Business management A value chain approach

The value chain is a major focus in today’s business world, and many companies and managers allocate considerable resources to understanding and analysing their value chain. The main reason for doing this is either to eliminate activities that do not add value, or to improve on activities that do not add sufficient value. In order to ensure optimum customer satisfaction, businesses must integrate the activities of various departments and functions. This demands a sound understanding of the chain of activities and their interrelationship with other business activities.