Skip to main content

How to create value in business


Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Hello readers, today I will be looking at how to create value in business. The value chain will be used to explain how to create value in business. The primary activities goes from the inbound logistics to operations to outbound logistics to marketing and sales to services.

Inbound logistics
This has to do with bringing in goods into the organisation. In a manufacturing organisation you will be bringing in raw materials. Whether you are manufacturing or not they must be of good quality. The goods must be delivered and stored in a way that does not cause any defect to it. This will contribute to the value you are planning to create.

Operations
Basically, this has to do with the daily activities of an organisation. Thus, it is the process whereby raw materials, labor and capital are converted into end products. You must ensure that all the products are free of defects. That is the goal and that will help you create value.

Outbound logistics
Another way this value can be created is through fast and efficient forms of delivery. If products are going to be delivered to houses, you should use the fastest possible medium and it should be delivered with no defects. If you are taking goods to stores it must be delivered on time. You should read this article on inventories. Stores should be located close to your customers. All of that will contribute to the value creation.

Marketing and Sales
The way you market your product must reflect how you want your business to be perceived by customers. You also build the reputation of your company through that medium. Thus, value can also be created.

Services
This is a medium that can be used to maintain value after goods must have been sold to your customers. A one year warranty can really add value, technical support can also add value and others.

All of these activities discussed above will lead to the creation of value, thus, all of them must be treated with caution.

Keep checking my blog regularly, cheers!


Comments

Popular posts from this blog

Eid Mubarak

Happy Eid ul Fitri

Understanding the buyers behaviour

Hello readers, today I will be writing about buyers behaviour when it comes to purchasing products (goods and services). I hope your week has been good. A buyer is an individual that makes a purchase. That purchase can be influenced by his/her emotions or his/her rational mind.

For your marketing strategy to be successful you have to truly understand the buying behaviour of your customers. Some customers buy goods based on trust and loyalty which falls into the emotional reasons. Thus, you have to build trust between your customers and yourself so they can return back to you. Trust is built when you offer good quality for reasonable prices.

Some products are bought regularly while some products are purchased seasonally. If your products fall into the seasonal category, you should only purchase them to be resold during that season. At times buyers purchase products on behalf of another individual. In that situation, you have to capture the mind of both the buyer and the actual person tha…