Which model identifies activities that add value to a final product?

The Value Chain Model is designed specifically to identify and analyze the activities that contribute to the creation of a product or service, helping organizations understand how value is added at each stage of their operation. This model breaks down the overall process into primary and support activities, allowing managers to see where efficiency can be improved and where value can be maximized.

By focusing on each component of the chain, from inbound logistics to marketing and sales, companies can pinpoint areas that enhance customer satisfaction and differentiate them from competitors. The insights gained from this analysis can guide resource allocation and strategic planning to foster a competitive advantage.

In contrast, the other models mentioned have different focuses. The Service-Profit Chain centers on the relationship between employee satisfaction, customer loyalty, and profitability. The Balanced Scorecard provides a broader management framework that translates an organization’s strategic objectives into performance metrics across multiple perspectives, including financial and customer dimensions. Hills Framework, although relevant in certain contexts, does not specifically address value addition in the same structured manner as the Value Chain Model.