Value Chain Management

Value Chain Management is a way of looking at how a business or organization works from start to finish. It looks at all the different steps it takes to make a product or service. This can include designing, producing, marketing, and selling the product. It also looks at how each step adds value to the product or service. For example, if a company starts out with raw materials and needs to make a toy car, the first step might be to design the car. This adds value to the product by making it look attractive and desirable. The next step might be to create the parts, like the wheels and the body, which adds value to the product by making it durable and sturdy. Then, the company might need to market the toy car, which adds value by letting people know it exists and why they should buy it. Finally, the company might need to sell the toy car. This adds value by putting the car in the hands of the customer who can enjoy it. Value Chain Management helps businesses or organizations make sure each step adds value and works together towards a common goal, which is usually to make the product or service better, faster, and cheaper. Fun Fact: Value Chain Management was first developed by a business professor at the Harvard Business School in the 1980s.