MANAGING THE VALUE CHAIN

Managing the Value Chain



Managing Value Chain

Company Overview

Woolworths established in December 5, 1924 in Sydney's Imperial Arcade. It is from the one of the world's largest supermarkets. Across the globe, Woolworths had more than 1000 supermarkets and caters more than 13 million customers in Australia only.It has integrated the best value chain management system. Woolworths have many brands under it such as Safeway, Dick Smith, Big W, Dan Murphy etc. and all these brands are still using an ancient stand alone Auto stock R ordering system. The paper defines the managing value chain at Woolworth.

Managing the Value Chain

Managing the value chain is very important for Woolworth's business management and organizations to achieve competitive advantage and gain customer's value. Value chain management in Woolworth's is activities that contribute to the value of the product more than its cost. The Woolworth's product passes through many phases with value added in every phase to serve customers with finalized value-added product.

According to Woolworth's managerial perspective, Supply Chain Management is also very essential. Objective of this assignment is to constitute assessing the model of managing the value chain. Its main purpose is to judge the significance of managing value chains in different sectors (Porter, 2008). The underlying goal of the projected dissertation is examining and reassessing the execution of managing value chains in organizations and in what manner the value chain management has an impact on the organizations.

The management of the value chain model is a collection of nine comprehensive value added operations running inside the firm. The objectives from primary activities are to augment value, which increases the price of supplying the products and services of Woolworth's. Support activities help to create competitive advantage. To assess the performance of executing suitable management of the value chain in Woolworth, the primary and secondary data can be examined in the projected dissertation.

A Managing value chain can be understood as a series of activities that lead to the creation of a product. Products pass through all activities of the chain in order, and at each activity, the product of Woolworth gains some value. Also, the gross margins increase with every step of the Managing value chain. The chain of activities gives the products more added value than the sum of added values of all activities.

Every product moves through a “chain” of activities from resource extraction to production and distribution while in the process gaining value at each step in Woolworth. Value and cost, in this concept, are not the same: the cost of a step in the chain may be relatively, but it adds greatly to the value of the good. Conversely, a cost may be relatively high, but the value added is very low.

The initial concept of the Managing the value chain introduced by Harvard business professor Michael Porter in his 1985 book Competitive Advantage: Creating and Sustaining Superior Performance, and further developed in subsequent work. Competitive advantage represents a company's ability to sustain its position in the industry, maintaining levels of profit ...