Value chain in business pdf

CC is the set of production processes raw materials, is a systemic perspective because it integrates a variety of facets labour, etc. The old and Wallerstein, The significance of CC is very simple: take mechanisms of the production process of companies are adapted, a final consumption good and list all the inputs that made it possible reorganized and reoriented.

With the integration of the local to obtain that good - the raw materials, the transformations carried production into international markets, the GVC approach provides out, the labour used, the intermediate consumption, the transport; a holistic view of trade Raikes et al. If the final good is a garment - a shirt for example - the chain would include the 2. It is crucial governance and territorial governance Bakkour, From to broaden the understanding of CC rather than to retain it as a an enterprise perspective, governance is an essential element in mere shift from input to output.

Governance in the GVC refers to decision sheds light on the existence of structures linking actors each other management systems through actors involved in product design, at the firm level and across transnational actors at the end of the the strategies that underpin management decisions and methods, chain Bair, From the same perspective, governance establishes a GCC developed in the s Gereffi, ; Gereffi and relationship of power and authority that determines how financial Korzeniewicz, , are analyzed through three dimensions: An and material resources are allocated across the various links in input-output structure, a territoriality a geographical area and a the chain Gereffi, The application field of the GCC can be found in all domains of activity: industrial, agricultural, services, In general, two types of governance are distinguished in the GVC: etc.

Other GCC b; Cheriet, In BDC, large distribution firms control studies have focused on tourism Clancy, , fresh fruit and marketing, design, brand and standards management, and product vegetables Raynolds, , and automobiles Kaplinsky and development without capital links with producers.

Agri-food Morris, , etc. The GVC end consumer. Multinational companies control the production In the s, the concept of chains aroused questions especially system and are responsible for setting prices UNIDO, This management model inclusive of all the activities necessary to obtain finished products corresponds to the Fordist model of vertical integration: upstream in a globalized context Gereffi et al.

The GVC is a tool for actors have the technical skills and capital necessary to produce contextualized analysis of transnational value chains, organized in goods and services. As a result, they establish barriers to entry complex intertwined intra- and inter-business networks in which through economies of scale Tozanli and Gautier, ; Keane, the hierarchy of activities, the decision-making systems, the ; Gereffi, The main difference between BDC and power relations and the relations with the territory are profoundly PDC lies in the fact that the former does not have processing changing Palpacuer and Balas, In these governance models, the links households, businesses and governments in the global transaction cost theory finds its application.

This investment engenders opportunistic behaviour in coding specific assets. The products are complex and the or the implementation of protective measures by each party to the suppliers have high level skills. It is characterized by frequent exchange Williamson, The authors Gereffi et al.

The supplier is somewhat dependent on the buyer. Hierarchical governance occurs when products are In market governance, market relations are dominant when complex and suppliers are incompetent in the production process.

An asset is said to be specific Gereffi et al. The market governance model is characterized 3. Authors Gereffi et al. An Overview of the Tea Sector in Burundi ; Gereffi and Fernandez-Stark, conceive the modular In Burundi, tea is produced in five areas - Rwegura, Teza, Ijenda, governance, the form of governance in which the buyer is somehow Tora and Buhoro - located in the Mugamba natural region.

In demanding and imposes specific standards to the characteristics of each area there is a processing factory for green tea leaves from goods and services products are complex. Here, suppliers have its plantations industrial blocks except the Ijenda plant and full responsibility for the use of skills and techniques.

All expenses green tea leaves from the villagers - nearly 60, smallholder incurred are in their own account for customer satisfaction. The tea farmers. Each actor has a free choice of partnership au Burundi OTB.

When the tea plant was introduced in Burundi in 4. The Captive Chain s , its fertilizers NPK mineral fertilizers were subsidized The survey revealed that in addition to providing mineral and tea plants are distributed free of charge to smallholder tea fertilizers NPK on credit to smallholder tea farmers, public farmers. Grant were awarded to farmers who had planted tea trees. When selling small tea farmers by the governmental tea factories.

The green green tea leaves, small tea farmers who have not weeded their leaf is sold to the nearby tea factories at a price set by OTB. The plantations are targeted and called to explain this behaviour. More price is the same in all five tea factories. Despite considerable rigorous control is done for green leaves of those who have not fluctuations in the price received for its tea, OTB changes tea leaf done the weeding.

Dry tea is sold mainly the mineral fertilizer NPK until their plantations are weeded. In , 10, tonnes of dry tea were sold. Rough harvest made without respecting the tea sector in Burundi. Two specific objectives were pursued. On the one hand, we were interested in shedding light on the form of governance exercised upstream of the chain, i. Uprooting a tea plant is done if the small farmer tea farmers, and on the other hand the form of governance finds that the tea plant is of poor quality usually large leaves , applied downstream of the chain at the national level.

