Production Company in Australia Producing Food Containers

Question: Discuss about theProduction Company in Australia for Producing Food Containers. Answer: Introduction: Value chain basically is how from a series of activities how customers derive small values and this summation of value leads to a complete product or a service. On a scale of 10 to 10 i consider value chain framework to be a 8 as it is a top priority for the success of a production company. Generally a companys profit ,margin can be determined by subtracting the cost of creating any value from the value which is created ( Editorial Team, 2013). Food container producing companies in Australia acquires raw materials and creates a value out of it.There are two categories of such activities - primary and support(Porter, 1985). Primary Activities Logistics inbound Handling of materials Operational tracking Oder process and distribution channels Sales and promotion Repair or installation services Support Activities:- Purchase of raw materials needed for production Developing better technology for efficient work at reduced costs HR management of firm Infrastructural development of firm The value chain approach is used for identifying profit margins and to know about the expenses involved in achieving these profit margins. The strength of such an analysis are:- the process used to create a value by the firm is understood total cost needed for producing containers is determined cost drivers for value creation process is determined links between processes are determined opportunities are evaluated The food container producing companies have successfully lowered costs by making use of disposable materials in these containers. The use and throw policy has helped lower costs to a great extent. Yet it is not affecting demand as people find it comfortable to use and throw such food containers. One of the strategy used by the food container company in Australia is selling food container and drinking container together. Thus, both these are able to create two different values at a higher cost. Not only the purpose of teach is different but together it is able to fetch more sales. However, if bought separately the cost is much higher than the combination purchase. Value chain has created strategies to sell additional product with the actual prodcut sold by the company. For better efficiency customer feedbacks are taken when purchase activities happen. That way it helps in understanding the needs of customer which can be used while the company operates. References Editorial Team., 92013), Porter's Value Chain, Retrieved from: https://www.mindtools.com/pages/article/newSTR_66.htm Michael., P. (1985), The Competitive Advantage of Nations New York: Free PRess