFE (cont) Assign ratings to each factor (company) 1 or 2 for weaknesses with 1=major weakness, and 2=minor weakness 3 or 4 for strengths with 3=minor strength, and 4=major strength Multiply weights and ratings Sum the products and interpret