Integrated Essay: Value Chain Analysis

In: Business and Management

Submitted By mrkimball
Words 671
Pages 3
Integrated Essay: Value Chain Analysis
Introduction

The purpose of this essay is to analyze the strength and weakness of the value chain for the Department of Veteran Affairs Supply (Value) Chain.
Core Concepts

The objective of this analysis of the Department of Veteran Affairs Supply (Value) Chain is to provide clear and concise identification of strengths and weaknesses (internal) opposed to opportunities and threats (external) (SWOT) critical to the viability of the value (supply) chain. Porter’s Generic Value Chain is the model for the analysis that identifies information, value-adding activities, e.g., primary activities, inbound logistics, and outbound logistics within the larger value system. The value-added to the value chain is the support services increase the efficiency of current Veterans Affairs supply chain. The data captures analytics requirements for informed decision; the results will be propagated as research.
Analysis
Analyzing the Department of Veteran Affairs Supply (Value) Chain one must consider core concepts, the value chain, value-generating activities and feasibility of the supply chain. The management of key VA organizations and contractors are vital to sustainability of the integrated enterprise supply (value) chain.
According to Porter (1985) “Value chain is the analysis of a business as a chain of activities that transform inputs into outputs that creates value for customers. For analyzing the sources of competitive advantage, value chain forms a tool, a means to evaluate the activities performed in an organization and how they interact, in a systematic manner.” (Porter, 1985).
Table 1
SWOT Analysis for {Department of Veteran Affairs Supply Chain}

|SWOT Analysis (Opportunity and Threats Omitted) |
|…...

Similar Documents

Integrated Essay

...Integrated Essay Walburg Cornerstone University 11/17/12 OLBA 02 BUS 302 Life comes at a person really fast and at times men and women don’t know how to react. This class gave me a great overview of what I need to do as a Christian in the field of business. This class taught me about how I should react and live my life. It also taught we 7 ways to better myself and help me along the way. The biggest thing that I learned is God is always there. God has blessed many people with the gift of business. This skill comes with great responsibility to have. The career choices many make in business have come with many stipulations. We need to hold ourselves to a standard one that lines up with Gods standards that he has set up for us in the bible. This standard has to be at the forefront of our minds when working. We need to make sure that we look out for the people that are less fortunate in our career choices. It is a hard concept for Christians to understand because the career choice of business is the basic explanation of greed itself. Most people in the field of business would have to have a different mindset instead of feeling that everything they are makings is for them. We as Christians have to have a different mindset such as how can I better others with my business. God has created us with a purpose to work. The purpose may be in business for myself but for others it may be another area of work. Work can be defined as anything to accomplish a goal. God created us...

Words: 1926 - Pages: 8

Value Chain

...Value Chain Can be understand how goods and services move through an organization and value is added to them. We can see above the horizontal line activity center they´re called support activities. Below the horizontal line are primary activities. Inbound Logistics which have to do with the getting raw materials into the company. Raw materials are not only one of the company´s success factors, its largest input. Suits&Co doesn´t use the fabric of domestic manufacture – because they don´t offer right products. In Portugal there are few vendors which offer quality raw materials which mostly coming from suppliers from Italy, Spain and Germany. Operations which performs operations on those raw materials. The quality of the raw materials is key factor to success. But also important part is technological level in the production process. Suits&Co invests 4 million euro per year in fabric. Outbound Logistics is the process of moving finished goods in to the hands of customers. It is distribution of finished goods. Only 25% of its sales coming from Portugal, Suits & Co are mostly focusing on American and European market. Company is planning to open new factory and office in US because of increasing demand in this market. It can help to avoid transportation costs and also be closer to Americans. Within increasing of scale Suits&Co developed ready to wear suit, shirts and ties – these accessories product are outsourcing by partners from the textiles industry...

Words: 580 - Pages: 3

Value Chain

... their homes, Air Asia uses general electric engine for their customer safety as customers are the main preference of the company. SALES & MARKETING: Air Asia has a strong brand name, now days marketing have a significant impact on any organizations sales, so Air Asia do advertisement by sponsoring “The amazing race”, and famous Manchester untied (mu) football club, painting some of it’s aircraft with club colours and sports star, and most importantly chief executive Fernandes himself wear Air Asia official red cap and T shirt in almost every official function. SERVICES: Now a days retaining a customer is a difficult task so to over come this Air Asia provide different type of services to it’s customer like if flight is delayed by more then three hours then u$ 61 e-gift voucher is given, passenger can also pre-book their checked baggage for a lower rate, and customers can also online book hotels, hostels, rent a car and medical services. SUPPORT ACTIVITIES: The value chain analysis has some$ support activities as well. The support activities that Air Asia has to follow in order to keep their business clean and operational are; FIRM INFRASTRUCTURE: Air Asia has a strong firm infrastructure they have evolved from a classic lcc into an integrated service provider, they are focusing towards their goals, they are providing the cheapest fare, they are exploring new markets, and decision making process is simple. HUMAN RESOURCE MANAGEMENT: Air Asia hire capable...

