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Value chain analysis relies on the basic economic principle of advantage — companies are best served by operating in sectors where they have a relative productive advantage compared to their competitors. To conduct a value chain analysis, the company begins by identifying each part of its production process and identifying where steps can be eliminated or improvements can be made.
To understand how to conduct a value chain analysis, a business must first know what its value chain is. The process of actually organizing all of these activities so they can be properly analyzed is called value chain management. According to LearnMarketing, Porter suggests that activities within an organization add value to the service and products that the company produces, and that all of these activities should be run at optimum level if the organization is to gain any real competitive advantage. Factors constraining the maximization of these opportunities (for small-scale producers, women, youth, etc.). Private-sector, public-sector and civil society entities to partner with to achieve these upgrading strategies.


Recommendations of how to support these value chain upgrading strategies in a way that is gender equitable, promotes improved nutrition (where relevant), and is inclusive of the poor and other marginalized group.
While value chain analysis is a tested and proven tool, other standards for analysis aim to embrace a business model that is not strictly business-to-consumer.
The views expressed on this site are my own and do not necessarily represent the views of the Department of Economics or the University of Oregon. These activities should be run at optimum level if the organization is to gain any real competitive advantage.
The goal of value chain management is to ensure that those in charge of each stage of the value chain are communicating with one another, to help make sure the product is getting in the hands of customers as seamlessly and as quickly as possible.
If they are run efficiently, the value obtained should exceed the costs of running them — for example, customers should return to the company and transact freely and willingly. This stage includes things like installation, training, maintenance, repair, warranty and after-sales services.


Specifically, the Leveraging Economic Opportunities (LEO) Market Systems Framework aims to help companies that rapidly respond to changing market conditions and interface more broadly with household and communities than the traditional business assumed by value chain analysis. The end result is that customers derive the most benefit from the product for the cheapest cost, which improves the company's bottom line in the long run. For companies that produce goods, the value chain starts with the raw materials used to make their products, and consists of everything that is added to it before it is sold to consumers.



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the definition of business management and administration



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