The paper 'Value Chains Outsourcing and Procurement' is a great example of a Management Assignment. The value chain approach is based on the competitive advantage that aims at the creation of sustainable and superior performance in an organization. The firm considers the utilization of the value addition concept under the value chain with the intention of developing sustainably competitiveness over the rival organizations in the business operations. The firms have different activities and operating systems that are linked together with the objective of improving the value chain. These operations and activities include the manufacturing of goods, outsourcing and purchasing activities, marketing, and distribution of goods and activities (Madhani, 2015, p.
17). The value chain has been considered as the framework that providing powerful tools essential in analyzing and providing strategic planning of the organization in the future. The analysis of the value chain is developed with the objective of creating the value of the organization while maintaining the same time and reducing the cost of operations. Therefore paper relates the significant approaches and aspects connecting the value chain, outsourcing, and procurement strategies that would enhance value addition and competitive advantage. Value chain analysis is a powerful tool essential in the identification of organizational activities and performance.
The value chain analysis tool helps the firm in recognizing its potential sustainability and how to achieve a competitive advantage over the rival companies operating in the same industry. In achieving competitive advantage, the organization is supposed to show the ability to perform duties using the value chain and value addition better compared to the competitor (Wong, Lai, & Cheng, 2011, p. 174). The notions provided by the value chain and value addition, frameworks are important in identifying the independent systems of the organization’ s operations.
It is important for the organization to consider utilizing the value chain systems in repositioning its performance by achieving a competitive advantage. In the value chain, the primary and support activities are essential segments that help in relating the value-added assessment in the firm’ s operation. The production activities in an organization are considered as the primary activities, whereas the supportive activities provide background for efficiency, effectiveness, and development in the organization’ s activities. Importance of Buyer-Supplier Power to the Management Buyer- supplier connection plays a major role in the organization management in revealing the value chain and firm’ s activities.
The Buyer- supplier helps in addressing the value chain analysis as management can identify the activities undertaken by the organization’ s operations meets the standards of the suppliers. The case study on AMI/Easton Negotiation Case Exercise focuses on aerospace hardware production, value chain, and value addition, hence providing the basis of buyer-supplier management. The buyers provide information to the suppliers of the products in the market in the respective organization (Mehta, 2016, p.
30). This information is essential as it helps the suppliers to focus on ensuring the distributed products meet the standard for competitive advantage. The Buyer- supplier power is determined when they make an organization to concentrate on production operations. This is through ensuring the value addition and meeting the demand of the buyers. The supplier and buyer determine the value addition standards. The management depends on the Buyer- supplier performance to relate to market competitiveness (Joglekar & Lé vesque, 2013, p. 1324).
In achieving a competitive advantage, the management through the Buyer- the supplier has to consider the demand in the market. This would help in improving the value-added activities and outsourcing high-quality raw material. Therefore, the Buyer- supplier power is essential in the provision of the value chain analysis to the management.
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