Value Chains Analysis
Order Instructions:
For this paper, the writer will have to chose a company base on the instructions provided. It is critical that the writer pay special attention to all the details of this paper, because the writer will have to use the same information for another paper that’s due subsequently as noted in the assignment details. I will upload the template mentioned in the paper for the writer to have an idea of what the subsequent paper will look like so as to guide her in choosing the company for this paper. I will also upload additional instructions to help the writer in choosing the company for this paper as it will be a continues assignment and every detail will count from day one. Hear below the writer will follow the detail instructions to respond to the questions raise after the scenario , and will end by asking a question as also mentioned in the instructions as one other pear will have to in turn respond to that in class. The paper will have a 4 paragraphs in two pages as mentioned in the instructions. It is critical that the writer follow all the detail instructions as any missteps will jeopardize the entire paper .
Value Chains Analysis
Consider the following scenario:
Miguel owns a Mexican restaurant. He has well-established relationships with local suppliers and has fresh produce delivered daily. Carefully trained cooks craft authentic Mexican food in state-of-the-art kitchen using a well-refined and systematic process. They interact seamlessly with fast, friendly wait staff who typically deliver food in fifteen minutes or less to hungry customers. Customers come in large numbers for good food at a good price. Miguel carefully tracks customer preferences to alter menus and offer specials.
Despite being a small business, Miguel has successfully coordinated various internal activities and established external relationships in ways that create value for his customers.
A well-functioning work team carefully assesses the strengths and weaknesses of each team member, assigning activities to leverage their individual strengths. However, team members also carefully coordinate tasks to ensure they combine their individual efforts in effective ways. Effective organizations do the same by carefully selecting a strategy that maximizes the strengths in performing various activities. They exploit relationships between internal activities to create a chain of activities that maximizes the value of their product or service for customers. Companies large and small can derive additional benefit from combining a strong internal value chain with those of external partners to establish a value system.
To prepare, select a company with which you are very familiar or for which you can easily obtain information.
You may wish to use the organization you are thinking of proposing for the Sustainable Solutions Paper (SSP), which you will complete throughout the course. This would allow you to re-purpose information from this paper for a portion of your SSP. If you wish to take advantage of this opportunity, please review the SSP template located in this week’s Learning Resources to ensure the organization you choose for this paper also satisfies the SSP requirements. Review this week’s Learning Resources, particularly Exhibit 1 in Porter and Millar’s article “How Information Gives You Competitive Advantage.” You can use this chart to guide your value chain analysis for this paper.
Write a minimum of, 3–4 paragraph response (2 pages). Briefly describe the organization you selected and the industry in which it is located.
Explain the concept of value chain and its impact on business strategy.
Next, explain how technology impacts a value chain.
Apply Value Chain Analysis to identify strengths and weaknesses in areas of the value chain for the organization you selected.
Describe the linkages (relationships) between the areas, and explain the strategic significance of the organization’s value chain in terms of the larger value system.
Extend the conversation by identifying implications for practice or research, as well as for your own research agenda, where appropriate. Be sure to integrate one or two new related and engaging questions that will extend the discussion about your paper in constructive ways.
Try to think of a question(s) that will engage your peers in critical analysis and thinking about your organization, which may provide insight for your use as you continue preparing your sections of the major Week 4 Sustainable Solutions Paper (SSP) due in this course.
Resources
Readings
• Harvard Business School Press. (2005). Strategy: Create and implement the best strategy for your business. Boston, MA: Author.
o “Introduction” (pp. xi–xxi)
The Introduction to the text presents the ideas of strategy creation and implementation. The book defines strategy and illustrates and contrasts it against the term “business model.” It outlines business strategy as a process, moving from the establishment of goals to the implementation of those goals. The Introduction ends with an overview of the remainder of the text from Chapter 1 through Chapter 9.
• Senge, P., Smith, B., Kruschwitz, N., Laur, J., & Schley, S. (2008). The necessary revolution: Working together to create a sustainable world. New York, NY: Broadway Books.
o Chapter 1, “A Future Awaiting Our Choices” (pp. 3–13)
In this chapter, the authors introduce readers to the idea that the Industrial Revolution is coming to a close. The authors assert that ways of thinking, being, and consuming that many have grown accustomed to are now being called into question. They begin to suggest that new ideas are emerging to solve the new challenges surfacing in our world. This resource is useful for completing your SSP Proposal and your SSP in the coming weeks.
o Chapter 9, “Positioning for the Future and the Present” (pp. 119–139)
The authors present several approaches in this chapter. They suggest breaking sustainable value into four quadrants—providing a framework within which today’s companies can evaluate their strategies and project the payoff of making changes. Throughout the chapter, the authors provide examples of companies who are succeeding in the present while positioning their businesses to meet the needs of the future in this quickly changing environment. This resource is useful for completing your SSP Proposal and your SSP in the coming weeks.
o Chapter 11, “Building Your Case for Change” (pp. 157–164)
In this chapter, Senge et al. (2008) provides strategies for communicating change and soliciting “buy-in” from decision makers. They revisit the sustainable value matrix from Chapter 9 and outline specific steps for building consensus. This resource is useful for completing your SSP Proposal and your SSP in the coming weeks.
