We will now be breaking these sectors to have a more in-depth understanding of a Value Chain analysis, and also how it works for Cable and Wireless. Primary activities consist of five sub-headings, (from bottom to top) Inbound logistics, Operations, Outbound logistics, marketing and sales and finally services. Inbound logistics, these are activities such as materials handling, warehousing, inventory control, used to receive, store and disseminate inputs to a product. Cable and Wireless operates in 80 countries globally. They are constantly reinventing themselves to embrace in the latest technological advances to serve its customers.
Operations, these are activities necessary to convert the inputs provided by inbound logistics into the final product form. Packaging, assembly and equipment are examples of these activities. The company has developed a system which aids global ‘operations engineering services’, with a list of core solutions for the construction of voice and data infrastructures including EPIC, Pt. The Network Services and Solutions (NSS) deploy its experience and resources to ensure the most technically and commercially appropriate infrastructure solution.
This is achieved with the support of EPIC (Engineer, Procure, Install & Commission) and Pt consulting. ‘Pt Consulting is an advisory service for financial institutions involved in the development of new telecommunications infrastructure projects’. http://www. cw. com/uk/nss/solutions_and_services/pt_consulting/index. html Outbound logistics, this involves collecting, storing and physically distributing the final product to customers, examples of these are finished goods, warehousing, materials handling and other processing.
The structure of Cable and Wireless’s cabling team will design your entire cabling system, handle the logistics, project manage the installation and maintain the system throughout its lifetime. ‘As part of our lifecycle approach to your infrastructure, we also offer regular network analysis services to help you manage future network developments, and connectivity management to help with moves, changes and additions’. http://www. cw. com/uk/services/networkintegration/cabling/
Marketing and sales, activities completed to provide means through which customers can purchase products as well as inducing them to do so. To effectively market and sell products, firms develop advertising and promotional campains; select appropriate distribution channels, as well as selecting, developing and supporting their sales force. In October 2004 Cable & Wireless stepped up its programme to re-position itself with the announcement of an innovative major media deal exclusively with Times Newspapers Limited (TNL).
The contract with TNL’s Development Department incorporates a number of communication channels including: advertising, sponsored supplements, online activity and events. This was Cable & wireless long awaited advertising campaign in four years, their message was simple. It introduces the idea that, wherever customers are on their journey towards integrated communications and IT, Cable & Wireless can help them go forward with confidence. As such, it clearly states the company’s position as the leader in integrated communications and IT infrastructure solutions for business.
This thought is brought together with the creative idea that Cable & Wireless will take the customer on a pragmatic, step-by-step journey, whereas others will depict an idealistic nirvana. Services, these are actions undertaken to enhance or maintain a products value. Firms engage in a range of service related activities, including installation, repair, training and adjustment. Now we will be examining the support activities, which are made up of four segments which consist of Procurement, Technological Development Human Resources Management and Firm Infrastructure.
Procurement, these are activities completed to purchase the inputs needed to produce a firms products. Purchased products include items fully consumed during the manufacture of products, e. g. raw materials and supplies, as well as fixed assets, machinery, laboratory equipment, office equipment and buildings. On September 2000 cable & wireless announced it is piloting a phased worldwide programme to put online a large proportion of its own purchasing, with Commerce One, Inc, the leader in global e-commerce solutions for business and SAPMarkets, the leader in collaborative marketplace software and solutions.
This is just one part of which the eProcurement project is driven by the company’s commitment to Internet technology for improving business communication and extracting greater efficiencies both for Cable & Wireless’ customers and for the company itself. The trial is expected to improve the efficiency of Cable & Wireless’ procurement function, by automating the communication between itself and its suppliers. http://www. cw. com/media_events/media_centre/releases/2000/09_13_2000_29. html
Technological Development, are activities completed to improve a firm’s product and the processes used to manufacture it. Technological development takes many forms, such as process equipment, basic research and product design, and servicing procedures. On September 2003 Cable & Wireless, and Damovo, the global services company, announced that they will deliver an Internet Protocol Virtual Private Network with Quality of Service to Atomic Energy Authority Technology plc, one of the world’s leading innovation businesses.
The resolution links eight sites across the UK and is expected to save AEA Technology an approximate 33% on its inter-site voice and data costs by replacing its existing BT Featurenet voice & SMDS data networks with a single multi-protocol label switching (MPLS) based IP-VPN. Other AEA Technology sites may be connected at a later date. http://www. cw. com/media_events/media_centre/releases/2003/09_30_2003_22. html Human Resource Management, are activities involved with recruiting, hiring, training, developing, and compensating all personnel.
They allow employees the freedom to express themselves, follow their instincts and achieve their goals, while supporting them every step of the way. The company has designed a well structured program for employee’s to undertake when joining Cable and Wireless. This program emphasises on enhancing their knowledge on both the telecommunications industry and also the different culture types there are, as Cable and Wireless are a Global force. ‘With our emphasis on succession planning, online training and development, and self-learning, you will find there is nowhere better to add to your abilities and build a rewarding career.
Prove yourself, and we will not just pay you a great salary, we will also give you a range of flexible benefits that you can tailor to your own needs. These include a stake in the company through our generous stock option plan’. http://www. cw. com/about_us/career_centre/employment_philosophy/ Firm Infrastructure, this includes activities such as management, planning, finance, accounting, legal support, and government relations that are required to support, and governmental relations that are required to support the work of the entire value chain.
Through its infrastructure the firm strives to effectively and consistently identify external opportunities and threats, identify resources and capabilities, and support core competencies. In December 2003, Cable & Wireless announced that it has appointed Lesley Smith to the newly-created role of Group Director of Corporate and Public Affairs. In this new role Lesley will report to Francesco Caio, CEO, Cable & Wireless, and will be accountable for both the Corporate Communications and Public Policy functions of the group, which are to be united.
Lesley Smith at present is the Group Director, Corporate and Public Affairs, for Dixons Group plc where she is responsible for relationships with UK and EU Governments. She was also involved in leading media activity as part of the Labour Party’s election campaigns in the last three elections. Francesco Caio, commenting on the appointment, said: “I welcome Lesley to Cable & Wireless and to this new role. Her experience across both corporate communications and public affairs will help us in aligning our activities in these fields and driving them forwards.
” As an outcome of the combination of the two corporate functions, Susan Cottam, Director, Corporate Communications, and Tom Phillips, Director, Public Policy, will be leaving the group. Francesco Caio said: “Susan and Tom have both played a significant role in positioning Cable & Wireless for recovery and growth, as well as establishing the new management team with external audiences. I thank them for this and for their contribution to the company overall, and wish them every success for the future. “