The paper “ Risk and Value Chain Management for Duraseat Ltd ” is a potent example of a case study on management. A risk is a probability for either a liability, injury, or loss caused by negative effects that can be due to internal or external factors. Risks can be managed, but the process of managing risks should be carefully and effectively planned. Risk management is the process of risk identification, assessment, and mitigation to reduce risk to a level that is acceptable (Beaver & Parker, 1995). Approaches used in managing risks can determine the techniques, processes, and tools to be used.
A plan is important so as for describing the structure of the risk management process (Cagliano et al. , 2015). A simple risk management process involves identifying the risk, identifying the causes of the risk, identification of control methods, the establishment of the likelihood and consequences, pick out risk rating descriptors, put in additional control methods, decision-making, and monitoring and review (Das, 2006). A value chain can be described as activities organizations in specified markets go through to ensure the production of valuable goods and services for the markets (Schmitz, 2005).
The value chain is based on business management, and its main objective is the integration of communication and improving the levels of cooperation between members of the production process so that customer satisfaction and on-time delivery are achieved. In the process of value chain management, the customer is viewed as the primary source of value (Sekhar, 2007). The value of the customer is created through product demand, and focus, therefore, becomes creating value in the eyes of the consumer.
The process of value chain management is effective when divided into two. The first being the primary activities including production and logistics. The second is support activities that include marketing, information and technology, and human resource management (Project Management Institute, 2008). To create an effective and profitable value chain, it is critical for firms to establish a connection between customer value and what the firm produces. The main focus of value chain management is in research and development, marketing, innovation, economic factors, analysis of social trends, and testing of products.
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