The relationship of the value chain to the cost of the future business

Abstract

The value chain is a table that includes activities. And all processes in the company, from human resources, technology, procurement, procurement, raw materials, production, marketing, sales until the product reaches the consumer. The activities are clearly separated into 2 parts to avoid confusion. Activities that support a company, such as technology development, human resources, procurement, and key company activities such as raw material input, production, preparation for distribution, marketing, sales, and after-sales services, etc. A value chain is a combination of systems by which a company or organization used to generate income In other words, the value chain consists of various subsystems. Used to create a product or service this includes the process from start to finish.

        Value chain analysis helps executives and managers of the organization can see the whole business and when trying to make a company's value chain in each section, it will gradually improve one by one. Starting with the easy-to-edit section and get good results first once you've experienced these subsections, you can begin to edit larger ones, because Value Chain Analysis isn't for just anyone in your organization. But there are all departments in the organization that have functions in each part of the company. To talk and discuss how each step of the value chain can be implemented in the best interests of customers and the company. And the company's strategy to be clear first so that the whole organization knows the goal of creating value and what is the cost management for? And why is it so widely effective.