...Value chain business models Value chain selling is supported through two business models: demand chain and a supply chain; WebSphere Commerce supports the transactions through, and relationship management of both the demand chain business model and supply chain business model. These models support transactions involving multiple enterprises or parties. Products, goods, services, or information are delivered through the parties of the value chain from producers to end users. A value chain also has relationship and administrative aspects, that is, you can manage the relationship of the partners or enterprises in your value chain, as well as offer some administrative services to those parties. As a result, value chain business models must manage the two sides of their businesses: their customers and direct sales, and their channel partners and suppliers. Each requires its own management channels and practices. To sell directly to customers (direct sales), value chain models usually include a storefront, where customers can purchase their goods or services directly. To manage relationships with partners or suppliers, the demand chain and a supply chain models within the value chain include a hub. Under these models, value chain administrators can administer the operational aspects of the value chain in the hub, including enabling partners or suppliers to participate in the value chain by registering them, setting them up, and conducting various operations. Partners and suppliers...
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...Value Chain = Supply Chain + Demand Chain: New Approaches to Creating and Capturing Sustainable Value Fanny Thublier(1), Terry Hanby (2) and Yongjiang Shi (2) Arts et Métiers ParisTech 75013 Paris, France (2) Institute for Manufacturing University of Cambridge, Cambridge, CB3 0FS, UK (1) Abstract The purpose of this research paper is to develop a Value Chain conceptual model based on a combined Supply and Demand approach. Drawing primarily from the literature on Supply Chain, Demand Chain and Value Chain, modern definitions for these concepts are developed. Based on these findings, a new equation in the “value” world is introduced: “Value Chain = Supply Chain + Demand Chain”. The resultant model recognizes the growing importance of the end-consumer in the design and management of these chains and considers both the effectiveness and efficiency relationship in the Value Chain. In addition, different value perspectives for the Value Chain are suggested with particular focus on sustainable value creation and capture issues. It is anticipated that this model will be developed further in the specific context of the luxury market using case studies to develop and refine the proposed Value Chain model. Keywords: Value Chain, Supply Chain, Demand Chain, Consumer, Customer. Introduction While external forces such as economic, ecological, technological and regulatory developments are increasingly altering the global landscape, new industry trends now affect the value...
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...build-to-order model to developan exceptional supply chain? Many of the challenges in improving the supply chain come with all of theunknowns. Most companies produce products they think the consumer will want. Thenthey ship these products to the retail stores. The stores then try to sell the products thatare on their shelves to the customers. The supply chain shows down while they arefiguring out what to build. Then they work with suppliers to get the raw materials andcomponents for the products. The chain slows down more while they are building the products and shipping them to the stores. Then the supply chain is still slow while theywait for the products to sell and get paid. Supply Chain Management: An Analysis of Dell¶s Value ChainDell has used its direct sales and build-to-order model to create this exceptionsupply chain by integrating everything from the beginning to the end process. Dell starts by researching customer to find out what they want. As soon as an initial product isdesigned, Dell starts to market that product on the web-site. Dell does not start to produce any of the products until the customer tells Dell exactly what they want and paysfor the product. Only then does the procurement process start. Dell has improved thesupply chain to make it exceptional by integrating the suppliers. The suppliers have aWeb page which informs them of pending orders. This allows the suppliers to plan basedon actual demand. This sales model created an exceptional supply chain because...
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...IMPLEMENTATION Chapter Eleven The Strategy of International Business OBJECTIVES • To identify how managers develop strategy • To examine industry structure, firm strategy, and value creation • To profile the features and functions of the value chain framework • To assess how managers configure and coordinate a value chain • To explain global integration and local responsiveness • To profile the types of strategies firms use in international business Chapter Overview Chapter Eleven presents tools and concepts used in analyzing and formulating international business strategy. First, the relationship between industry structure and competition in global industries is examined. Next, value chain analysis is used to identify the internal capabilities of the firm that can be leveraged to create competitive advantage. Effective international strategy depends greatly on the proper configuration and management of a company’s global value chain. The sometimes conflicting demands of global integration versus local responsiveness are examined. Finally, a typology of strategic alternatives including multidomestic, international, global, and transnational strategies is presented. CHAPTER OUTLINE OPENING CASE: Value Creation in the Global Apparel Industry [See Fig 11.1 and Map 11.1.] Zara, a large clothing retailer headquartered in northwest Spain, has used an innovative strategy to power its global expansion. ...
