This makes the task of managing value chains especially difficult.
Opportunities for Improvement in Lockheed Martins' Value Chain
In evaluating how Lockheed Martin can become more effective in its value chain strategies, there is the immediate need to create a more agile platform to base the entire value chain on. The use of Service Oriented Architectures (SOA) and the extension of the value chain to services partners globally to handle Maintenance, epair, and Overhaul (MO) tasks is critical. Lockheed Martin expects to see a majority of their revenue from MO throughout the next ten years, and the fine-tuning of their value chains will be essential for this goal to be achieved. In addition, Lockheed Martin needs to consider bringing their customers into the definition and strategic management of value chains, creating advisory councils to ensure their customers' needs are understood and reflected in the process workflows. The bottom line is that…...
Value Chain in Social Media Monitoring
According to the value chain construct developed by Michael Porter, value is created by an organization through a fairly straightforward yet many-part array of primary and support activities (VBM, 2011). In this model, firm infrastructure, human resource management, technology development, and procurement all provide support to the primary activities of an organization, which can generally be broken down into the constituent parts of inbound logistics, operations, outbound logistics, marketing and sales, and services (VBM, 2011). In the fairly new industry of social media monitoring, the value chain can be somewhat difficult to pin down and may still be solidifying. By examining the value chain in two social media monitoring companies, an idea of how well the industry value chain matches the ideal value chain -- as well as how these two competitors are doing in terms of establishing and solidifying their value chains, and what…...
Value Chain Analysis: Overview of Two Approaches for Supervisor
In business, no one wants to be at the helm of what is merely termed a supply chain. Rather, a company wants to boast of its having a value chain, a chain that achieves a maximization of the inbound logistics, operations, outbound logistics, marketing and sales and service. Obviously, the ideal is to obtain the maximum value for the company from each process through continual improvement of the product, with a still-vigilant constant eye upon maintaining quality control of all steps of the chain. But different benefits are obtained through a shift in focus from product to process.
By focusing on continuing improvement of company products, the theory is that reductions in costs often come simultaneously. A firm that continuously improving on the value that customers perceive that they get from company products means that the company will also sell more of its…...
Value Chain Analysis
Manufacturing companies create value by acquiring raw materials and using them to produce something useful. etailers' range of products has to be convenient to customers. Activities that an organization engages in should add value to the service and products that an organization produces. This can only be achieved if the activities are run at optimum level (Mind Tools, 2013). For an organization to gain real competitive advantage the value obtained should exceed the costs of running them. Some of the primary activities involved here include inbound logistics, operations, outbound logistics, marketing, and sales. Inbound logistics are goods obtained from an organization's suppliers to be used for producing end products. aw materials and goods are manufactured into final products (Mind Tools, 2013). Value is added to a product as it moves through the production line. Products that have been produced are distributed to distribution centers, wholesalers, retailers, or customers.…...
Management in Healthcare
The value chain is a methodology developed in management studies to understand how firms derive value. There are five elements to the value chain -- inbound logistics, operations, outbound logistics, marketing & sales and service. A company can develop value through any of these, but most companies will focus on just one or two. This leaves room for improvement by developing the other areas of the value chain (MindTools, 2014). This paper will outline how a health care provider can improve its value chain.
Value Chain
The concept of the value chain has been re-imagined for the health care setting, for a couple of reasons. The first is that many providers are non-profit entities, so deriving profits is not a primary objective. The second reason is that value for the patients is an entirely different issue from value for the organization. There are areas of intersection between the two, but…...
Swayne, L, Duncan, W., Ginter, P. (2008). Strategic Management of Health Care Organization. Jossey-Bass: San Francisco.
Sweet, K., Hamilton, P. & Willis, S. (2005). The ailing healthcare supply chain: A prescription for change. Journal of Supply Chain Management. Vol. 41 (1) 4-17.
