The Impact of Value Chain Analysis on Profitability of a Firm
Introduction
Value chains are key framework for understanding how inputs and services are brought together and used to grow, transform, or manufacture a product;
how the product then moves physically from the producer to the customer; and how value increases along the way.
The value chain perspective provides an important means to understand business-to-business relationships that connect the chain, mechanisms for increasing efficiency, and ways to enable businesses to increase productivity and add value.
It also provides a reference point for improvements in supporting services and the business environment. It can contribute to business initiation and better linking of small businesses with the market.
Increasingly, the value chain approach is being used to guide and drive high-impact and sustainable initiatives focused on improving productivity,
competitiveness, entrepreneurship, and the growth of small and medium enterprises (SMEs) (World Development Report, 2008).
Objectives of the Study
In order to give direction and meaning to this study, the main objective of this study will be to evaluate the impact of value chain analysis on profitability of a firm. Other specific objective will be to ascertain
- The relevance of value chain analysis on profit making in a firm.
- Strategies needed for effective analysis of value chain.
- The relationship between value chain analysis and benefits derived by a firm from analysing the chains of production.
- The reasons for analysing the chains of production.
- The impact of value chain analysis on firm over a period of 10years.
References
Akenbor, C. O. (2011).Strategic Management Accounting and Competitive Advantage in the Manufacturing Industry; A Study of Selected Manufacturing Firms in Nigeria” An Unpublished Ph.D Dissertation Submitted to the Department of Accountancy, Nnamdi Azikiwe University, Awka
Albino, V., Carbonara, N., and Giannoccaro, I. (2007). Supply chain cooperation in industrial districts: A simulation analysis. European Journal of Operational Research 177(1): 261-280.
Angel Gurría ( 2012). The Emergence of Global Value Chains: What Do They Mean for Business . G20 Trade and Investment Promotion Summit.
Axelrod, R. (1997) The complexity of cooperation: Agent-based models of competition and collaboration.
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