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Value Chain Reconfiguration
University of Borås, School of Engineering.
2008 (English)Independent thesis Advanced level (degree of Master (One Year))Student thesis
Abstract [en]

Integration of operation management goals with the mission of organization requires adoption of measures capable of pulsing mission accomplishment situation while operations are going on. Supply chain, as an increasingly used concept in operations management, could be supported by the concepts of customer satisfaction and profit margin to get integrated with main goals of any for-profit organization. Value chain view provides such insight and lets the mission of the organization remain in focus while lowerlevel decisions and functional processes are dealt with. Every activity in a value chain could be cost driver and / or value driver. Configuration of these cost and value drivers refers to their locational and relational position. After agreement on what are going to be core values for the organization, relative positions of value chain activities should be consciously reviewed periodically to identify opportunities for contributing to core values of organization through repositioning or redesigning and strengthening value activities. The term value chain reconfiguration implies to such strategic revision decisions. Opportunities – and threats – for improving performance of the organization not only lie within internal chain of value activities of the organization, but also could be found out of the organization boundaries and among its extended value chain. Acquiring of external gains needs sound analysis and cost and benefit evaluations for making decision regarding the way of reacting to the identified opportunities. Virtual value chain orchestration as proposed by its introducer provides a framework for identifying and capturing such opportunities. Gauging the results of reconfiguration of the value chain, calls for implementing meaningful criterion so that it reflects captured value in accordance with the destined goal. Taking profit margin of the value chain as master value for organization, the thesis work proposes usage of a less-known profitability indicator, economic value added (EVA) as the measure which should be focused on in order to evaluate success or failure of firm-level value chain reconfiguration efforts.

Place, publisher, year, edition, pages
University of Borås/School of Engineering , 2008.
Series
Magisteruppsats
Keywords [en]
value chain, value measurement, economic value added
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:hb:diva-19042Local ID: 2320/3910OAI: oai:DiVA.org:hb-19042DiVA, id: diva2:1310976
Note
Uppsatsnivå: DAvailable from: 2019-04-30 Created: 2019-04-30

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CiteExportLink to record
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Citation style
  • apa
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Output format
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