...2010 MGMT 290-1004A-10 Professor Marta Leonida Requirements of Value Chain Management What is value chain management? Value chain management is the process of managing the sequence of activities and information along the entire value chain (Robbins, Stephen P. and Coulter, Mary. (2009) Management (10th ed.) Published by Prentice Hall.) Value chain management is externally oriented and focuses on both incoming materials and outgoing products and services. Value chain management is effectiveness oriented and aims to create the highest value for customers. 1.) Where is collaboration/coordination needed? Collaboration/ coordination is the process where two or more people or organizations work together to reach a common goal. When it comes to dealing with any type of sharing information, like done between supplier, the manufacturer, and the manager. Each one of the parties involved must be willing to be honest, flexible, willing to share all information, and the most important they have to communicate with each other. 2.) How might technology benefit the organization? Today with all the advances in technology to help organizations keep their customers completely satisfied. This is what helps to build a better relationship between customer and the workers 3.) Why evaluate organizational processes? The organizational process is the way the organizational work is done. This would mean in a value chain management situation is to make sure that everyone is doing what is needed...
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...Title: Value Chain Management Name: Yu Yat Ho Fish Topic: Starbucks–Human Resources Management Sub-Title: Employee Relation TABLE OF CONTENT 1. Executive Summary………………………………………………………………………………P.3 2. Introduction a. Company background……………………………………………………………………..P.4-5 b. Company Mission and Principle………………………………………………………P.5-7 c. Benchmark……………………………………………………………………………………..P.7-8 3. What is Value Chain Management?..........................................................P.9-11 a. Corporate Strategy………………………………………………………………………….P.12 b. Business Strategy…………………………………………………………………………….P.13 c. Functional Strategy …………………………………………………………………………P.13-14 4. Implementation of Human Resource Strategy by Employee Relation Practice a. Model of Communication………………………………………………………………..P.16-20 b. Employee Involvement…………………………………………………………………….P.20-26 5. Influence of Starbucks Human Resource Management to: a. Customers………………………………………………………………………………………..P.27-28 b. Business Process……………………………………………………………………………….P.29-30 6. Conclusion…………………………………………………………………………………………P.31 7. Appendix……………………………………………………………………………………………P.32-33 8. Bibliography………………………………………………………………………………………P.34-36. 1. Executive Summary What made Starbucks one of the most extraordinary companies in the world? I suggest that their core people-driven philosophies play a great part of it. The success of Starbucks is driven by the people...
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...d. Key Stakeholders Analysis Disaster affected people is a composite category. It includes different groups of people with varied economic and social background. However, the poor and extreme poor people are most affected due to their fragile economic condition, presence in risky locations and no potential for self recovery. They try to cope with the situation through multiple strategies. Firstly, austerity – mange situation with resources available (e.g. eat less, distress selling and desertation etc. ); secondly, forfeiture – make sacrifices to ensure survival (e.g. accept low wage for labour, accept bondage for advance payment of wage, send children to work for income, sell assets, leave home to seek job and income) and thirdly, requital – try accessing additional resources (e.g. seek loans, seek gift in kind, seek relief). Generally, disaster affected people do not perceive that they have any entitlement. They depend on immediate relief for the emergency period through NGOs, and GO. They are more dependent on the ‘safety net’ programmes of government as most vulnerable groups. CBOs – a community based formal set up, it is civil society non-profits that operate within a single local community. They are essentially a subset of the wider group of nonprofits. Like other nonprofits they are often run on a voluntary basis. It has ability to respond in emergency promptly due to its presence within the affected society. However, their capacities and resources are very limited....
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...A multi-talented and qualified IT Service Delivery and Change Management professional with over 14 years experience in technical and service management roles across banking and finance, federal government and retail. Plays a leadership role in critical delivery engagements, ensuring operational excellence in service delivery execution and to assure customer objectives and business, innovation and operational outcomes are achieved. Recognised as a trusted advisor, assesses customer requirements and influences service delivery methods and execution improvements through the eyes of the customer. • Service Delivery Management • Change Management strategies • Process Ownership • ITIL Incident Management • Communications Management • Tool Set Management...
