Value chain design (Example).docx - Value Chain Design 1...

Value Chain Design 1
Value Chain Design
Pawita Rueangphayungsak
MBA 550 Business Operations
February 4, 2020
Daniel L. Hammes
City University of Seattle

Value Chain Design 2
Abstract
This paper analyzes the value chain design of Tesla Company based on the company's
supply chain. The author evaluates at each step of the value chain by Porter's Value Chain
analysis model. Furthermore, it categorizes the activities into support activities and primary
activities. Additionally, the writer also shows awareness of effective resource allocation and its
ethical implications.

Value Chain Design 3
Value Chain Design
The value chain is a network of facilities and processes that describes the flow of
materials, finished products, services, information, and financial transactions from suppliers,
through the facilities and processes that create goods and services, and those that deliver them to
the customers (Collier, 2017). Tesla provides electric vehicles with a sustainable energy system;
furthermore, Tesla’s value chain is one of the best effective value chain design (Tesla, 2019).
Porter's value chain analysis model evaluates the value and loss of amounts of sources in the
organization by analyzing information into primary activities and support activities (Viler, 2010).
In order to analyze the Tesla company value chain, there are five primary activities and four
support activities. Figure1 indicates Tesla’s value chain.
Figure 1: Tesla’s Value chain (Yuan et al., 2015)

Value Chain Design 4
Primary Activities
Inbound logistics
Tesla produces the fundamental elements of the car such as the electric motor, the battery
pack, and the charger; however, they purchase the other parts from many suppliers across the
U.S., Europe, and Asia (Maverick, 2019). Some of the main suppliers for Tesla’s production are
AGC Automotive: windshields, Brembo: brakes, Fisher Dynamics: power seats, Inteva Products:
instrument panel, Modine Manufacturing Co.: battery chiller, Sika: acoustic dampers, Stabilus:
liftgate gas spring, and ZF Lenksysteme: power steering mechanism (Maverick, 2019). Tesla
owns the capitol manufacturing facility and warehouse in Fremont California, United States;
otherwise, there are many facilities and warehouses are located in diverse locations including
North America, Asia, and Europe such as Livermore, California, Lathrop, California, Sparks,
Nevada, Taipei City, Taiwan, Elkridge, Maryland, and Bethlehem, Pennsylvania; additionally, the
company (Pratap, 2019).