Words: 3546 - Pages: 15

Value Chain

... new global supply-base: New challenges for local suppliers in East Asia’ in Shahid, Y., Anjum, A.M. and Nabeshima, K. (Eds): Global Production Networking and Technological Change in East Asia, The World Bank and Oxford University Press, Washington, DC. Sturgeon, T., Biesebroeck J.V. and Gereffi, G. (2007) Prospects for Canada in the NAFTA Automotive Industry: A Global Value Chain Analysis, Industry Canada, Research Report. Notes 1 The entire worldwide demand for Apple’s iPod digital music player, for example, is satisfied from a few final assembly plants in China owned and operated by the Taiwan Province of China-based contract manufacturer Hon Hai. These plants receive components from manufacturers located in dozens of countries in North America, Europe and Asia. In the apparel industry, GVCs are becoming consolidated in five to ten low-cost production locations, with China alone doubling its share of global apparel exports from one-sixth to nearly one-third of the total between 2000 and 2006. Larger factories and integrated 24 T.J. Sturgeon et al. supply-chain cities within developing economies are also becoming the norm, with footwear companies like Nike and Reebok supplying global demand from giant plants that employ 70,000 or more workers (Gereffi, 2006, pp.33-37). As Yves van der Straaten, OICA Secretary-General, put it: “Vehicle manufacturers are world leaders in research and development and spend many billions of euros every year on R&D to further improve...

Words: 7992 - Pages: 32

Value Chain

...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...

Words: 1126 - Pages: 5

Value Chain

.... RAK, Fu Wang, China-Bangla, FARR, Modhumoti, ATI, Sunflower, Great Wall, Dhaka-Sanghai and Mir are considered as major manufacturers of tiles and sanitary wares. The total capacity of ceramic tableware manufacturing companies is nearly 24,000 tons a year as of 2008, of which an average of 48 percent is exported and the remaining 52 percent is used in the domestic market. Monno and Shinepukur have the highest production capacity of nearly 60,000 pieces a day, followed by Standard ceramics with 40,000 pieces a day. According to a market study, the existing tiles factories produced 374 million square feet of tiles in 2008 and the output is estimated to grow at the rate of 17 percent in 2009 and 2010. Of the total production of 322 million square feet of tiles in 2007, RAK ceramics alone made 74 million square feet followed by China- Bangla, Fu-wang an Mir, each produced slightly over 30 million square feet of tiles (M. Islam 2010, Khan 2009, Rahman 2009c, 2009e). Over the years, the ceramic industry in Bangladesh has flourished immensely and has gained recognition throughout the world. Local ceramic ware manufacturing industry is expecting a steady growth with a US $100 million return from exports by 2015 as the global market favors more shipment from Bangladesh. The Export Promotion Bureau (EPB) and Bangladesh Bank statistics shown in Figure 4.2 (in appendix) , put the total value of export earnings from ceramic ware at $38.33 million in the FY 2007-08, up by 28% from the...

Words: 4956 - Pages: 20

Value Chain

...According to the M. Porter Value chain is the chain of activities that a firm operating in specific industry performs in order to deliver a valuable product or service for the market. He introduced concept of value chain in his book "The Competitive Advantage" in 1985. Now this concept is one of the best known and widely applied. Value chain analysis helps to identify a firm's core competencies and distinguish those activities that drive competitive advantage. According to Porter: “Competitive advantage cannot be understood by looking at a firm as a whole. It stems from the many discrete activities a firm performs in designing, producing, marketing, delivering and supporting its product. Each of these activities can contribute to a firm’s relative cost position and create a basis for differentiation” (Porter, 1985:33) A view of these activities is given in the following figure. This is simplistic representation of company's value chain. In this figure you can see that activities fall in two categories: Primary and Secondary. Firstly, companies should identify core (primary) activities that would give them sustainable competitive advantage and secondly, identify the assets needed to achieve this advantage. Value chain activities are interrelated and represent value creation. The next figure exhibits Porter's framework of Value Chain Activities Primary Activities: relate directly to the physical creation, sale, maintenance and support of a product or service...

