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Porter’s Value chain

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Porter’s Value chain

  • This topic has 1 reply, 2 voices, and was last updated 3 months ago by Ken Garrett.
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  • May 8, 2022 at 3:55 am #655148
    Noah098
    • Topics: 936
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    Sir could you help me understand what kind of questions can be asked around porter’s value chain? Apart from an obvious key word such as “value chain”, how are some other ways the examiner could indirectly allude to it?

    May 8, 2022 at 5:53 am #655157
    Ken Garrett
    Keymaster
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    Probably wouldn’t be directly required, but hinted at like “analyse toe company’s operations” or “analyse how the company makes profit”.

    The value chain reflects all a company’s activities and it is the interaction of these that allows profits so that customers are willing to pay more that the goods cost to make. Ef high automation allowing flexibility and high quality, massive buying power allowing low maerial costs, a distribution system that customers like eg home deliveries of groceries.

    The VC should let you analyse what makes the company succeed ie where does it add value.

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