The Value Chain P 7. Soft Spot is a manufacturer of futon mattresses. Soft Spot
Solution
a)Renewed costs-- primary processes:- Research and development-$4 Design-$2.4
Supply-$3.4 Production-$9.4 Marketing-$4.5 Distribution-$6.3 Customer service-$1.2 Total cost
per unit(primary processes) =$31.2 Support Service :- Human resources-$1.6 Information
services-$4 Management accounting-$0.8 Total cost (support) = $6.4 b) No.the management
proposals meet the targeted primary processes costs but support services are still over rated.
Reducing the support services by 40% will make the management achieve its targeted price per
unit. c) All the support services,IS,HS,MA play a major role in value chain analysis but not
primary processes are more imp. than Support service cuz as long as there isnt any prob in the
quality of product,Support services are not needed.
Solution
a)Renewed costs-- primary processes:- Research and development-$4 Design-$2.4
Supply-$3.4 Production-$9.4 Marketing-$4.5 Distribution-$6.3 Customer service-$1.2 Total cost
per unit(primary processes) =$31.2 Support Service :- Human resources-$1.6 Information
services-$4 Management accounting-$0.8 Total cost (support) = $6.4 b) No.the management
proposals meet the targeted primary processes costs but support services are still over rated.
Reducing the support services by 40% will make the management achieve its targeted price per
unit. c) All the support services,IS,HS,MA play a major role in value chain analysis but not
primary processes are more imp. than Support service cuz as long as there isnt any prob in the
quality of product,Support services are not needed.
