Case Study: Value Chain Analysis of BSRM Group, Bangladesh
Introduction:
Today’s aggressively competitive business environment has led to companies recognizing more and more the imperative of strategically positioning themselves in order to remain competitive. The propagation of goods and services, continually improving modes of operation, quality standards, innovation, information etc, have spawned commoditization and replication of offerings, and with them, unremitting competition, hence the imperative of differentiation.
Applying the principles of the value chain (ie. adding value within each and at the interface between business processes to create value for the end consumer) can assist companies in achieving this. A winning company always works for improving and adding values to its business in Zero Time. To attain its business activities, the companies perform the primary activities supported by the supporting units. In this assignment paper we will try to see how BSRM adds values in their supporting activities. We will follow the Value Chain Model.
Value Chain Analysis
Value chain analysis is a powerful tool for managers to identify the key activities within the firm which form the value chain for that organization and have the potential of a sustainable competitive advantage for a company. The "primary activities” include: inbound logistics, operations (production), outbound logistics, marketing and sales (demand), and services (maintenance). The "support activities" include: infrastructure management, human resource management, technology (R&D), and procurement. The costs and value drivers are identified for each value activity.
Selected Company and Product
BSRM Group is the largest and leading industrial conglomerate in the steel sector of Bangladesh. The BSRM Group of Companies has been in the steel business from 1950 with a set of four manual rolling mills produced reinforcing bars and structural sections. The mill gradually expanded, adopting new technology by setting up a cross country European
Today’s aggressively competitive business environment has led to companies recognizing more and more the imperative of strategically positioning themselves in order to remain competitive. The propagation of goods and services, continually improving modes of operation, quality standards, innovation, information etc, have spawned commoditization and replication of offerings, and with them, unremitting competition, hence the imperative of differentiation.
Applying the principles of the value chain (ie. adding value within each and at the interface between business processes to create value for the end consumer) can assist companies in achieving this. A winning company always works for improving and adding values to its business in Zero Time. To attain its business activities, the companies perform the primary activities supported by the supporting units. In this assignment paper we will try to see how BSRM adds values in their supporting activities. We will follow the Value Chain Model.
Value Chain Analysis
Value chain analysis is a powerful tool for managers to identify the key activities within the firm which form the value chain for that organization and have the potential of a sustainable competitive advantage for a company. The "primary activities” include: inbound logistics, operations (production), outbound logistics, marketing and sales (demand), and services (maintenance). The "support activities" include: infrastructure management, human resource management, technology (R&D), and procurement. The costs and value drivers are identified for each value activity.
Selected Company and Product
BSRM Group is the largest and leading industrial conglomerate in the steel sector of Bangladesh. The BSRM Group of Companies has been in the steel business from 1950 with a set of four manual rolling mills produced reinforcing bars and structural sections. The mill gradually expanded, adopting new technology by setting up a cross country European