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...The Value Chain Analysis – Support activities and Value Chain System The Value Chain System The firm's value chain links to the value chains of upstream suppliers and downstream buyers. The result is a larger stream of activities known as the value system. The development of a competitive advantage depends not only on the firm-specific value chain, but also on the value system of which the firm is a part. A firm's value chain is part of a larger system that includes the value chains of upstream suppliers and downstream channels and customers. Porter calls this series of value chains the value system, shown conceptually below: The Value System ... | > | Supplier Value Chain | > | Firm Value Chain | > | Channel Value Chain | > | Buyer Value Chain | Linkages exist not only in a firm's value chain, but also between value chains. While a firm exhibiting a high degree of vertical integration is poised to better coordinate upstream and downstream activities, a firm having a lesser degree of vertical integration nonetheless can forge agreements with suppliers and channel partners to achieve better coordination. For example, an auto manufacturer may have its suppliers set up facilities in close proximity in order to minimize transport costs and reduce parts inventories. Clearly, a firm's success in developing and sustaining a competitive advantage depends not only on its own value chain, but on its ability to manage the value system of which it is a...
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...1. “Value chain analysis (VCA) is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation.” 2. “Value chain represents the internal activities a firm engages in when transforming inputs into outputs.” Understanding the tool VCA is a strategy tool used to analyze internal firm activities. Its goal is to recognize, which activities are the most valuable (i.e. are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide competitive advantage. In other words, by looking into internal activities, the analysis reveals where a firm’s competitive advantages or disadvantages are. The firm that competes through differentiation advantage will try to perform its activities better than competitors would do. If it competes through cost advantage, it will try to perform internal activities at lower costs than competitors would do. When a company is capable of producing goods at lower costs than the market price or to provide superior products, it earns profits. M. Porter introduced the generic value chain model in 1985. Value chain represents all the internal activities a firm engages in to produce goods and services. VC is formed of primary activities that add value to the final product directly and support activities that add value indirectly. Below you can see the Porter’s VC model. Primary Activities | ...
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...Agribusiness Management Review Volume 14, Issue 2, 2011 Agricultural Value Chains in Developing Countries A Framework for Analysis Jacques H. Trienekens Associate Professor, Wageningen University-Management Studies and Maastricht School of Management Hollandseweg 1, Wageningen, The Netherlands Abstract The paper presents a framework for developing country value chain analysis made up of three components. The first consists of identifying major constraints for value chain upgrading: market access restrictions, weak infrastructures, lacking resources and institutional voids. In the second component three elements of a value chain are defined: value addition, horizontal and vertical chain-network structure and value chain governance mechanisms. Finally, upgrading options are defined in the area of value addition, including the search for markets, the value chain- network structure and the governance form of the chain. Part of this component is the identification of the most suitable partnerships for upgrading the value chain. The three components of the framework are derived from major theoretical streams on inter-company relationships and from the literature on developing country value chains. The framework is applied in a case example of a developing country value chain. Keywords: Developing country value chains, research framework, upgrading Corresponding author: Tel: + 31 317 484160 Email: Jacques.Trienekens@wur.nl 51 2011 International Food and Agribusiness Management Association...
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...Value chain analysis Value chain From Wikipedia, the free encyclopedia Jump to: navigation, search Popular Visualization The value chain, also known as value chain analysis, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.[1] Contents[hide] * 1 Concept * 1.1 Activities * 2 Significance * 3 SCOR * 4 Value Reference Model * 5 References * 6 See also | [edit] Concept A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of 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. It is important not to mix the concept of the value chain with the costs occurring throughout the activities. A diamond cutter can be used as an example of the difference. The cutting activity may have a low cost, but the activity adds much of the value to the end product, since a rough diamond is significantly less valuable than a cut diamond. Typically, the described value chain and the documentation of processes, assessment and auditing of adherence to the process routines are at the core of the quality certification of the business...
