VALUE CHAIN

A business outfit in Mooloolaba - good ROI for 2010

Value chain is the sequential of primary and support activities of an enterprise performs where it turn into a value added outputs for its external customers. According to Michael E. Porter, it is a connected series of organizations, resources, and knowledge streams involved in the creation and delivery of value to end customers.

Value Chain in definition is different from ‘flow process’ which is more being defined as a method in visualizing and documenting the stages involved in performing a certain business procedure. It might take the form of flow charts showing the process steps by steps where the inputs to create a deliverable output. It might be product or services.

From the definition, we could see clearly the differences between Value Chain and Flow process. Analysis could be done on both of the said activities in improving a company business. However to induce profit maximization, value chain is more crucial to be evaluated and later action to be take in ensuring the corrective actions are taken.

Normally in the process of profit maximization or turning around company from losses to profit, value chain is being analyses right to the level of efficiency which involves cost such as man-hours.

For those students who have studied strategy would be much easier to understand the difference between these two. Hence they would the first mover in the organization to lead the company turnaround for profit maximization.

A few Malaysian Students at USC, Queensland

 If we learn strategy, value chain analysis would be in the section of internal analysis. Despite of short hours of learning value chain analysis in the subject of strategic or crafting and executing strategy, the importance of value chain has been known as one of the most important activities to be made for organization highest ROI (Return of Investment).

In my experience of undertaking the company turnaround activities, I have personally used the value chain activities as the core for profit maximization. I have even done research that proves the restructuring is a wrong and non-economic equitablity process to be taken by companies. There is no sure return and reduce even the ROI of the organization despite they might have profits after the restructuring. However the impacts of restructuring are more economic disastrous result to the people involved and even to the government locally and national level.

Assignment:

Select a small or medium size business outfit, analyse the business challenges faced by the organization and propose solution for its business challenges in ensuring its sustainability.

 

Important note:

You must insert in the appendix:

1. Copy or scanned business registration of the business

2. relevant picture of the business outfit

3. Some supporting documents used for your analysis e.g. financial statements.

4. Charts or table to be inserted

 

 

Note:

Word Counts:                3,000 -3,500 words

Font:                            Arial

Size of font:                  12

Spacing between lines:  1.5

Plagiarism work shall not be marked.