Essay about Value Chain Analysis - 1201 Words

Value Chain Analysis Many organizations do not achieve the profits they anticipate by using incorrect methods or models to determine the true costs of products and services. This failure to correctly assess the costs associated with business not only affects the profit margin, but the organizations competitive advantage as well. In order to asses whether the organization is failing to realize optimum resource allocation, the organization should look at the methodology first popularized by Michael Porter titled the Value Chain Analysis (VCA). VCA seeks to define the entire chain through which goods are supplied to a customer (Booth, 1997, 2). The VCA can be a powerful tool in increasing an organizations competitive advantage; by†¦show more content†¦Stabell and Fjeldstad (1998), stated that inbound logisitics can even even apply to technology as inbound logistics can be Â…receiving, storing, and disseminating inputs to the product (p 417). Inbound logistics could be simplified by stating that it is the most basic requirement to begin the organizations processes; be it raw materials, patients, customers, or inputs. Let us assume that the organization is going to develop a new technology for physicians. The organization is going to develop a form of wireless PDA that is about the size of a clipboard. Instead of carrying a paper file into every patient appointment, the doctor will have this smart-pad that they can use to input patient data. Throughout the day, the physician hooks up the smart-pad to his office PC through a USB cable, and the information is transmitted into the patient history. Inbound logistics would include identifying what materials will be needed as well as what software will be needed to support the new technology. Inbound logistics would need to determine what components will be outsourced, which will be built in-house, and what software will be needed to support the new technology. Once all steps of inbound logistics have been completed, the next step in the value chain is Operations. Operations involves the activities used in transforming theShow MoreRelatedValue Chain Analysis1651 Words   |  7 Pagesorganization should adopt the various application of information technology. This will put the organization at the forefront in terms of innovation as well as give the organization a competitive advantage (Hitt amp; Robert, 2011, p.10). Value chain analysis is a model that was developed by Michael Porter to help an organization develop a strategy for its organization. Michael porter suggested that organization activities can be grouped into two major categories which include the following; primaryRead MoreValue Chain Analysis And Analysis1589 Words   |  7 Pagesdiscuss and explore the value chain analysis and the internal analysis in the strategic management. The focus of this report is to study the value chain analysis in detail along with the advantages and disadvantage of the value chain analysis. Also, the internal analysis is also discussed along with its pros and cons and the SWOT analysis of Next Plc. This report also discusses the way in which organizational resources are mixed to develop company’s abilities, Value Chain Analysis Keane (2008) statedRead MoreAn analysis of porters value chain1188 Words   |  5 Pagesfirms can gain a competitive advantage, it is useful to model the firm as a chain of value creating activities. For this purpose, Porter identified a range of interrelated generic activities common to a wide range of firms. The resulting model is known as the value chain. According to Porter (1985), Competitive Advantage arises out of the way firms organise and arrange discrete activities. Through using the Value Chain, the activities performed by a firm competing in a particular industry canRead MoreValue Chain Analysis For Costco1000 Words   |  4 PagesThe purpose of this paper is to do a value chain analysis of Costco, identify their resources and capabilities, to conduct a SWOT analysis to identify the opportunities in which they are lagging and to form a strategy to move forward using the recourses and capabilities in the direction of utilizing those opportunities. Value Chain Analysis for Costco Conducting a value chain analysis provides a snapshot for identifying a firm’s relative competitive performance, core competencies, and for focusingRead MoreSwot Analysis : Value Chain1514 Words   |  7 PagesIntroduction Value chain analysis has proven to be a useful tool for knowing how an organization can create the greatest value for its customers. Michael Porter (1985) in his book competitive advantage states that â€Å"understanding how a business creates value are essential elements for developing a competitive advantage.† [1]. According to porter (1985) value chain is â€Å"the process view of an organization, the idea of seeing an organization as a system, made up of subsystems each with inputs, transformationRead MoreCompany Analysis : Value Chain Analysis Essay1291 Words   |  6 PagesValue chain represents the internal activities a firm engages in when transforming inputs into outputs. Value chain analysis 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. Value chain analysis is also 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 differentiationRead MoreValue Chain Analysis of Aggreko2672 Words   |  11 PagesUniversity of Stirling Pre-Masters Skills for Business Environment Value chain analysis of Aggreko Name: Rita Date: 2011 Tutor: David Dick Value chain analysis of Aggreko 1. Introduction Currently, along with the increasingly development of globalization, every walks of life has to confront with the fierce competition. Even electric power market is no exception as well. Furthermore, more and more companies have not satisfied with the domestic market, they have focused onRead MorePorters Value Chain Analysis1879 Words   |  8 PagesThe value chain shows the internal steps a company or organization takes to transform inputs into outputs (Jurevicius, 2013). As the products pass through each stage or activity, value is added until they ultimately are ready to reach the consumer. Value chain analysis 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 (Jurevicius, 2013). The use of value chain analysisRead MoreMcdonalds Value Chain Analysis5751 Words   |  24 Pagesservice restaurant industry in terms of market share and brand value. Com mitted in quality, service, cleanliness, and value, McDonald’s must deliver its product to consumers with consistency and efficiency. This report will explore how McDonald’s corporation maintains its operational excellence through support from integration of sophisticated technologies. It suggests that to be able to apply technology in organization, value chain process must be defined and by then, information technology canRead MoreUps Value Chain Analysis864 Words   |  4 PagesValue Chain Model and Competitive Force Model BUSA 310: Dr. Chris Lee Carl Field Justin Kelly Jacob Augustine Monique Becker Value Chain Model [pic] Value Chain Model of United Postal Service United Postal Service (UPS) and every business has a Value Chain Model in order to be able to make sure that you have the best values for your internal and external customers. We have two activities, which are the Support and Primary. The UPS Support activities involve the Firm Infrastructure