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Porter's value chain (construction, deconstruction, reconstruction) and values management

Journal: Marketing and Management of Innovations (Vol.6, No. 2)

Publication Date:

Authors : ; ;

Page : 121-133

Keywords : Porter’s value chain; analysis (deconstruction) and reconstruction of value chain; supply chain efficiency; values management;

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Abstract

The aim of the article. The phases of the Porter's value chain are distinguished: construction of chain value Porters model (Stage1); deconstruction identifying contradictions, disorganizing elements of unnecessary processes that do not add value (Stage 2); reconstruction (synthesis) creates a new value chain (Stage 3).The results of the analysis. The principles of convergence of value and supply chains are identified and the need to focus on supply chain performance is proved. The dependence of design value chain/supply chain on the chosen general strategy and the need to subject its reconstruction process of deconstruction + reconstruction in case of changes or modifications as to this strategy is grounded.The impacts on the creation of value in the Porters chain are accepted. The need to identify for each working block of micro factors that affect the financial factors (macro factors) that is net and operating profit, investments into fixed and working capital, the cost of companies capital is proved. Such classification allows to determine what types of management actions or motivations for managers of lower level must be selected.It is revealed that in addition to measurable factors-generators on cost to the value chain the indirect (mediated) factors have an impact, especially when the management is replaced by objectives and values of enterprise management use. It is proved that the problem of environment and society in the concept of sustainable development, social responsibility, marketing value of 3.0 outlines another group of factors influencing the Porters value chain, as evidenced by the current trend of prioritization of human values.It is proved that companies, especially global ones, give the increasing domination of human values in B2B and B2C transactions at the maturity stage in their life cycle in the structure of forced strategic objectives and make adjustments by modifying the cited above vision and mission. It somehow diminishes the status of business goals, and thus causes permanent target conflicts, the removal of which requires appropriate mechanisms and solutions in the management system.The experience of famous companies from the standpoint of the theory of value chain led to the conclusion that they are often subjected to radical restructuring both in primary and in ancillary activities that caused high volatility and challenge for market competition, and led to significant changes in the structure of supply chains.A strong link between enterprises chosen strategy, life cycle of enterprise and the need for deconstruction and reconstruction of the value chain, which serve as a tool of design of the effective value chain is identified. It is proposed to implement this procedure using the matrix of separation processes in coordinates adding valuexoption to remove.It is proved that the implementation of procedure design deconstruction reconstruction of value chain must be addicted simultaneously by polychriteral assessment of the supply chain for its performance in the aspects of customer service, generation of income (profit), flexibility, innovation, compliance of business to the human values.

Last modified: 2015-07-09 22:22:10