VALUE CHAIN

Value Chain



Value Chain

Introduction

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

According to managerial perspective, Supply Chain Management is very essential (Krajewski, 2007, 123). The Objective of this research constitutes assessing the model of the value chain for Rolls Royce. Its main purpose is to judge the significance of value chains in different aspects of the enterprise. The underlying goal of the projected assignment is examining and reassessing the execution of value chains in Rolls Royce and in what manner the value chain have an impact on the Rolls Royce.

Rolls Royce is one of the pioneers in the automobile industry with more than 100 years of manufacturing experience. The company has gone through various phases of evolution and restructuring involving both its resources and management. Value chain remains an important aspect of the performance and success of Rolls Royce over the years. Moreover, the company also values its human resources with great significance and acknowledges its role for the achievement of its mission and strategic objectives.

This paper aims at discussing the concept of Value Chains and their significance to Rolls Royce, with special reference to its human resource and related procedures and processes adopted in the company.

Value Chain Analysis for Rolls Royce

The explosive growth of e-commerce has added urgency to competitive analysis, involving not only established multinational firms but also an increasing number of entrepreneurial start-ups leapfrogging geographical constraints via the Internet.

The value chain proposed by Porter in 1987 is considered one of the most prosperous for internal analysis of the company. Rolls Royce considers this approach as a key contributor of building the value chain in Rolls Royce motors. In their approach considers all those activities that increase the usefulness of the product or service that the customer will receive, create value.

Various essential approaches like waste reduction, customer service, and employee empowerment are also integrated inside the value chain model (Krajewski, 2007, 123). Management system of the value chain consists of various activities in the company. They are primary and support activities. The primary activities consist of inbound logistics, services and maintenance, marketing and sales, outbound logistics etc. These activities add value in the organisational procedures. The value chain identifies two different types of activities: primary activities and support activities (Ronald, 2010, 89).

According to research, Rolls Royce motors resources are the main determinant of competitive advantage and firm profitability

As such, the main concern of managers should be in selecting, acquiring, and managing resources superior to their competitors (Duivelaar, 2007, 56). Research proponents assert that ownership or control of strategic assets determine which firms earn higher profits and which firms do not.

The objectives from primary activities of Rolls Royce are to augment value, which increases the price of supplying the products ...