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...The Role of the Engineer in the Value Chain Executive Summary In the recent past, value chain management has undergone radical transformation through various stages of automation, optimization and integration. This is based on a variety of reasons such as shortened technology and product development lifecycles, globalization, and pressures of competitive forces. This has forced organizations to review their value chain systems in order to survive and grow in such dynamic economic environments. In the field of engineering, value chains have become vital aspects of operations management when it comes to the application of engineering systems to the industrial and commercial processes. The main purpose of this paper is to disentangle the role of the engineer in the value chain. In this context, it will go further in analyzing the key elements of value chain and any accrued benefits that come with use of engineers in the value chain management. Value Chain Analysis The inception of Value Chain is associated with Michael Porter. He gives his understanding to this concept using a model he referred to as; “Porter’s value chain model” (Sekhar, 2009: 115). This model evaluates the strategically vital activities in a firm that boost its competitive advantage. Such competitive advantage is usually achieved through the core competencies of the firm. According to Porter, a firm is defined by a set of processes and functions which he classified into five main activities; the inbound...
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...Introduction Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. Influential work by Michael Porter suggested that the activities of a business could be grouped under two headings: (1) Primary Activities - those that are directly concerned with creating and delivering a product (e.g. component assembly); and (2) Support Activities, which whilst they are not directly involved in production, may increase effectiveness or efficiency (e.g. human resource management). It is rare for a business to undertake all primary and support activities. Value Chain Analysis is one way of identifying which activities are best undertaken by a business and which are best provided by others ("out sourced"). Linking Value Chain Analysis to Competitive Advantage What activities a business undertakes is directly linked to achieving competitive advantage. For example, a business which wishes to outperform its competitors through differentiating itself through higher quality will have to perform its value chain activities better than the opposition. By contrast, a strategy based on seeking cost leadership will require a reduction in the costs associated with the value chain activities, or a reduction in the total amount of resources used. Primary Activities Primary value chain activities include: Primary Activity | Description | Inbound logistics | All those activities concerned with receiving...
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...According to the M. Porter Value chain is the chain of activities that a firm operating in specific industry performs in order to deliver a valuable product or service for the market. He introduced concept of value chain in his book "The Competitive Advantage" in 1985. Now this concept is one of the best known and widely applied. Value chain analysis helps to identify a firm's core competencies and distinguish those activities that drive competitive advantage. According to Porter: “Competitive advantage cannot be understood by looking at a firm as a whole. It stems from the many discrete activities a firm performs in designing, producing, marketing, delivering and supporting its product. Each of these activities can contribute to a firm’s relative cost position and create a basis for differentiation” (Porter, 1985:33) A view of these activities is given in the following figure. This is simplistic representation of company's value chain. In this figure you can see that activities fall in two categories: Primary and Secondary. Firstly, companies should identify core (primary) activities that would give them sustainable competitive advantage and secondly, identify the assets needed to achieve this advantage. Value chain activities are interrelated and represent value creation. The next figure exhibits Porter's framework of Value Chain Activities Primary Activities: relate directly to the physical creation, sale, maintenance and support of a product or service. These...
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...and Management Customer Value Management at Tata Steel In: Business and Management Customer Value Management at Tata Steel PERSPECTIVES presents emerging issues and ideas that call for action or rethinking by managers, administrators, and policy makers in organizations Understanding the Process of Transitioning to Customer Value Management B Muthuraman, Anand Sen, Peeyush Gupta, DVR Seshadri, and James A Narus Executive Summary Customer Value Management (CVM) has emerged as an important vehicle for customer retention in business markets. Supplier firms under increasing pressure from relentless competitive forces are seeking to retain and grow the share of business from profitable existing customers as a means of finding a way out of downward spiralling price pressures. While a lot has been written in academics about the importance of CVM, several gaps remain on understanding how a large company actually undertakes this journey. Crafting competitive value chains and focusing on streams of competition are also emerging as important agenda for supplier firms since, increasingly, the end customer is no longer willing to pay for inefficiencies in the value chains. In this context, the challenge for a supplier firm in business markets is no longer restricted to getting its own operations in order, but, additionally, it must ensure that multiple interfaces that exist across the entire value chain all the way until the end customer are streamlined so that the value chain...