Words: 573 - Pages: 3

Value Chain

...Must you share to survive? [Building a better mousetrap is no longer the ticket to competitive advantage. Defy convention and explore the next evolutionary step in supply chain management] [Value chains] falseJones, Allen. Canadian Transportation Logistics104. 5 (May 2001): 22. I searched by IS and Value Chain and found this interesting article. The article basically is saying that no matter how good your mouse trap is you must have a good supply/value chain in place to make your product successful. There are several steps: “Find a killer purchasing manager to beat up on materials and service providers so that you can get your costs right.” Next find a great marketing manager to help market the product. “Success hinges on outwitting, outmanoeuvring, and outperforming everyone perceived as competition.” What this means is that the old idea of the supply chain has morphed into the value chain which is much more. It is not putting the focus on the “better” mouse trap but the entire picture. The fact that if the client needs a customized color that your company can accommodate it is part of the “value” chain. Your company forms good relationships with the vendors. Ultimately all of this translates into better relationships, more satisfied customers. cost savings and improved logistics management. Further more the internet is continuing to help shape the value chain. Current studies show that 47% of companies share data of all kinds with their value chain......

Words: 321 - Pages: 2

Value Chain

... segments to better understand the behavior of costs and the sources for more efficient. Identifying supply chain improvements may result benefit and investments from coordination of supply chain activities, the exchanges of sensitive cost information and the division of costs. The role of management accounting also important in interfirm relationships, there are; i. the make-or-buy decision that can lead to the initiation of a partnership, ii. the use of management accounting in the actual management of a partnership and iii. the partners’ responsibilities to each other which creates a role for performance measurement. To manage the costs by analyzing the activities in the value chain must have cooperatively with suppliers by integrating cost data across the supply chain. The integrated data was used for three purposes; i. it was used to analyze the cost performance of supply chain activities, both at the individual supplier level, as well as the supplier network. ii. the cost model was used to calculate the cost consequences of changing supply chain operations, and iii. the cost model was used to periodically monitor the development of supply chain costs over time. There have two dimensions of useful perspectives about the value chain analysis where; i. the need to manage coordination requirements, and ii. appropriation concerns in interfirm relationships, organizational theory and transaction cost economies. A problem of information asymmetry between the buyer and the...

Words: 1448 - Pages: 6

Value Chain

... initial businesses will be sponsored from the money raised in the campaign. Then in every three months we will be selecting a number of such groups of people whom we will train and facilitate to start their own business. In the later phases gradually the number of trainees per period as well as the variety of training (e.g. fish culture, mushroom culture, sericulture etc.) In a nutshell the value chain of the whole project will be as following: The Value Chain | Input | Activity | Output | Outcome | | | | Initial | Intermediate | Long Term | Marketing and Promotional efforts, Money | Direct Marketing, TVCs, PR, Using Social Media, TV program, Caller tune offers etc. | Public Awareness and Promotion of the Cause | Buzz Creation, Keeping Good Relation with Telecoms | Fund Collection | Retaining the Donors | Funds, Training Facilities, Buying Fixed Assets for the Trainees (Mobile, Sahiwal Cow) | Dairy Farming Training, Mobile Phone Account Recharge Training, Other Trainings (Mushroom, Sericulture etc.) in Future | Poor People learning Jobs | Employment, Women Empowerment | Family Solvency | Winning over Poverty | INPUT | | MISSION |...

Words: 1168 - Pages: 5

Value Chain

...1. Explain the significance of integrating different quality perspectives in the value chain. A: All the perspectives together make a value chain. There are certain type of Quality perspectives namely Value perspective, Transcendent perspective, Customer perspective, Product perspective, User perspective, Manufacturing perspective. All these perspectives are primarily concentrated on the quality and performance assurance of a particular product to the customer. For a company or business of manufacturing any goods to be successful it should ensure the excellence of the product, durability for intended use, quality products for a reasonable price and of course exceeding the expectations always counts. All these qualities are assured using the quality perspectives. This is the significance of integrating different quality perspectives in the value chain. 2. Discuss the “quality revolution” that took place in the United States after 1960s. A: In USA statistical quality control was terminated after the end of the war and government contracts. At this particular time in US Japanese produced the goods with high quality and low price by “total quality” approach. Looks like they didn’t just rely on product inspection. As American mangers were unaware of this trend, Japanese manufacturers began increasing their shares in American markets. As a result manufacturers began loosing market share and the economy suffered unfavorable trade balances. At first...

