Value Chain Analysis A value chain is a chain of activities for a firm operating in a specific indu stry. The business unit is the appropriate level for construction a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of added values of all activities. Novartis is a medicine manufacturing company and its basic value chain is as follows:
Acquisition of raw material
The activity starts from the procurement of raw material from the trusted supp liers of the Novartis around the world with which Novartis has strategic alliances. alliances. However sometimes
material is acquired from third party suppliers who are asked to adhere the Novartis third party code of conduct for ethical, labor and safety standards. Manufacturing and packaging of Products
Novartis produces its products on the following locations around the world.
Basel, Switzerland
Grimsby, England
Huningue, France
Kundl, Austria
Kurtkoy, Turkey
Lincoln, Nebraska
Ringaskiddy, Ireland
Schaftenau, Austria
Schweizerhalle, Switzerland
Singapore
Stein, Switzerland
Suffern, New York
At present the company is dealing in:
Pharmaceutical comprises a portfolio of prescription medicines which are provided to patients through healthcare professionals. These are mainly products of original research of the Novartis Group.
Vacancies and diagnostic
Generic products comprise Retail Generics products. The business unit primarily focuses on the therapeutic segments such as Anti-TB, Anti-DUB (G ynaecology), Antihistamines, Antibiotics, Anti-ulcerants, Anti-diabetes and Cardiovascular.
Animal health products are primarily in the cattle, poultry and aquaculture market segments.
Contact lenses and care products
The OTC segment is mainly in the VMS (vitamins, minerals and nutritional supplements) and CoCoA (cough, cold and allergy) market segments.
The research and development is the essence of the industry Novartis is dealing in. these activities are performed at:
Basel, Switzerland
Cambridge, Massachusetts
East Hanover, New Jersey
Horsham, England
Shanghai, China
Warehousing
The products are temporarily stored at the warehouses adjacent to the production facility and afterwards dispatched through the logistic network of the comp any around the world in 140 Countries Company is operating at present.
Distribution
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The distribution of the product is made as follows:
