Value Chain Management
Introduction
The goal of this essay is to explain the various functions and strategies of value chain management and discuss how to implement them in a flat screen display business, so as to improve the performance of the operating system which ultimately will increase the efficiency and quality of production thereby helping them gain a competitive advantage over their competitors. Which will result in increased the profits for the business.
Value Chain Management: Development of a set of functional-level strategies that increase the performance of the operating system a company uses to transform inputs into finished goods and services. (George and Jones, 2006:267)
Operating System: The different functional activities an organization combines and uses to acquire inputs, convert inputs to outputs, and dispose of the outputs. (Answers, 2006:1)
Value chain
Refers to the idea that a company is chain of functional activities that transform inputs into an output of goods and services that customer 's value.
Production function
Responsible for the creation of a good or service
Marketing and Sales function
Increase value customer perceives to be contained in a product
Service function
Provide after-sales service and support
Materials management function
Controls the movement of physical materials through the value chain
Information systems function
Controls the electronic system for managing inventory, tracking sales, pricing products, etc.
(Michael E. Porter, 1985:37-43))
Therefore one must divide the business up into the fore mentioned functions, specifically: creating an efficient and productive process whereby producing the flat-screen displays. Design and come up with a competitive and catchy marketing campaign which promotes the quality of the product and its value for money so as to increase the customers ' perceived opinion of the product.
The goal of this essay is to explain the various functions and strategies of value chain management and discuss how to implement them in a flat screen display business, so as to improve the performance of the operating system which ultimately will increase the efficiency and quality of production thereby helping them gain a competitive advantage over their competitors. Which will result in increased the profits for the business.
Value Chain Management: Development of a set of functional-level strategies that increase the performance of the operating system a company uses to transform inputs into finished goods and services. (George and Jones, 2006:267)
Operating System: The different functional activities an organization combines and uses to acquire inputs, convert inputs to outputs, and dispose of the outputs. (Answers, 2006:1)
Value chain
Refers to the idea that a company is chain of functional activities that transform inputs into an output of goods and services that customer 's value.
Production function
Responsible for the creation of a good or service
Marketing and Sales function
Increase value customer perceives to be contained in a product
Service function
Provide after-sales service and support
Materials management function
Controls the movement of physical materials through the value chain
Information systems function
Controls the electronic system for managing inventory, tracking sales, pricing products, etc.
(Michael E. Porter, 1985:37-43))
Therefore one must divide the business up into the fore mentioned functions, specifically: creating an efficient and productive process whereby producing the flat-screen displays. Design and come up with a competitive and catchy marketing campaign which promotes the quality of the product and its value for money so as to increase the customers ' perceived opinion of the product.