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

Job order costing, Prepare Summary Journal Entries to record the( 1) requi...

Prepare Summary Journal Entries to record the( 1) requistion slips

What is the significance of performance budgeting, Significance of performa...

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

What are the advantages of budgetary control, What are the Advantages of bu...

What are the Advantages of budgetary control This budgetary control system helps in fixing the goals for the organization as a whole and concerts efforts are made for its achie

When to order-material control, When to order-Material control If deliv...

When to order-Material control If deliveries from suppliers normally take two weeks to arrive, then replenishment orders should be placed with them when the level of stocks rep

Budgetary controls, BUDGETARY CONTROLS Control in a business is the pro...

BUDGETARY CONTROLS Control in a business is the process of guiding organization into viable patterns of activity in an environment. The main purpose of a control system is to m

Cash forecasting and budgeting, A cash budget is one of the main important ...

A cash budget is one of the main important devices to plan and control cash payments and receipts. In preparation of a cash budget the subsequent points are considered. Cred

Management decision making, Decision-making is an integral part of all ...

Decision-making is an integral part of all management functions. It is the process of choosing the among alternative courses of action. Managers have to

Explain the going rate pricing, Going rate or follow the crowd pricing:- ...

Going rate or follow the crowd pricing:- In this method the firm price its products at the similar level as that of the competition. This method supposes that there will be no

Determine important factors while praparing sales budget, Determine importa...

Determine important factors while praparing sales budget The possible factors to be taken into account while preparing a sales budget are discussed as follows: 1) Past sales

Objective function, Objective Function Although the standard LP model c...

Objective Function Although the standard LP model can be either the maximization or the minimization type, it is sometimes useful to convert one form to the other. The maximiz

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