Essay The Value Chain Model Is Best

1359 Words Mar 8th, 2016 6 Pages
The value chain model is best described as a useful tool that is used in an organisation to maintain its competitive advantage over its rivals. The value chain consists of a sequence of events that incorporates activities which generate and shapes its values at every stage in the business. This model evaluates the value in every specific area or activity that would improve the company’s products or services. The main goal of the value chain model is to see whether the activities conducted within and around the organisation can provide the best value for money with the products and services being offered. This would also give management an idea of their competitive fortitude in the world of business.
For an organisation to function efficiently and effectively, there are two main functional areas which are important for any organisation to run smoothly, they are the primary and support areas. The primary activities consist of raw material, operations, production, distribution, marketing and sales and services. The support activities are those that will give aid to the primary system but does not contribute to the cost. The primary activities, however, provides management with a view on how the operations are being performed and what areas need to be improved. This area consists of human resources, procurement department, technology and infrastructure.
These functions are important to a company as their profit margin is affected positively or negatively by how…

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