Value Chain Analysis Essay Example

|Unit 4 - Discussion |
|James Patterson [pic] |
|4/5/2013 10:55:46 AM |
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|1. What are the constraints in conducting an effective value chain analysis? |
|While conducting a value chain analysis companies may face different types of constraints in having an effective process. Although, the |
|value chain analysis may have constraints, it is a very flexible strategy tool for looking at your business, your competitors, and the |
|respective places in the industry’s value system (Simister, P. 2011). One of the biggest constraints especially for a newer company is |
|financial constraints. Companies that are just beginning have limited capital to purchase equipment and materials needed to improve |
|productivity. Additionally, there are also external constraints and quality constraints that can deter an effective value chain analysis. |
|2. What can be done to mitigate or overcome constraints? |
|There are a few steps that can be taken to help minimize constraints as much as possible. First the company needs to be able to identify |
|the types of constraints that are hindering an effective analysis. If it is a financial constraint, the company should look at other