engleski

Methodological Approach To Application Of Porter's Value Chain

All activities carried out within an organization represent one chain. These activities give a certain value to the final product. Porter's value chain represents the foundation for the analysis of processes of the organization. It breaks down the organization, its suppliers and consumers into specific but interrelated activities. In order to determine which activities have a negative impact on the business outcome, ie which activities add value and which generate costs, it is necessary to conduct a value chain analysis, which gives an insight into the individual activities of the organization, which ultimately leads to the determination of one of the generic strategies. Organizations must, at the very beginning of their business, carry out analyzes and decide what and how to produce and whether it will represent value to the customer. Therefore, it can be said that the concept of value chain represents one of the highest levels of observation of business activities within the organization. The example of Omco Croatia d.o.o illustrates the methodological approach of applying Porter's value chain.

Porter ; value chain ; strategic management ; competitiveness

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