Question

1. Successful value chain management involves six requirements. Please explain each element of the six requirements thoroughly giving examples of each. What types of organizational benefits does value chain management provide? Are there obstacles to value chain management? Who has the power in the value chain? Explain your answers.

Answer 1

answer-

1- the six requirements of value chain management are-

a-Coordination and Collaboration- this is the first requirement in which value chain partners must be in coordination and collaborate with each other in order to make value chain efficient.

for example- Sharing of information with suppliers, investors, retailers or distributors to achieve the better value.

b-Technology Investment- this is the second requirement in which updated and high end technology leads to better performance, productivity and value to organization while outdated technology will result poor results.

for example- use of old machine which can produce 100 items while invest in new machine which can produce 500 items so new machine increase value to the organization.

c-Appropriate Organizational Process- it is the third requirement in which management should focus on improving business processes like demand forecasting, better budgeting, better performance review etc,

for example- a company can use performance review every year or organization can make performance review in many years so first option increase value to organization.

d-Leadership-Strong leaders are crucial to the success in value chain management. Good leaders earn the respect of their employees through sound management practices. Conflict management, motivation and direction are traits that strong leaders display.

for example- a transformational leader like Steve jobs would lead organization to innovation and create value to it.

e-Approaches in Employee/Human Resources- the management of Human resources effectively helps organization to create value. in this HR take approached like felxible job design, effective hiring, effective training etc

for example- if HR provide training to all employees then they perform better than employees having no training of work.

f-Organizational Culture and Attitudes

Organizations that foster strong cultural identity with positive attitudes tend to attract and retain top employees. Regular corporate sponsored activities are suggested to help build cultural unity and keep attitudes positive while boosting productivity.

for example- if organization having diverse workforce like old and young employees, male and female, black and white etc then each employee should respect each other. this remove conflicts and many other issues and make organizational culture positive.

types of organizational benefits does value chain management provide -

yes there are many benefits to have value chain management .this helps organization to have good customer service. this help organization to reduce cost of business and improve quality . it increase profit and market share of business. value chain management improve logistics and reduce inventory.

the obstacle it could have organizational barriers like rules, regulations, complex organization structure, business politics etc. also negative organizational culture and attitude can hinder the value chain management.If organization does not have required people and capabilities then it would be obstacle.

the power is in the hand of consumers because they are the one who determine the profit of any organization. if they do not like product or service of an organization then they can switch to another organization means competitors so they have the highest power in value chain.