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...Value chain analysis Value chain From Wikipedia, the free encyclopedia Jump to: navigation, search Popular Visualization 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.[1] Contents[hide] * 1 Concept * 1.1 Activities * 2 Significance * 3 SCOR * 4 Value Reference Model * 5 References * 6 See also | [edit] Concept A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of added values of all activities. It is important not to mix the concept of the value chain with the costs occurring throughout the activities. A diamond cutter can be used as an example of the difference. The cutting activity may have a low cost, but the activity adds much of the value to the end product, since a rough diamond is significantly less valuable than a cut diamond. Typically, the described value chain and the documentation of processes, assessment and auditing of adherence to the process routines are at the core of the quality certification of the business...
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...VALUE CHAIN – CRITIQUE/FIRM LEVEL ANALYSIS INDIVIDUAL ASSIGNMENT – UNIVERSITY OF BALLARAT CHINTHAKA ARIYAPALA – ID 30100162 Brief Content Topic Page 1. INTRODUCTION...………………………………………………………………………….. 3 2. VALUE CHAIN FRAMEWORK-CRITIQUE…………………………………………………….. 3 3. MAIN ASPECT OF VALUE CHAIN ANALYSIS…………………………………………………. 3 4. PRIMARY ACTIVITIES…………………………………………………………………………………. 4 5. SUPPORT ACTIVITIES………………………………………………………………….…………. 5 6. LIMITATION OF VALUE CHAIN ANALYSIS………………………………………………………. 7 7. COMPETENCIES……………………………………………………………………………… 8 8. INTERNAL ANALYSIS THROUGH SWOT ANALYSIS……………………………………… 8 9. VALUE CHAIN ANALYSIS……………………………………………………………………….. 9 10. CONCLUTION…………………………………………………………………………………….……. 11 11. REFERENCES……………………………………………………………………………….…………. 13 Introduction The value chain approach was introduced by Michael Porter in the 1980s in his book “Competitive Advantage: Creating and Sustaining Superior Performance” (Porter, 1985). The concept of value added, in the form of the value chain, can be utilized to develop an organization’s sustainable competitive advantage in the business arena of the 21st C. All organizations consist of activities that link together to develop the value of the business, and together these activities form the organization’s value chain. Such activities may include purchasing activities, manufacturing the products, distribution and marketing of the company’s products and activities (Lynch...
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... Understanding Apple Company’s value chain This main purpose for this article is to analyze Apple Company’s value chain. From this article, some professional knowledge about value chain in operation management can be learned. And the analyze will be deeply discussed in operation structure. In the textbook, operation structure is defined as the configurations of resources in the value chain including elements of suppliers, factories, distributors, sales offices, design and so on. (Collier and Evans, OM) The following articles will analyze specifically how these elements are operated in Apple Company from the view of Value chain style and value chain model. We can not deny that Apple Company is familiar with everybody in the modern society. In 1976, Apple Company was set up by selling computers. They expanded their business to other industries especially in music player and phone during the development of the company in last 11 years. (Apple company) Nowadays, Apple is the dominant marketing leaders in each field they joined in. The most significant factor of these excellent performances is the attitude to the value chain management. The obvious proof for this conclusion is the last sentence of the article as follow: Apple plans to double spending on its supply chain, to $7.1 billion, continuing its focus on streamlining and controlling manufacturing. The high focus level of the value chain generates the Apple’s amazing achievement...
