Importance Of Value Creation In An Organization

Value Creation in the organization:

Value creation is the key component in any organization as it is the only parameter which drives the organization to establish itself in the market and reach the end customers. As customers do not easily trust a company in investing their resources in a company without knowing the background of the company. Value creation is calculated based on the number of customers an organization has in the market. Based on the brand image of the company, growth of the goods and services in the market, business expansion and also the share value in the stock market. Innovation strategies implemented by the organization help to increase the growth of the organization exponentially. If the innovation strategy of the company

Operations management: It is the key segment in the value chain process as it is the foundation for the primary inputs to be processed to final products.

III. External or outbound operations: It is a process of transporting the manufactured goods to the consumers and how to store and sell the products in the market.

IV. Marketing and sales process: It is critical to manage this segment as it is the main stream operations to reach more and more customers based on the marketing strategies and the sales process to offer more discounts to customers.

V. Customer Service: In the current market segments better customer service offers more customers rather than the number of products in the market.

Apart from the above mentioned segments it is also crucial to manage the man power and procurement in order to make sure that the value chain of the process is profitable to the organization in creating value. Technological development and organization infrastructure is also crucial in order to process a better value chain to increase the value creation for the organization in the market.

Building blocks for competitive

Orkut, e-bay and Best Buy are few of the organizations which were popular in the home country but failed in overseas when tried to expand their operations due to poor business strategies and competitors.

Efficiency of Functional level strategies:

Functional level strategies are the basis of existence of any organization as they define the operational and business expansion methods to be implemented in business operations. A functional level strategy to increase sales, to increase production values, to create value in the market and to expand the business operations. Each functional strategy can be implemented separately or they are implemented parallel to obtain the business goal. The business operations of any organization depend upon the operational efficiency of the functional level strategies which strengthen the organizational core values from the base point and reach to the maximum output. A profitable functional strategy considering all the factors internally and externally and by designing a strategy to avoid them all is required for every organization to be efficient in the market and also to gain competitive advantage in the market.

Economies of