Define a value chain and the significance of the center of gravity. Please also provide an example of a value chain from your place of work or from a company that you have researched.
A value chain is a set of activities that are associated together that start with raw materials from suppliers, then goes to a set of activities in which are involved in marketing a certain product, and then ends with providers developing the final properties to the vital purchaser. Value chains can usually be split into two parts: upstream and downstream. The upstream deals where the company begins, how it develops, and what it produces. Then, downstream starts with where the goods, for example, are being transported and how it distributes to suppliers.
A company’s center of gravity is the most important part of the company and what the essential proficiencies are. It is usually where the company began, according to Galbraith. It is also where the company stands the strongest. In other words, whatever may be there strongest suit is what the company’s center of gravity is.
My company that I work for, AltaPointe Health Systems, can be used as an example of a value chain. AltaPointe Health Systems is a community based company that provides services of mental health to consumers that are struggling mentally and/or patients that are struggling with substance abuse issues. We have two hospital facilities (for adults and children), many residential homes, and also outpatient services. Since the primary focus of a value chain is to study the company of value-creating events, AltaPointe’s surfaces around one primary vision and that is psychiatry. Our value chain starts with having patients who come in (voluntary or involuntary) who are mentally ill or abusing substances. They tell us what is going on and our psychiatrists make an analysis based on their assumption of the patient’s sickness. They decide whether or not our facility is right for them