INSTRUCTIONS: Please RESPOND to this answer from the Point of view as a student. Use credible sources and respond as if you are a manager of a marketing agency. Tell this student what your agency would think of each of these answers:

Value-Chain analysis is important in a company. According to Carpenter and Sanders (2008) “Firms make products or provide services by engaging in many different activities. The basic structure of these activities is embodied in the firm’s value chain. Value-chain activities are of two types, primary activities and support activities. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales and service. Support activities include human resources, accounting and finance operations, technology and procurement”. I believe that both primary and support activities constitute to the growth of the firm. The primary and support activities are interrelated.

In my company, we have the manufacturing plant where the speakers are manufactured. Although this is the primary activity, I believe that making marketing, and financial decisions are equally important because we should know how the company is doing or how much a company can sell.

According to Gresham (n.d) “Value analysis is a methodical approach to sharpening the efficiency and effectiveness of any process. Often, businesses apply it to the processes used in product creation or service delivery. Paramount to the value analysis is the practice of breaking down a process into each individual component and considering ways to improve that component’s value as measured by cost and importance to the process. General Electric developed value analysis during the late 1940s.

Eliminating Costs

A critical advantage to using value analysis is its potential for reducing costs, which is a benefit that permeates all advantages of the system. Because value analysis breaks down a product or service into components, it enables you to analyze each component on its own, evaluating its importance and efficiency


The value analysis process often allows users to root out practices that have grown out of date and can be replaced with more modern approaches. This is particularly beneficial when something has been done the same way for an extended period. Because the old way works and was new when it was instituted, you have had little impetus to make changes.

Design Flaws

Value analysis can uncover design flaws that not only operate inefficiently but also create problems. In the case of a product, this could mean a high rate of malfunctioning items, creating customer complaints and warranty claims that put a strain on personnel and inventory.

Customer Service

Value analysis is oriented to weigh costs and the benefit to customers of a product or service. It forces you to consider every aspect of a process in the context of how it serves the customer, which could be a consumer or another business. This means that each step in the process is scrutinized and questioned from the perspective of the benefit that it provides the customer”.


M. Carpenter & Wm. Sanders (2008). Strategic Management. A Dynamic Perspective. Upper Saddle River, N.J: Prentice Hall.

Gresham, T (n.d), What are the benefits of value analysis, Retrieved from

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