Value Chain of Marathon Oil
When considering the ever-changing and highly competitive global landscape of business today, firms must stay at the cutting edge of their respective fields in order to sustain profitability in the long-term. Accordingly, companies are faced with the continuous task of finding new ways to understand and subsequently accommodate market demands, while simultaneously securing lucrative business models and job environments. The Marathon Oil Corporation and its counterparts in the global petroleum industry are facing a multitude of barriers on the road to the maintenance of profitability. While trying to contend with ever-increasing crude oil prices, Marathon and its cohorts must find a way to maintain competitive prices at the pump. Marathon Oil, along with its subsidiary Speedway SuperAmerica LLC, operates over 6,000 locations spanning across 18 states in the Midwest and Southeast United States (Marathon Oil Corporation, 2008). Therefore, failing to maintain reasonable retail prices for…...
Kickul, J. (2001). Promises Made, Promises Broken: An Exploration of Employee Attraction and Retention Practices in Small Business. Journal of Small Business Management, 39 (4), 320 -- 335.
In 1985, Michael Porter published Competitive Advantage: Creating and Sustaining Superior Performance. In this book, he described how organizations can achieve competitive advantage in their industries. Porter's focus in this book was not on an overall competitive strategy, but on what organizations needed to do on a daily basis to achieve results. As Porter (3) stated, "My aim is to build a bridge between strategy and implementation." To create the link between the overall strategy of a firm and how that strategy could be achieved, Porter referred to value. As Porter (3) stated, "competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it." This focus on value led to the concept of the value chain, which refers to the internal processes that occur as the organization creates its product or service.
Value chain management is…...
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Works Cited
Moskowitz, M., & Levering, R. "The 100 Best Companies." Fortune 8 Jan. 2001: 148-168.
Pellet, J. "Finding Gold in the Value Chain." Chief Executive 190 (2003): 52-58.
Porter, M. Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press, 1985.
global value chain management is usually affected by various contemporary issues and their trends such as Six Sigma and Lean Manufacturing. Six Sigma is an important element in the global value chain management because it's usually deployed as a quality initiative. During this process, Six Sigma projects are often described as spin-offs from high-level business situations that are geared towards lessening the gap between the existing and target process performance. On the contrary, lean manufacturing is a strategy that is increasingly adopted by many businesses in order to minimize costs and lessen waste in light of the effects of the recent economic recession on the global economy. When implemented effectively, lean manufacturing strategies have proven to be effective in improving production processes, lessening waste, and facilitating the adoption of more sustainable business practices by organizations.
Six Sigma and its Trends:
As a quality improvement mechanism, Six Sigma has attracted an unexpected…...
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References:
Goh, T.N. (2010). Six Triumphs and Six Tragedies of Six Sigma. Quality Engineering, 22, 299-
House, L. (2012, November 8). Trends in Lean Manufacturing. Retrieved December 23, 2012,
This occurs especially in the area of CM, order management, supply chain management (SCM, and the continual evolution of Enterprise esource Planning (EP) systems as well (aj, Pedersen, 2010). Taken together, these innovations focus on taking one aspect of the value chain and making it much more efficient than it has ever been in the past. In creating that efficiency there is also the potential for revenue uplift to customers as well, thereby creating greater value for them in the process (Leavy, 2010). This approach to innovation makes it extremely valuable for companies who rely on it and Is to run their businesses, and whose companies align with the Porter value chain and who need to operate in a highly coordinate, synchronized manner.
Conclusion
Innovation in it and IS gradual in many of the enterprise software markets due to the resistance to change in many long-standing users of enterprise systems, but…...
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References
Brian Leavy. (2010). Design thinking - a new mental model of value innovation. Strategy & Leadership, 38(3), 5-14.
Porter, Michael E.. (1986). Changing Patterns of International Competition. California Management Review, 28(2), 9.
Rai, S., & Pedersen, M.. (2010). It INNOVATION in EMERGING ECONOMIES. Journal of Information Technology Case and Application Research, 12(4), 4-12.
