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Key Concept Exercise: Value chain analysis

Question Preview:

In a 500-word response for all parts, address the following: Step 1: Activity analysis Select a real-life electricity company; either one you are familiar with in your region or one you identify via your own research. Identify an activity or activities that this electricity company could undertake that contributes towards the customer's experience to ensure energy savings on their utility bills. Step 2: Value analysis You will now identify the “value factors”– i.e. the things that customers value in the way that each activity is conducted. List your identified v...

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Question Preview:

In a 500-word response for all parts, address the following: Step 1: Activity analysis Select a real-life electricity company; either one you are familiar with in your region or one you identify via your own research. Identify an activity or activities that this electricity company could undertake that contributes towards the customer's experience to ensure energy savings on their utility bills. Step 2: Value analysis You will now identify the “value factors”– i.e. the things that customers value in the way that each activity is conducted. List your identified value factors in a table, and for each one, detail what needs to be done or changed to provide the best value for each value factor. Step 3: Evaluation and planning Pick out one easily achievable change you could make and identify the challenges associated with developing a plan to make it achievable.

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Solution Preview

Value chain analysis refers to strategic technique used for analysis of firm’s actions. The primary objective is to find out an activity which results in maximum increase in customer’s experience. In this exercise, we discuss about EDF Energy, the largest electricity producer in United Kingdom catering to electricity requirements of around 5.6 million households.

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