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...IT and the Executive: Value Chain Analysis Question: What is a Strategy(1) ? The Oxford English Dictionary defines a strategy as follows: 1: The art of war. 2a: The management of an army or armies in a campaign. 2b: the art of moving troops, ships, aircraft, etc into favourable positions 3: A plan of action or policy in business or politics So let us now ask this question again, and this time attempt to answer it using a more information systems and business oriented language. “Strategy is a rule for making decisions under conditions of partial ignorance, whereas policy is a contingent decision. Business strategy is the broad collection of decision rules and guidelines that define a business’s scope and growth direction.” [1] “Strategy is the pattern of objectives, purposes or goals and major policies and plans for achieving those goals stated in such a way as to define what business the company is in or to be in and what kind of company it is or is to be.” [2] “Strategy formulation involves the interpretation of the environment and the development of consistent patterns in streams of organisational decisions.” [3] “Strategy is a broad based formula for how business is going to compete, what its goals should be, and what policies will be needed to carry out those goals. The essence of formulating competitive strategy is relating a company to its environment.” [4] “ Strategic decisions are concerned...
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...VALUE CHAIN – CRITIQUE/FIRM LEVEL ANALYSIS INDIVIDUAL ASSIGNMENT – UNIVERSITY OF BALLARAT CHINTHAKA ARIYAPALA – ID 30100162 Brief Content Topic Page 1. INTRODUCTION...………………………………………………………………………….. 3 2. VALUE CHAIN FRAMEWORK-CRITIQUE…………………………………………………….. 3 3. MAIN ASPECT OF VALUE CHAIN ANALYSIS…………………………………………………. 3 4. PRIMARY ACTIVITIES…………………………………………………………………………………. 4 5. SUPPORT ACTIVITIES………………………………………………………………….…………. 5 6. LIMITATION OF VALUE CHAIN ANALYSIS………………………………………………………. 7 7. COMPETENCIES……………………………………………………………………………… 8 8. INTERNAL ANALYSIS THROUGH SWOT ANALYSIS……………………………………… 8 9. VALUE CHAIN ANALYSIS……………………………………………………………………….. 9 10. CONCLUTION…………………………………………………………………………………….……. 11 11. REFERENCES……………………………………………………………………………….…………. 13 Introduction The value chain approach was introduced by Michael Porter in the 1980s in his book “Competitive Advantage: Creating and Sustaining Superior Performance” (Porter, 1985). The concept of value added, in the form of the value chain, can be utilized to develop an organization’s sustainable competitive advantage in the business arena of the 21st C. All organizations consist of activities that link together to develop the value of the business, and together these activities form the organization’s value chain. Such activities may include purchasing activities, manufacturing the products, distribution and marketing of the company’s products and activities (Lynch...
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...IMPLEMENTATION Chapter Eleven The Strategy of International Business OBJECTIVES • To identify how managers develop strategy • To examine industry structure, firm strategy, and value creation • To profile the features and functions of the value chain framework • To assess how managers configure and coordinate a value chain • To explain global integration and local responsiveness • To profile the types of strategies firms use in international business Chapter Overview Chapter Eleven presents tools and concepts used in analyzing and formulating international business strategy. First, the relationship between industry structure and competition in global industries is examined. Next, value chain analysis is used to identify the internal capabilities of the firm that can be leveraged to create competitive advantage. Effective international strategy depends greatly on the proper configuration and management of a company’s global value chain. The sometimes conflicting demands of global integration versus local responsiveness are examined. Finally, a typology of strategic alternatives including multidomestic, international, global, and transnational strategies is presented. CHAPTER OUTLINE OPENING CASE: Value Creation in the Global Apparel Industry [See Fig 11.1 and Map 11.1.] Zara, a large clothing retailer headquartered in northwest Spain, has used an innovative strategy to power its global expansion. ...
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