Creating Shared Value

Shared Value in the Value Chain I I Firm Infrastructure (e.g., Financing, Planning, Investor Relations) Human Resource Management (e.g., Recruiting, Training, Compensation System) Technology Development I (e.g., Product Design, Testing, Process Design, Material Research, Market Research) I Procurement (e.g., Components, Machinery, Advertising, Services) Inbound Logistics Operations (e.g., Incoming Material Storage, Data (e.g., Assembly, Component Fabrication, Collection, Service, Customer Access) Outbound Logistics Marketing & Sales (e.g., Order Processing, (e.g., Sales Force, After-Sales Service (e.g., Installation, Customer Support, Warehousing, Promotion, Branch Operations) Report Advertising, Complaint Preparation) Proposal Resolution, Writing, Website) Repair) M a g i n • Procurement that enhances supplier capabilities and efficiency • Improving energy, water and resource efficiency across the value chain • Minimizing logistical intensity • Improving employee health and safety • Enhancing the productivity and wages of lower income employees Recruiting that represents the diversity of customers and the communities where a company operates • Others 20131105 HSM Brazil CSV Presentation-FINAL 11 Copyright 2013 O Professor Michael E. Porter

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