• Millar, V.E. & Porter, M. E. (1985, July–August). How information gives you competitive advantage. Harvard Business Review, 63, 149–160..
In this seminal work, Porter and Miller (1985) articulate the strategic significance of the information revolution on competitive advantage. While the aspects of this article related to information technology may now seem dated, the core management principles are still very much in use today. Focus on the Exhibits as they relate to your understanding of the analysis of value chains for use in this week’s paper
• NetMBA. (2010). The value chain. Retrieved August 6, 2013, from http://www.netmba.com/strategy/value-chain
The site briefly introduces the value chain concepts and the value chain’s relationship to cost and differentiation strategies. The site also identifies technologies that can be employed in many value chain activities. The site stresses the importance of linkages between value chain activities and analyzing these interrelationships. It explains the outsourcing of activities and the development of value systems.
SAMPLE ANSWER
Value Chains Analysis
Sustainability is one of the concepts that is gaining more approval in most of businesses across the world. Companies deal in different areas of production and they are required to remain sensitive to the environment even as they carry out their activities to be sustainable even in the future. The paper focuses on the Apple Inc.,. This company is in the industry of communication technology. The pioneer of the company was Steve Jobs and Steve Wozniak. They developed their first computer in 1976 (Apple Case Study, 2012). The company continued to expand and grow and currently it is one of the most popular brands. The company is renowned for its creative and innovation products such as iPods, iPhone, Smartphone’s and many others. The company CEO Steve Job worked hard and remained visionary enabling the Apple Inc., to be one of the world influential and successful companies.
Value chain is a concept that most firms employ to create value. Is the set of activities that an entity carries out in order to create value for its customers hence, instrumental in creating competitive advantage (Millar & Porter, 1985). The value chain consists of various activities categorized as support activities and primary activities. The supporting activities includes human resource management, procurement and technology development while primary activity includes inbound logistics, operations , outbound logistics , marketing and sales and services (Millar & Porter, 1985). These activities are important as they contribute to firms’ creation of value. Value chain impacts on a business strategy as they provide impetus for the business to achieve its goals (Millar & Porter, 1985). For instance, a firm is expected to carry out sales and marketing of its products to ensure that it succeeds. Therefore, value chain acts as a catalyst in achieving these objectives and goals. Technology has become important in the functioning and operations of business. Technology impacts on value chain in various ways. One of the ways is that it ensures good management and processing of information in an entity. Information is critical as it provides avenues for an entity to improve in its operations (Buciuni & Mola, 2014). Technology is important in protecting the knowledge base of the company as well. This is important as it plays a key role in creating value. Technology as is also important in reducing costs of information technology ensuring the firm stays current with advancements in technologies and maintains technical excellence.
The company has a number of strengths as well as weaknesses. The company understands the impact of employees. It has therefore put in place appropriate mechanisms that ensure hiring of the right employees. The HRM is up to the task as employees are treated well and motivated contributing to its success. Teamwork and unity have helped to enhance creativity and innovation. The company is also up to date in terms of technological advancement. Technology has played a key role in its success. It has reduced costs of doing business. The company has as well established infrastructure that facilitates its operations. The company as well as values its customers and this has contributed to its success. The loyalty of its customer has enabled it to climb to the tip (Sahoo, 2012). Some of the weaknesses are challenges in procurement. The company faces challenges when it comes to its suppliers who are not reliable. The source of raw materials is also higher affecting its operations.
Various areas in the organization value chain links. For instance, the shipped in raw materials are transformed to output. The finished products are then delivered to customers. Marketing and sales are carried out to persuade and seduce customer to buy them (Cravens, Piercy & Baldauf, 2009). The company has put mechanisms in place to ensure that customer receive quality products and can return defective products if purchased. This value chain therefore is important to the organization as a whole. It has enabled the organization to expand and be in operations in various countries. The profit margins of the organization have as well increased tremendously over the years. The company has also managed to engage in corporate social responsibility impacting lives of many people. Therefore, this research is important as it enhances understanding of the significance of value chain. It as well provides insights to various activities of value chain and how it can impact business strategy. As I finish, the question that everyone should ponder about is, What can leadership of an organization do to ensure that an organization promotes sustainability initiatives as they create value.
References
Apple Case Study (2012). Apple Inc.: The Steve Jobs Effect. The Steve Jobs Effect, 1-16
Buciuni, G., & Mola, L. (2014). How do entrepreneurial firms establish cross-border relationships? A global value chain perspective. Journal of International Entrepreneurship, 12(1), 67-84.
Cravens, D., Piercy, N., & Baldauf, A. (2009). Management framework guiding strategic thinking in rapidly changing markets. Journal of Marketing Management, 25( ½), 31-49.
Millar, V., & Porter, M. (1985). How information gives you competitive advantage. Harvard Business Review, 63, 149–160.
Sahoo, D. (2012). Strategic Change of Campaign at Apple Inc. The Indian Journal of Management, 5(2), 38-48.
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