The Concept of Value Chain - Essay Example

MANAGING VALUE CHAIN Course Name Professor Name University Name Date of Submission The process involving organizing the group activities that build on the value by manufacturing goods or services from the raw products for consumption by the consumer refers to the management of value chain. The value chain management helps in integration in communication so has to increase understanding between production chain groups to decrease delivery times. The concept of value chain explores a significant role in the business activities operating competitively. Therefore, a Value chain is the connection relationship of business that assesses the effectives of a management business performance amongst is competitors. Hence, the niche of every firm or company depends upon the competitiveness of the value chain it implements (Monk & Deloach, 2013). For instance, the company to achieve or gain the efficiency and effectiveness, it must include the use of competitive pressure. Therefore, the managing value chain entails the performance of the system chain management. However, or the performance of the system to be managed and monitored, the constraints must be handpicked and managed correctly. Therefore, the Value Chain is all about the activities within and around the company. The company activities are thus related to the analysis of the competitive organization strength. The value chain deals in the evaluation and determining which entity o activities add up to the organization’s product or services. Hence, the cost and profit is determined by the way o the performance of value chain. It has thus led to the development of activities, with the primary activities majoring in the development and service delivery or its products. Managing value chain, therefore, involves five different elements of the process. The activities which include receiving, storing and distributing inputs internally, that focuses on the transformation of products in services. Collecting, distribution and storing of the products to different consumers is outdoor activities of the company The organization management can apply the following Value chain practices such as tactical planning, operational, strategic and operational in its value management. The strategic planning can be used to define the goals and objectives of the organization. As a manager, the process would help in envisioning a desired future, by designing objectives and the goals that the organizational need to attain. By framing the items involved in the strategic planning, which includes the vision which every organization member need to ascribe. The organization mission must be describing to each and every worker so that they must work in line with the organization services. Lastly, the organization values entail in the strategic planning helps to ensure which each employee obey the work ethics and principles of the organization. In order, for the organization to attain its goal, tactical planning must be used as immediate and short- term activities for achieving the objectives of strategic planning must be included. However, for the tactical planning to take place and achieve its aim (Monk & Deloach, 2013). I must ensure that the organization employees understand the strategic goals. In addition, the courses of action that are needed to achieve the said objectives. It can be done through, fixing of deadlines on specific goals to ensure that every task is delivered within the timeframe, stipulated. To avoid incompetence in the attainment of objectives, the tactical planning must apply the budget drafting, according to the day-to-day business of the organization. As a manager, the Operational planning of the organization must be taken into considerations it is the wheel that drives the day to day running of the organization. For the organization to attain its objectives the team members of the organization must link the company’s strategic plan with its Operational planning (Balkau & Sonnemann, 2010). The schedule of the organization day to day running of its activities must involve the description and frameworks on how to achieve the tactical goals within the stipulated time. The organization management can adopt any of the two Operational plans, Single-use planning, and Ongoing-planning. Therefore, I consider the differences between the Value Chain and Supply chain to be one of the most fundamentals bases when it comes to the managing of the Value chain. I, therefore, consider Supply chain to be effectiveness and efficiency, responsiveness. While the Value chain aspects on downstream by delivering value to customer efficiency and effectiveness. Hence, the best Value chain do not focus to uplift only one supply chain characteristics but to ensure maximization of the total value added to the customers. The reasons for the importance of understanding the managing value chain in an organization. It helps in stating the activities within and around an organization, by linking them to an analysis of the organization competitive strength. Managing value chain, aid in the assessment of the all the values and choosing one that is considered to be adding a profit to the organization through the activities the organization undertakes. Therefore, the ability to link the management of the values of each activity to work on the activities is what is referred to us the competitive advantage. My view is that the Value chain focuses on the customer management by involving new product innovation. It is done through post-sales support, as a result of change management orient. The supply chain focuses human resource such as labor and support services. However, the Supply chain tends to underpin Value chains by allowing the producers ability to give customers what they need, when and where they need, at the price they need (Balkau & Sonnemann, 2010 ) The managing value chain approach can be applied in the organization workplace, by ensuring that the changes of the organization behavior are implemented. First, I must ensure that the understanding of the financial and non-financial incentives of the various stakeholders is an address to upgrade it throughout the chain. The organization can change its relation with others when there are benefits of win-win relationship explicit to the stakeholders. Lastly, by targeting leverage points to maximize impact and outreach. The aspects of information integration are not included, in the above discussion; however, it is essential for an organization that wants to improve on the Value chain. As the managing value chain is meaningless if there is no sharing of information among the elements in the Value chain management. Therefore, the multiple levels of information must be linked to the different levels of strategic, operational. The information must be easily interactive and accessible among different departments. Besides, the aspects of information, the paperwork did not reflect on the cycle-time responsiveness. The reason why the cycle -time responsiveness are required is because the competitive advantage need a firm to have a total cycle time measures of its activities. For instance, to have a well strategic positioning in the market, the supply chain must be made in the fastest way possible to the consumers. Hence, the total cycle time performance aid in monitoring the time when the order which the customer needed is produces to the time of delivery. Therefore, the cycle-time performance plays a significant role, as it help in speeding the work of the employees. It is done by the organizational setting a timeframe for each assigned task. The cycle-time performance does not only manage the production supply chain, but also it acts as the basis of measuring the prices of every commodity. Hence, the organization should not focus only on the human resource material such as labor, machinery but also to work on its optimal management of time and assets resources. Bibliography "Axia Value Chain Names John Christina Managing Director of Life Sciences Practice", 2011, Professional Services Close - Up, Balkau, F. & Sonnemann, G. 2010, "Managing sustainability performance through the value-chain", Corporate Governance, vol. 10, no. 1, pp. 46-58 Monk, C. & Deloach, J. 2013, "Managing the Risk of Disruption in Your Supply Chain", SDCExec.com, Supply & Demand Chain Executive Names Hitachi Consulting Managing VP 'Pro to Know' for Work in Building the Market Responsive Company(SM) 2009, New York Read More