Review The Concepts And Connections 41 Concerning

Review The Information Inconcepts Connections 41 Concerning Boll

Review the information in Concepts & Connections 4.1 concerning Boll & Branch's average costs of producing and selling a king-sized sheet set, and compare this with the representative value chain depicted in Figure 4.1. Then answer the following questions: Which of the company's costs correspond to the primary value chain activities depicted in Figure 4.1? The cost of goods corresponds to the primary value chain activities. It is important to note that the primary activities of value chain involve inbound logistics, operations, outbound logistics, marketing and sales, and service. The primary activities within the value chain of Michael Porter are used to provide a competitive advantage for a company in any of the five activities, so that it has an advantage in the industry in which it operates (Martel and Klibi, 2016).

According to figure 4.1, to benefit from the primary activities of the value chain of Michael Porter, a company must begin with a generic value chain and identify the company-specific activities within the generic value chain. After defining company-specific activities, a company must find patterns and links between activities. This means that, if the value of one activity increases the value of a second activity, there is a link (Blanchard, 2013). A company can then gain a real competitive advantage through the coordination and optimization of related activities. Which of the company's costs correspond to the support activities described in Figure 4.1?

All the support activities identified in figure 4.1 correspond to the firm’s cost. It is important to note that product R&D, technology, and system development all work with what would be significant to the company to produce products faster or proficient at a lower cost. Human resources activities deal with the recruitment, hiring, training, and development of employees required for the company's operations, and the management, accounting, and other activities that may not be directly related to the production of bed sheets are required by the General Administration (Blagun & Il’chuk, 2013). Traditionally, overhead is allocated to a job or function on the basis of direct working hours, machine hours or direct labor dollars in a work order cost system and process cost system (Martel and Klibi, 2016).

Nevertheless, new technologies have changed the manufacturing environment in some companies so that the number of hours worked or dollars earned by employees is no longer good indicators of how much overhead is needed to complete a job or process products through a specific function. Activity-based costs (ABC) are used in these companies to allocate overhead costs for jobs or functions (Blanchard, 2013). What value chain activities might be important in securing or maintaining Boll & Branch's competitive advantage? Explain your answer. The value chain activities that may be valuable in acquiring or securing a competitive advantage for a firm such as Boll & Branch's primary activities are supply chain management, which deals with activities, costs and assets related to the purchase of the raw materials (Raw Cotton) necessary to make the sheets. It also covers operations to convert inputs to the final product. Product R&D, technology, and system development all deal with the way in which the company can produce the product faster or more efficiently and at a lower cost (Martel and Klibi, 2016). Activities related to the procurement of products and materials from external suppliers include resource planning, procurement, negotiation, placement of orders, inbound transport, storage, handling and quality assurance, many of which are responsible for coordinating with suppliers on planning, supply continuity (inventory), coverage and research into new sources or programs. Procurement has recently been recognized as a core source of value, driven largely by the increasing trends to outsource products and services, and the changes in the global ecosystem requiring stronger relationships between buyers and sellers (Blanchard, 2013).

Paper For Above instruction

Analyzing Boll & Branch's cost structure within the context of Porter’s value chain framework reveals how the company's activities contribute to its competitive positioning. The primary and support activities in the value chain are fundamental in understanding where costs are incurred and how they can be managed to create value and sustain a competitive advantage.

Primary activities, such as inbound logistics, operations, outbound logistics, marketing and sales, and after-sales service, directly contribute to the creation and delivery of the product. In Boll & Branch's case, the costs associated with securing raw cotton, processing it into finished sheets, and distributing the final product align with these primary activities. Specifically, inbound logistics encompasses raw material procurement, where costs relate to sourcing quality cotton sustainably, which is critical to the company's brand positioning. Operations involve manufacturing costs, including labor, machinery, and overhead to transform raw materials into finished bedsheets. Outbound logistics cover costs related to warehousing and delivery to customers, ensuring timely and intact product distribution. Marketing and sales activities include advertising, promotional campaigns, and customer engagement efforts, which are essential for differentiating Boll & Branch in a competitive market. Post-sale service, although less prominent in this specific context, involves customer support and return policies that help preserve brand reputation.

Support activities provide the backbone to primary activities, enabling efficiency and innovation. Firm infrastructure, human resource management, technology development, and procurement are central to maintaining an effective value chain. For Boll & Branch, investment in R&D and technology enhances production efficiency and product innovation, aligning with contemporary trends towards sustainable and organic bedding. Human resources activity ensures the recruitment and retention of skilled personnel, which directly impacts product quality and operational efficiency. Procurement activities focus on sourcing high-quality, sustainable raw materials, and fostering strong supplier relationships, which are vital in the company's commitment to ethical sourcing. Activity-based costing (ABC) is particularly relevant here, as it facilitates more accurate allocation of overhead costs, ensuring that the true costs of production activities are understood and managed better, especially in the context of sustainability initiatives and premium branding.

Securing or maintaining Boll & Branch's competitive advantage hinges on optimizing a subset of value chain activities. Supply chain management stands out as paramount, given the importance of sourcing organic cotton and ensuring supply chain transparency—attributes highly valued by consumers and critical to the company's brand promise. Efficient procurement practices reduce costs and mitigate supply risks, reinforcing the company's ability to deliver high-quality products consistently. Moreover, continuous innovation in R&D and technological systems allows Boll & Branch to stay ahead by developing more sustainable manufacturing processes and differentiated product offerings, thus creating barriers to entry for competitors.

Global trends toward sustainability and ethical sourcing make supply chain management and procurement even more critical in this context. Building strong relationships with suppliers that adhere to ethical standards enhances brand loyalty and allows the company to command premium prices. Additionally, investment in process and system development fosters operational efficiencies and supports scalability. In essence, the confluence of efficient supply chain management, ongoing innovation, and strategic procurement not only reduces costs but also reinforces the company's value proposition—delivering high-quality, ethically sourced bedding that commands consumer trust and loyalty.

References

• Blanchard, D. (2013). Supply chain management best practices. Wiley.
• Blagun, I., & Il’chuk, P. (2013). Configuration and coordination strategies of activities in the value chain. Russian Academic Journal, 25(3). https://doi.org/10.15535/41
• Martel, A., & Klibi, W. (2016). Designing Value-Creating Supply Chain Networks. Springer.
• Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
• Christopher, M. (2016). Logistics & Supply Chain Management. Pearson.
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