Words: 465 - Pages: 2

Value Chain

... by customer perceptions Increase margins Focus on value processess   Distinctive capabilities Cost advantages Southwest Airlines Intel Corporation 4-6  Some examples   STRATEGIC COST MANAGEMENT - BA122B - Fall 2006 Value Chain Analysis   Document the activities Understand the cost and margins at each step.  Use Activity Based Costing Look for core competencies Note that external values drive cost advantages  Map the value chain to the industry value chain   Map the cost structure  STRATEGIC COST MANAGEMENT - BA122B - Fall 2006 4-7  Distribute a summary of the value chain model. Create functional process lists. Transfer lists to color-coded labels. “Pin the process” on a large VC diagram. Identify appropriate processes as:   Discovering Your Own Value Processes     $ (cost advantage) CC (core competency) STRATEGIC COST MANAGEMENT - BA122B - Fall 2006 4-8 Using the Value Chain     Helps you to stay out of the “No Profit Zone” Presents opportunities for integration Aligns spending with value processes Provides for reconfiguration of the value chain     outsourcing off-shoring co-location with customers or suppliers redesign for efficiency  Involves chain partners: customers & suppliers 4-9 STRATEGIC COST MANAGEMENT - BA122B - Fall 2006 Value Chain and the TBC Triangle  Technical:     Increases knowledge of no profit zones......

Words: 431 - Pages: 2

Value Chain

...Value Chain Analysis—Executing Business Strategies Firms make profits by taking raw inputs and applying business process to turn them into a product or service that customers find valuable. A business process is a standardized set of activities that accomplish a specific task, such as processing a customer’s order. Once a firm identifies the industry it wants to enter and the generic strategy it will focus on, it must then choose the business processes required to create its products or services. Of course, the firm will want to ensure the processes add value and create competitive advantages. To identify these competitive advantages, Michael Porter created value chain analysis, which views a firm as a series of business processes that each add value to the product or service. Value chain analysis is a useful tool for determining how to create the greatest possible value for customers (see Figure 2.7). The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself, with a cost advantage or product differentiation. The value chain groups a firm’s activities into two categories, primary value activities, and support value activities. Primary value activities, shown at the bottom of the value chain in Figure 2.7, acquire raw materials and manufacture, deliver, market, sell, and provide after-sales services. 1. Inbound logistics: acquires raw materials and resources and distributes to......

Words: 254 - Pages: 2

Value Chain

... (Lynch, 2003). The value chain framework has been used as a powerful analysis tool for the strategic planning of an organization for nearly two decades. The aim of the value chain framework is to maximize value creation while minimizing costs (www.wikipedia.org). In this essay I will try to provide a scholarly overview of the “Value Chain Framework” with Critique and Analysis the same in firm Level. Part A: Value Chain Framework – Critique Main aspects of 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. Therein, competitive advantage of an organization lies in its ability to perform crucial activities along the value chain better than its competitors. The value chain framework of Porter (1990) is “an interdependent system or network of activities, connected by linkages” (p. 41). When the system is managed carefully, the linkages can be a vital source of competitive advantage (Pathania-Jain, 2001). The value chain analysis essentially entails the linkage of two areas. Firstly, the value chain links the value of the organizations’ activities with its main functional parts. Then the assessment of the contribution of each part in the overall added value of the business is made (Lynch, 2003). In order to conduct the value chain analysis, the company is split into primary and......

Words: 2797 - Pages: 12

Integrated Essay: Value Chain Analysis

...Integrated Essay: Value Chain Analysis Introduction The purpose of this essay is to analyze the strength and weakness of the value chain for the Department of Veteran Affairs Supply (Value) Chain. Core Concepts The objective of this analysis of the Department of Veteran Affairs Supply (Value) Chain is to provide clear and concise identification of strengths and weaknesses (internal) opposed to opportunities and threats (external) (SWOT) critical to the viability of the value (supply) chain. Porter’s Generic Value Chain is the model for the analysis that identifies information, value-adding activities, e.g., primary activities, inbound logistics, and outbound logistics within the larger value system. The value-added to the value chain is the support services increase the efficiency of current Veterans Affairs supply chain. The data captures analytics requirements for informed decision; the results will be propagated as research. Analysis Analyzing the Department of Veteran Affairs Supply (Value) Chain one must consider core concepts, the value chain, value-generating activities and feasibility of the supply chain. The management of key VA organizations and contractors are vital to sustainability of the integrated enterprise supply (value) chain. According to Porter (1985) “Value chain is the analysis of a business as a chain of activities that transform inputs into outputs that creates value for customers. For analyzing the sources of...

Words: 671 - Pages: 3