Write an article analysis paper differentiating between global value chain and global supply chain management. Include in your analysis definitions of supply chain and value chain. Refer to Internet resources and additional references. Please also answer the following questions:
A. What are the essential components of a global value chain?
B. How does each component add value to the stakeholders?
The response addresses the queries posted in 1049 words with references.
//In this paper we will learn about the global value chain and global supply chain. We will also learn about the differences between both. Further, we will learn about the different components of global value chain. We will also learn about the value, which is added by each component of the global value chain.//
Value chain: The concept of value chain was proposed by Michael Porter. Value chain analysis is a tool for identifying the ways in which the value of a firm can be created or enhanced. The concept of value chain is used by the firms in order to identify the factors, which will help them in building a competitive advantage. In this analysis, each component used and every attribute of the supplier's product is properly analyzed to ensure that no component or feature is added to the product that does not add value to it. In other terms, value chain is also defined as a chain of business firms or market players working in order to satisfy the customers' demand for a specified product (What is a value chain -- longer definition, 2004).
Supply chain: Supply chain is defined as the flow of material from their supplier to the ultimate user. Supply chain comprises of the various activities like purchasing of raw material, manufacturing, storing, transportation and supply to the customer, etc. Mainly, it is the channel of distribution of products from the manufacturing units to the end user. Supply chain actually refers to the whole business chain, encompassing procurement of inputs, in bound logistics, conversion of inputs into products, physical distribution/ marketing logistics and channel function, which finally take the end products to the ultimate consumers (Supply Chain Definitions).
//Now, we will discuss about the differentiation between global value chain and global supply chain ...
This response addresses the queries posed in 864 Words, APA Reference