Atefeh Yazdanparast, Ila Manuj, & Stephen M. Swartz. (2010). Co-creating logistics value: a service-dominant logic perspective. International Journal of Logistics Management, 21(3), 375-403.
Tesco's Value Chain Analysis
Value chain is defined as the special links that exists between the key value adding activities as well as their interfaces with all of the supporting activities (Lynch,2003). The concept of value chain has for along time been implied as a very strategic tool for evaluation purposes and is used for the purpose of distinguishing the various strengths as well as weaknesses that exists within the value chain process as noted by Audrestsch (1995).
CHAIN/NETWOK MAP:
Tesco's cost leadership strategic management initiatives are indicated in its agile and lean inbound logistics functions. According to Abeysinghe (2010), Tesco employs is leading market position as well as economies of scope as its main bargaining powers in order to achieve a relatively lower cost from its numerous suppliers. The other factors is the constant upgrading of the company's ordering system, in-store processes as well as approved vendor lists in order to induce…...
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References
Abeysinghe, T. (2010), 'Roaring tigers, rising dragon', Straits Times (Singapore)
Audretsch, D.B. (1995), Innovation and Industry Evolution, (Cambridge: MIT Press)
Hawkes, A (2011). Tesco reports record profits of £3.8bn
Oftentimes who is wearing a product is worth more than any other form of marketing. For this reason, Billabong has put together an elite team of board sports enthusiasts, from surfing to skateboarding, to snowboarding, to wakeboarding -- the top names all wear and endorse Billabong products. Surfing legends like Andy Irons, Taj Burrows and popular freestyler, asta, make sure the company brands are proudly displayed as they travel the world looking for the perfect wave. Endorsements and use by popular athletes have been the backbone to Billbong's success since Wayne "abbit" Bartholomew began wearing Billabong gear in the 1970s (Carpenter et al., 2010). Today, even a mention in an article that a popular board athlete prefers the brand, such as longboard champion Schuyler McFerran's preference for Billabong wetsuits ("How I hang," 2008), can drive company sales. Yet, all of these values will add up to nothing if distribution…...
Bellantonio, J. 15 Oct 2001, "Low-key Melmarc prints 18 million shirts a year for surfwear's big names," Orange County Business Journal vol. 24, no. 42, pp. 1 & 75.
"Billagong acquires East coast store chaing," 7 Jul 2008, Orange County Business Journal vol. 31, no. 27. p. 66.
Netflix
The value chain at Netflix is as follows. The inbound logistics reflects the content for which Netflix is able to secure distribution rights. The more content, the better the value to the consumer. The operations are mostly behind the scenes, but this is what allows Netflix to manage the physical DVDs in its collection. More importantly these days, operations are what allow for high-quality streaming, without which that line of business would have gone nowhere. ith respect to streaming, operations and outbound logistics are closely linked, the process happening nearly instantly. ith the DVDs, the use of USPS and the policy of not having deadlines work together to provide a positive customer experience. Marketing and sales provides value for Netflix as well, because the company is able to reach its customers, and promote new content to them. A key element of marketing is the queue, something that has attracted Netflix…...
sugar value chain MORE LABELS
Sugar: it gives us energy, in more ways than one. But this comes at a huge cost that is becoming more recognized, which will eventually have to be tallied up as population growth and resource depletion force humankind to re-evaluate consumption patterns all over the globe. The environmental consequences of sugar production have been apparent for centuries but are growing more urgent as production expands, releasing pesticides, crop pests and pathogens, high nitrogen and phosphorus concentration which poisons soils and water; carbon, dust and pollutant emissions from power generation and refining, coliform bacteria and radiation, to name a few examples (International Finance Corporation 1-8). hile more carbon emissions from sugar production are becoming offset by converting sugar byproducts into biofuels, this has its own consequences. To the list of environmental externalities from processing sugar, increased production drives deforestation with the resulting loss of emissions depletion, loss…...
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Works Cited
American Sugar Alliance. "We're number 1!." 2009 The Sugar Beat. Web. 20 May 2012.
