Value Chain Analysis

Michael Porter was a business researcher who made popular the concept of a “value chain” that is common to most business organizations. Research Porter’s value chain and answer the following questions:

  • How do organizations attempt to improve their performance through the use of value chain analysis?
  • To what degree is outsourcing consistent with the value chain concept?
  • What have been the impacts of organizations who have engaged in outsourcing in recent years?
  • What is the reason for the resistance that some organizations face when they propose outsourcing some of their key organizational functions to other companies (whether those companies are in this country or a different country)?
  • Give an example of a business or industry that was forced (through competitive pressures) to outsource one or more business functions if they wished to remain competitive.

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