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How can doing a value chain analysis help in performance improvement and how can it get examined?
The value chain is a way in which organisations can examine their activities to understand which activities are key to their ability to make profits. For example, in a mass-production company, efficient inbound logistics and operations will be critical. Some companies do not produce but for them efficient outbound logistics , sales and marketing might be essential, supported by good technological development (eg Amazon).
Performance must maintained and improved in the identified important areas of the value chain if the organisation is going to improve its overall performance.
It could be examined by asking you to identify the company’s value chain activities and assess which are key.
See September/December 2019 Q1 as one example.
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