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In: Business and Management

Submitted By CarlLeung
Words 529
Pages 3
The Value chain analysis merely presents the infrastructure, human resources department, technology and development, and procurement and makes up the organization. The value chain is the business activity that creates and gives value to the product or service that buyers purchase. However, the analysis being made up of logistics, operations, outbound logistics, marketing and sales and services all generate profit working as a whole for David Jones and any other organization for that matter. Its main focus is on how David Jones can add value to satisfy customer requirements.

The firm's infrastructure and/or locations are at reasonable standards; all major shopping outlets, city block (Bourke st.) next door to competitor, and currently the new locations in Adelaide that were raised have increased profits dramatically. Through refurbishments and the opening of six new stores, the company increased its selling space by 18% since 1998 and another 22% will be added by 2005. (Course outline, D.J article p2, 2001)

Their HRM departments have strived to train, direct, act as a change agent and merely succeeded in all of these especially in the introduction of "foodchain", a chain of stand-alone food chains. As other competitors have lost out in the past in this area such as Coles Myer and Woolworths. This shows that opening new outlets in different areas other than the retail industry can increase the profits and take the company further. Goddard says the key element to Foodchain is getting the right location, so the rollout will not be rushed. (Course outline, D.J article p2, 2001)

Technology development is merely being "pushed" as David Jones is looking towards e-commerce, even though its first attempt at online selling failed. Launching the first e-commerce business in the Christmas of 1996, Goddard stated that the project was based on technology and not retailing,…...

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