1. Outline how Porter’s value chain has been used by Gascoyne Gold and the advantages that have resulted from its implementation.
Porter`s value chain model looks at the primary and secondary activities with in the internal environment of an organization. From the case study it is shown that Gascoyne Gold has used porter`s value chain to reduce costs and to increase customer satisfaction.
Primary activities: * Inbound logistics: It includes all the activities sourced from outside the business. * Plants * Fertilizers * Transportation vehicles * In field vehicles * Suppliers for Gascoyne Gold * Growers were left to concentrate on the growing of best quality tomatoes while the advanced packing shed would take care of the grading and packing of tomatoes. * Outbound logistics: It includes all the activities involved in getting the product to the customers. * Australia wide delivery of tomatoes. * Due to computerized grading, tomatoes reach all parts of Australia according to state`s requirements of redness and sizes of tomato. * Marketing and sales: It involves all the activities related to marketing and sales. * Gascoyne Gold employed a full time marketing middleman which ensures that Gascoyne gold gets the best price for its tomatoes Australia wide. Before Richard Bloomfield (marketing broker) farmers had to send their tomatoes interstate and then wait to hear the best price from the broker, this way brokers sitting far way were cutting profits of the farmers, but now sharefarmers get the best price for their crop.
Secondary activities: Gascoyne Gold only used Technological development as their secondary activity. They built a packing shed which is the largest packing shed in Carnarvon. Key success factor for Gascoyne Gold is using latest technology. Tomatoes are graded using computer which is done in seconds, speeding the process of packing and shipping tomatoes. In old