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Business structure and performance management
Business integration
4.1 Introduction
Business integration is an important aspect of business structure.
Rather than focusing on individual parts of the business, the whole process
(from, say, initial order to final delivery and after sales service) should be
considered.
Two possible frameworks:
– Porter’s value chain model
– The McKinsey 7S model.
4.2 Porter’s value chain Firm infrastructure
Support activities Human resource management Margin
Technology development
Procurement
Inbound Outbound Marketing Service
logistics Operations logistics and sales
Primary activities
Based around an organisation’s activities.
Split into primary activities and support (secondary) activities.
Activities should help to drive margin (profit) and should be aligned.
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