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...Documenting Information Systems By Slade Augustine Contents Page Introduction Pg 3 Rea Ontology Outline Pg 4 The Value System Rea Model Pg 5 - 7 Environmental Analysis Pg 8 - 12 The Value Chain Model Pg 13 - 17 The Business Process Model Pg 18 - 22 Database tables Pg 23 - 24 SALES/COLLECTION (DEBTORS) DATABASE DESIGN Pg 25 The Financing Business Process Pg 26 - 34 Supporting Documentation Pg 35 Rea Task Level Model Pg 36 - 41 Conclusion Pg 42 Company Information Pg 43 Bibliography Pg 44 Introduction Cape Town Partnership was established in the year 1999 by their chief executive officer Mike Farr. Over the past decade, Cape Town Partnership has been developing and improving the CBD (Central Business District). The Cape Town Partnership is an agency which facilitates partnerships between government and private sectors. Through the Cape Town Central City Improvement District who is closely affiliated with the Partnership, they manage the operational activities, to assist with project development and urban management. Since its establishment, the Cape Town Partnership has become an internationally acclaimed model of public and private partnerships between property owners and businesses supported by the City of Cape Town. Cape Town Partnership specializes in major city...
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...The Value Chain Analysis – Support activities and Value Chain System The Value Chain System The firm's value chain links to the value chains of upstream suppliers and downstream buyers. The result is a larger stream of activities known as the value system. The development of a competitive advantage depends not only on the firm-specific value chain, but also on the value system of which the firm is a part. A firm's value chain is part of a larger system that includes the value chains of upstream suppliers and downstream channels and customers. Porter calls this series of value chains the value system, shown conceptually below: The Value System ... | > | Supplier Value Chain | > | Firm Value Chain | > | Channel Value Chain | > | Buyer Value Chain | Linkages exist not only in a firm's value chain, but also between value chains. While a firm exhibiting a high degree of vertical integration is poised to better coordinate upstream and downstream activities, a firm having a lesser degree of vertical integration nonetheless can forge agreements with suppliers and channel partners to achieve better coordination. For example, an auto manufacturer may have its suppliers set up facilities in close proximity in order to minimize transport costs and reduce parts inventories. Clearly, a firm's success in developing and sustaining a competitive advantage depends not only on its own value chain, but on its ability to manage the value system of which it is a...
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...1. “Value chain analysis (VCA) is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation.” 2. “Value chain represents the internal activities a firm engages in when transforming inputs into outputs.” Understanding the tool VCA is a strategy tool used to analyze internal firm activities. Its goal is to recognize, which activities are the most valuable (i.e. are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide competitive advantage. In other words, by looking into internal activities, the analysis reveals where a firm’s competitive advantages or disadvantages are. The firm that competes through differentiation advantage will try to perform its activities better than competitors would do. If it competes through cost advantage, it will try to perform internal activities at lower costs than competitors would do. When a company is capable of producing goods at lower costs than the market price or to provide superior products, it earns profits. M. Porter introduced the generic value chain model in 1985. Value chain represents all the internal activities a firm engages in to produce goods and services. VC is formed of primary activities that add value to the final product directly and support activities that add value indirectly. Below you can see the Porter’s VC model. Primary Activities | ...
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...Defining value chain architectures: Linking strategic value creation to operational supply chain design Matthias Holweg a, Petri Helo b,n a b Judge Business School, University of Cambridge, UK Department of Production, Faculty of Technology, University of Vaasa, Finland art ic l e i nf o Article history: Received 31 May 2012 Accepted 13 June 2013 Available online 28 June 2013 Keywords: Value chain Supply chain management Operations strategy a b s t r a c t Over the past three decades scholars have developed comprehensive insights into the operational and strategic aspect of designing and managing the supply chain. Reviewing this ample body of knowledge however one cannot help but notice a persistent disunion between the “value chain” view that considers aspects of value creation and appropriation, and the operational “supply chain” view that considers strategies and tools for designing and operating efficient inter-firm networks. Commonly these views do not interact: value creation has the aim of capturing the maximum value-added in financial terms, the supply chain view aims for designing operationally efficient supply chains. In contrast to their treatise within the academic literature, from a practical point of view these two aspects are both necessary (and thus in their own right insufficient) components to a firm's supply chain strategy. In this paper we thus turn to an exploratory case study to identify what such a combined view of the value and supply chain would entail...
