Value Chain Mac D
1.0 Introduction of value chain
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.
Definition : According to John Del Vecchio writing for Fool.com, a value chain is "a string of companies working together to satisfy market demands." The value chain typically consists of one or a few primary value (product or service) suppliers and many other suppliers that add on to the value that is ultimately presented to the buying public.
The value chain analysis means of increasing customer satisfaction and managing cost more effectively. This is a systematic approach to examining the development of competitive advantage. Value chain analysis is particularly useful tool for looking at competitors, and identifying sources of competitive advantage The value chain categorizes the generic value-adding activities of an organization. The main activities respectively are: inbound logistics, production, outbound logistics, sales and marketing, maintenance. These activities are supported by: administrative infrastructure management, human resources management, R&D, and procurement. The costs and value drivers are identified for each value activity. The value chain framework quickly made its way to the forefront of management though as a powerful analysis tool for strategic planning. Its ultimate goal is to maximize value creation while minimizing costs. The concept has been extended beyond individual organizations. It can apply to whole supply chains and distribution networks. The delivery of a mix of products and services to the end customer will mobilize different economic actors, each managing its own value chain. The industry wide synchronized interactions of those local value chains create an extended value chain, sometimes global in extent. Capturing the value
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.
Definition : According to John Del Vecchio writing for Fool.com, a value chain is "a string of companies working together to satisfy market demands." The value chain typically consists of one or a few primary value (product or service) suppliers and many other suppliers that add on to the value that is ultimately presented to the buying public.
The value chain analysis means of increasing customer satisfaction and managing cost more effectively. This is a systematic approach to examining the development of competitive advantage. Value chain analysis is particularly useful tool for looking at competitors, and identifying sources of competitive advantage The value chain categorizes the generic value-adding activities of an organization. The main activities respectively are: inbound logistics, production, outbound logistics, sales and marketing, maintenance. These activities are supported by: administrative infrastructure management, human resources management, R&D, and procurement. The costs and value drivers are identified for each value activity. The value chain framework quickly made its way to the forefront of management though as a powerful analysis tool for strategic planning. Its ultimate goal is to maximize value creation while minimizing costs. The concept has been extended beyond individual organizations. It can apply to whole supply chains and distribution networks. The delivery of a mix of products and services to the end customer will mobilize different economic actors, each managing its own value chain. The industry wide synchronized interactions of those local value chains create an extended value chain, sometimes global in extent. Capturing the value