Introduction
The goal of this essay is to explain the various functions and strategies of value chain management and discuss how to implement them in a flat screen display business, so as to improve the performance of the operating system which ultimately will increase the efficiency and quality of production thereby helping them gain a competitive advantage over their competitors. Which will result in increased the profits for the business.
Value Chain Management: Development of a set of functional-level strategies that increase the performance of the operating system a company uses to transform inputs into finished goods and services. (George and Jones, 2006:267)
Operating System: The different functional activities an organization combines and uses to acquire inputs, convert inputs to outputs, and dispose of the outputs. (Answers, 2006:1)
Value chain
Refers to the idea that a company is chain of functional activities that transform inputs into an output of goods and services that customer's value.
? Production function
? Responsible for the creation of a good or service
? Marketing and Sales function
? Increase value customer perceives to be contained in a product
? Service function
? Provide after-sales service and support
? Materials management function
? Controls the movement of physical materials through the value chain
? Information systems function
? Controls the electronic system for managing inventory, tracking sales, pricing products, etc.
(Michael E. Porter, 1985:37-43))
Therefore one must divide the busin ...