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...The Role of the Engineer in the Value Chain Executive Summary In the recent past, value chain management has undergone radical transformation through various stages of automation, optimization and integration. This is based on a variety of reasons such as shortened technology and product development lifecycles, globalization, and pressures of competitive forces. This has forced organizations to review their value chain systems in order to survive and grow in such dynamic economic environments. In the field of engineering, value chains have become vital aspects of operations management when it comes to the application of engineering systems to the industrial and commercial processes. The main purpose of this paper is to disentangle the role of the engineer in the value chain. In this context, it will go further in analyzing the key elements of value chain and any accrued benefits that come with use of engineers in the value chain management. Value Chain Analysis The inception of Value Chain is associated with Michael Porter. He gives his understanding to this concept using a model he referred to as; “Porter’s value chain model” (Sekhar, 2009: 115). This model evaluates the strategically vital activities in a firm that boost its competitive advantage. Such competitive advantage is usually achieved through the core competencies of the firm. According to Porter, a firm is defined by a set of processes and functions which he classified into five main activities; the inbound...
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...FINANCE IN VALUE CHAIN ANALYSIS—A SYNTHESIS PAPER microREPORT #132 OCTOBER 2008 This publication was produced for review by the United States Agency for International Development. It was prepared by DAI. FINANCE IN VALUE CHAIN ANALYSIS—A SYNTHESIS PAPER microREPORT #132 The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CONTENTS INTRODUCTION ................................................................................. 1 OBJECTIVE ................................................................................ 1 DEFINITION ................................................................................ 1 IMPORTANCE ............................................................................. 1 REPORT STRUCTURE ................................................................. 1 THE VALUE CHAIN ANALYSIS (VCA) FRAMEWORK ..................... 3 ANALYTICAL VCF FRAMEWORK WITH CASE-STUDY ILLUSTRATIONS ................................................................................ 7 UNDERSTANDING THE CURRENT CASH FLOW AND CREDIT STRUCTURE (ANALYTICAL PHASE) ............................................ 7 Intra-firm Finance ......................................................... 8 Finance Services Provision .......................................... 9 Inter-firm Finance (Governance) ................................ 10 UNDERSTANDING...
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...Papers on Value chain analysis; Reports on Different Companies The article focuses on the main aspects of Value chain analysis. The activities entailed in the framework are discussed in detail, with respect to competitive strategies and value to the customer. The article includes tips for students and analysts on how to write a good Value chain analysis for a firm. Moreover, sources of findings information for value chain analysis have been discussed. The limitations of Value Chain analysis as a model have also been discussed. Introduction The value chain approach was developed by Michael Porter in the 1980s in his book “Competitive Advantage: Creating and Sustaining Superior Performance” (Porter, 1985). The concept of value added, in the form of the value chain, can be utilised to develop an organisation’s sustainable competitive advantage in the business arena of the 21st C. All organisations consist of activities that link together to develop the value of the business, and together these activities form the organisation’s value chain. Such activities may include purchasing activities, manufacturing the products, distribution and marketing of the company’s products and activities (Lynch, 2003). The value chain framework has been used as a powerful analysis tool for the strategic planning of an organisation for nearly two decades. The aim of the value chain framework is to maximise value creation while minimising costs (www.wikipedia.org). Main aspects of Value Chain Analysis ...
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...services, processes, people, and other business activities. Good measures provide a “scorecard” of performance, help identify performance gaps, and make accomplishments visible to the workforce, the stock market, and other stakeholders. Financial Measures • Often take top priority in for-profit organizations. • Traditional financial measures include revenue, return on investment, operating profit, pretax profit margin, asset utilization, growth, revenue from new goods and services, earnings per share, and other liquidity measures. Customer and Market Measures • Customer measures: Customer satisfaction, customer retention, gains and losses of customers and customer accounts, customer complaints, warranty claims, measures of perceived value, loyalty, positive referral, and customer relationship building. − A customer-satisfaction measurement system provides a company with customer ratings of specific goods and service features, and indicates the relationship between those ratings and the customer’s likely future buying behavior. • Market measures: Market share, business...
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