The process of corporate life is always a sea change and sometimes there are high tides and sometimes are quiet times. Day to day companies are faced with new challenges, whether it be a consolidated organization or a small business just starting, always emerging issues that affect their behavior and their performance. Owing to the consequences of an impressive development of technology and globalization that we are living in this age.
Nowadays are faster changes, new challenges threaten seriously survival of organizations, new foreign competitors, mobilization of capitals, difficulties in retaining human capital and changing technologies are elements that require managers to be prepared for change and have ability to motivate employees in order to have continuous renewal. “Micro and small enterprise dominated industries have been both threatened and provided with advantages as a result of dynamic trends related to globalization” (Kula et al., 2006). Value chain is not only to implement new management models that ultimately prove to be only uncertain. However, management of change consists of take advantage of changes in business environment for the interest of the organization. That is why companies should not only be flexible, but also managers should develop a keen sense to anticipate change; therefore companies will be able to achieve to be at the forefront. According to Porter (1998) “Activities provide the bridge between strategy and implementation. When strategy was defined in terms of broad positioning concepts, a clear separation between strategy and structure was meaningful and useful.”
Innovation is everywhere and organizations that are not renewed will hardly be able to survive.
Firstly, it should be noted that the purpose of this essay is that I want to explain what is the value chain, its impact to the companies and the impact of globalization to the value chain. Afterwards, I will explain the
References: San Miguel, J, 1996, Value chain analysis for assessing competitive Advantage. Institute of Management Accountants. Canada. Staying competitive in the global economy (2008) Secretary-General of the OECD