Bunim, Juliana. "Societal Control of Sugar Essential to Ease Public Health Burden." 1 Feb.
2012. The University of California, San Francisco. Web. 20 May 2012.
Cai, Junning and Leung, PingSun. "Economic Impacts of Shutting Down Hawaii's Sugar
Value Chain Concept of McDonalds
The concept of value chain is helpful in understanding how business organizations create or lose value across their various activities and operations. This is primarily because value chain is based on the economic principle of competitive advantage over rivals. In this case, business organizations are considered successful by operating in segments where they have a relatively productive advantage as compared to others within the same industry. The significance of value chain in an organization's competitive and productive advantage is because it incorporates a series of activities relating to developing, manufacturing, marketing, and distributing products. An example of a company that has achieved tremendous competitive advantage over its rivals through effective value chain practices is McDonalds' Corporation.
Component of McDonalds Cost Structure
The growth and development of McDonalds Corporation has been characterized by widespread reputation for its value proposition. This value proposition is based on constant provision of…...
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References
Cantalupo, J.R. n.d., McDonald's Teaching Note, Mc-Graw Hill Education, viewed 19 November 2015,
Etienne, E.C. 2012, 'Dimensions of Global Operations Strategy In Service Business: A Value-Chain-Based Analysis', International Journal of Applied Operations Management, vol. 1, no.1, pp.1-18.
Nair, S. 2013, Wage Wars: McDonald's Stubborn Cost Structure, Yahoo Finance, viewed 19 November 2015,
Sharma, D.B. 2014, Value Chain Analysis, Slide Share, viewed 19 November 2015,
Logistics Planning
Businesses strive to influence product and service differentiation -- fully aware that the phenomenon occurs in the mind of the customer. Additive to differentiation of brands, products, and services, retailers are increasingly focused on differentiation of their stores as shopper destinations (Flint, 2010). Indeed, differentiation is a key element in the microbrewery industry, in which the customers' capacity for making product distinctions is foundational to competitive strategy. As a case in point, this paper will discuss the relation between differentiation and service-supply chain management in the microbrewery industry.
Service-dominant logic. As businesses move away from a product-focused to a customer-centric orientation, a service dominant logic has developed into a throughline (Flint, 2010). That is to say that, upon close examination of business configurations, service and servicing emerge as primary components of the value proposition -- fundamental components of the value chain. For their part, supply chain managers (SCM) address servicing…...
Mexico's Economic Role in Shaping Global Markets Mexico's economy is poised to play a significant role in shaping global markets in the coming years due to its strategic geographical location, growing consumer base, and competitive labor costs. 1. Gateway to North America Mexico's proximity to the United States and Canada grants it a unique advantage as a gateway to the North American market. With the implementation of the United States-Mexico-Canada Agreement (USMCA), Mexico has become an integral part of the North American supply chain, attracting businesses seeking to establish regional hubs and facilitate trade. 2. Large and Growing Consumer Base Mexico boasts a large and....
A literature review on the topic of rice value chain would analyze various sources discussing the different aspects of the rice production process, from cultivation to consumption. One source that provides an in-depth analysis of the rice value chain is the study by Cisse et al. (2014), "Analysis of the Rice Value Chain in Mali: the Case of the Office du Niger." This study examines the challenges and opportunities within the rice value chain in Mali, with a focus on the roles of various actors such as farmers, processors, and marketers. Another important source on this topic is the report by....
Key Findings on Rice Value Chain in Recent Literature Reviews 1. Market Segmentation and Specialization Studies indicate a growing trend towards market segmentation, with different grades and qualities of rice targeting specific consumer segments. Specialization among farmers and millers allows for greater efficiency and responsiveness to market demands. 2. Value Addition and Diversification Rice value chain analysis highlights the potential for value addition through processing, packaging, and branding. Diversification of rice production into niche markets, such as organic or aromatic varieties, can enhance profitability. 3. Food Safety and Quality Standards Growing consumer awareness of food safety and quality has led to stricter regulations....
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