Value chain analysis , Managerial Accounting

Assignment Help:

VALUE CHAIN ANALYSIS

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.

 

1920_diagram.jpg


Related Discussions:- Value chain analysis

Cost-price-total revenue and quantity changes, Quasar Computers are the fir...

Quasar Computers are the first all optical notebooks and their profit largely affects the manipulations in cost, price, total revenue and quantity changes. The market analysis show

What is solvency ratios, Explain Solvency ratios The term solvency refe...

Explain Solvency ratios The term solvency refers of the ability of a concern to meet its long term obligations. The long term indebtedness of a firm include debenture holders,

Illustrate the important steps of budgetary control, Important steps of bud...

Important steps of budgetary control There are certain steps which are essential for the successful implementation of a budgetary control system. They are as follows: 1) Or

Determine the working capital needs, Himalaya Ltd.'s Profit and Loss Accoun...

Himalaya Ltd.'s Profit and Loss Account for the year ended on 31st December 2005 is specified below. You are needed to determine the working capital needs under operating cycle met

Explain value added analysis and top management styles, 1. Explain Value Ad...

1. Explain Value Added Analysis along with the major factors included in Management Accounting Analysis. 2 Identify the several top management styles and define their implicatio

Variables, Variables Unrestricted variable Yi can be expressed in terms...

Variables Unrestricted variable Yi can be expressed in terms of two non-negative variables by using the substitution: Yi = Yi' - Yi'', Yi', Yi'' ≥ 0 The substitution

How much must you deposit each year to reach your goal, Right now you are 2...

Right now you are 20 years old and you have decided that you want to have $2,000,000 in the bank when you turn 65 years old. How much must you deposit each year to reach your goal

Treasury management, Treasury management is explained as "the corporate han...

Treasury management is explained as "the corporate handling of all financial matters, the production of external and internal funds for business, the management of cash flows and c

Zero-base budgeting , Zero-Base Budgeting Zero-Base Budgeting (ZBB) wa...

Zero-Base Budgeting Zero-Base Budgeting (ZBB) was first developed and introduced for business by Peter A. Pyhrr. From this starting ZBB has been explored and adopted by many o

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd