Essay: Constituents of Value Chain Management Model

Key primary activities identified by the Value Chain Management model include the inbound logistics, the internal operations that take place, the subsequent outbound logistics, subsequent marketing and sales activities as well as the service division of the organization. The support activities are placed in a manner so that their implementation occurs in simultaneous unison with each primary activity in the organization. The support activities include procurement, human resource management activities, and technology development. Together, these support activities are put into place to function alongside the primary activities through the organization’s infrastructure. The purpose of this research is to bring about an increase in the margin of the return of the organization.

The purpose of the value chain is to form a working relationship between departments and/or functions that provides a benefit for each associated department/function. Value Chain Management therefore calls for the effective communication of relevant information from one department to another and seamless integration between the organization’s internal and external functions and processes (Danskin, Englis, Solomon, Goldsmith, & Davey, 2005).

In today’s world value chain is considered as an important element for different organizations and it is treated as the Holy Grail for many organizations that believe in changing the conventional approach.  The phenomenon of value chain management is usually defined as high level model and it is an activity in which the businesses receive raw materials as inputs and then in the process stage a certain level of value is added in the raw materials and ultimately the final value added product is supplied to the customer (Walters & Rainbird 2007).