Value Chain Analysis views the organization as a sequential process of value-creating activities. Such an approach is very useful for understanding the building blocks of competitive advantage. In competitive terms, value is the amount that buyers are willing to pay for what a firm provides for them. And, a firm is profitable to the extent that the value that it receives exceeds the total costs involved in creating the product or service. When using value chain analysis one needs to view the concept in its broadest context, i.e., without regard to the boundaries of a given organization. That is, include suppliers, customers, and alliance partners.
1 – After reading about primary and support activities in a firm’s value chain, discuss how managers can create value by establishing important relationships among the value-chain activities both within their firm and between the firm and its customers and suppliers. 2 – Identify and discuss the key corporate social responsibility issues which are of major concern in an industry or public service organization of your choice. Compare the approach of two or more organizations in that industry or public service and explain how this relates to their competitive standing.