Value chain analysis , Managerial Accounting


Every firm is a collection of activities that are executed to design, generate, market, deliver and support its products or services. Value chain analysis is a systematic way of examining all activities that a firm performs and how they interact.

The value chain disaggregates the firm into strategically separable activities in order to understand the behavior of costs so as to create competitive advantage. A firm creates competitive benefits by:

  1. Finding new manner to conduct activities, example, improving efficiency via automation.
  2. Managing the linkages among activities better e.g. spending on better product design may reduce after sales service costs.
  3. Managing the linkages among customers and suppliers better.
  4. Value activities are physically and technologically different activities a firm executes. These are building blocks by which a firm creates products and services valuable to its customers. The value chain by Michael Porter is as shown below.



Posted Date: 12/8/2012 5:44:26 AM | Location : United States

Related Discussions:- Value chain analysis , Assignment Help, Ask Question on Value chain analysis , Get Answer, Expert's Help, Value chain analysis Discussions

Write discussion on Value chain analysis
Your posts are moderated
Related Questions
Liquidity ratios Liquidity refers to the ability of concern to meet its current obligations as and when these become due. The short term obligations are met by realizing amount

Explain Programmer budgeting According to burkhead According to burkhead a program budget serves a different purpose than performance budget. A performance budget is useful fo

Decision Making Environment There are four main environments within that decisions can be done. These are: •    Certainty •    Risk •    Fundamental uncertainty •    Compet

STANDARD COSTING AND BUDGETARY CONTROL In practice, the terms standard cost and budgeted cost might be used interchangeably. Whereas it is possible to have budgeting without s

Question: (a) The demand for the output of a certain company is very elastic and modern plant recently installed is capable of greatly increased production. Output at present

No further banks were the sole source of funds for working capital requires of the business sector. At current more finance options are obtainable to a Finance Manager to allow smo

As an MBA Managerial Accounting Student, John has asked you to evaluate the alternatives available and make recommendations as to the best course of action, and present it in a Rep

IF net income totaled $18,000 for one year, beginning assets were $100.000 and ending assets were $140,000, then Return on Assets for the year as a percentage will be?

Significance of performance budgeting Performance budgeting will help the management of companies by introduction of management objective to improve performance. Further it wi

THEORY OF METAGAMES This theory appears to describe how most people play non-zero sum games involving any number of persons. Prisoner's dilemma is an example of this; the ai