The Value Chain Essay by Master Researcher

The Value Chain
A discussion on the nature and application of the value chain.
# 85879 | 2,475 words | 10 sources | 2005 | US
Published on Dec 01, 2005 in Business (General)

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This paper looks at value chains and the relative merits of constructing a value chain as a strategic device for management are illustrated and the value chain of a specific company is diagrammed to further illustrate a value chain's strategic utility. Further, activity based costing is examined as a beneficial tool in assigning value to individual links in the chain while core competencies are shown to be the primary goal of assigning links.

From the Paper:

"The value chain can be described as, "...the sequence of major business activities that add utility (usefulness) to the products or services provided by an organization to its customers" (Hwang, 1999, p.95). With that in mind any organization can be subdivided into the components that add value to each process comprising the production and delivery of its product or service. The reasons for examining an organization in this respect are many, but put succinctly, being aware of one's value chain and its components, "...will yield the greatest competitive advantage..."(Value, 1996, para.2). Establishing competitive advantage in today's marketplace has taken on proportions of mythic importance given that today's competitors may arise from any region and in many forms. Thus, for Chain Store Guide, dissecting its value chain is not an exercise in futility, but rather, an exercise of necessity."

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