To achieve and he must replace the uprooted plants with other tea plants. If Thus, the survey was conducted among smallholder tea this action is done by the tea farmer alone, he is obliged to replace farmers in the Ijenda and Teza tea-growing area and the different the uprooted tea plant in addition to paying a fine ranging from managers of the processing factories located in these areas.

Due , BIF to , BIF Depending on the size of the field to time and resource constraints, these two areas were chosen occupied by the uprooted plants, the small tea farmer may be because of their geographical location - they are located near sentenced to imprisonment. Stratified random sampling was used to give Unlike tea which price has been BIF since , prices all small tea growers an equal chance to be selected for the entire of foodstuffs are volatile in the country.

Since , there has tea acreage of the two surveyed areas Marshall, Qualitative been a continuous rise in commodity prices in both rural and data were collected through semi-structured interviews and focus urban areas.

The volatility of commodities makes smallholder groups were organized with smallholder tea farmers. Secondary tea farmers less interested in tea growing. The possibility of data were also collected to complete the analysis. The analysis and interpretation of qualitative data are carried out through extending tea plantations varies from one area to another: only content analysis Patton, ; Duriau et al. The main reasons for non-extending are essentially the scarcity of farm land and the 1 With the average exchange rate of the Bank of the Republic of Burundi, 1 old age of the tea farmers.

The tea farmers want the extension of dollar equals 1, BIF as of June 29, Initially, public authorities gave grants to villagers growing cycle is short it is 3 months and they are more productive who adopted the tea plant in addition to the mineral fertilizer in the area. Tozanli and Gauthier, This non-subsidization is followed by the mandatory use of mineral fertilizer as well as other forms of 4. Market-based Governance care associated with the production of quality green leaf weeding, In Burundi, the tea plant is a cash crop for export.

More than mulching and pruning. The rest is for local sales in the strongly exerted by state processing factories with sometimes country. Mostly sold in the Mombasa auction market in Kenya, coercive measures fines and imprisonment.

In this market, dry tea is disadvantage for the country which relies on the quality of dry tea sold from Kenya, Tanzania, Malawi, Rwanda, Uganda, etc.

The sold mainly outside the country and the intensity of competition price of tea in Mombasa is set by three factors: quality, supply in the global tea industry is very high Thushara, The and demand. Tea of good quality usually receives a higher price mobilization of extension workers during harvest to ensure compared with other teas sold. Thus, many buyers put many compliance with harvesting standards and the refusal of a rough producing countries in competition through brokers each seller harvest are part of a logic of maintaining profits of downstream has his own brokers.

Dry tea selling countries do not have a single actors from processing the basic product and paying upstream customer and vice versa. Buyers are not involved in production producers.

Small tea farmers, not having their own processing and the country can sell dry tea at auction markets or directly to factories, must comply with specific standards and techniques to companies without brokers.

In case of high tea production, prices sell their production Sumadio et al. Captive governance on the auction market fall as well as the demand. This explains the was reported in many sectors for different countries: the tomato simplicity of dry tea as an asset. According to the sales manager, sector in Morroco and Turkey Tozanli and Gauthier, , the the country must focus on the quality of dry tea because it cannot groundnut sector in Madagascar Youssi, , the milk sector control supply and demand factors.

The tea in India Somasekharan et al. It is sold mainly on the local Small tea farmers with unproductive plantations develop some market. Observation at the field showed tea plantations which are not maintained, a clear negotiated between the country and foreign buyers, taking into sign of plantations abandonment. This is a way to avoid the account quality, quantity, delivery times and auction price.

The non- maintenance of a plantation saves the farmer from the opportunity 5. It has multiple forms of governance depending on the level of the chain at which one finds oneself. The survey identifies The spectacular increase in the price in and is the two governance systems: captive chain governance form at the consequences of an attempt to liberalize the Burundi tea sector.

In , a private company Protem- Tea Project of Mwaro for As Burundi produces a small quantity of dry tea, it is imperative processing the green leaf into dry tea was established and began that it sells high quality tea.

Dry tea is made by processing tea its activities of purchasing green leaves by offering tea farmers a green leaves. The small tea farmers neighbouring better flavour, liquor, etc. To avoid losing the the harvest of green leaves is done in respect of strict standards suppliers of the green leaf tea, public authorities have directly Wijeratne, To enforce standards and requirements for better revised prices up for all small tea farmers.

Since , the private tea, state authorities use captive power. Agarwal, R. The impact The continuous price increase of foodstuffs in rural areas is of life cycle and technology of firm survival. The Journal of Industrial explained by a growing demographic pressure of the rural Economics, 49 1 , Bair, J. Rural areas discussion. Bakkour, D. Paris: Ecole Wu, Download Free PDF.

Value chain in business plan. Luisa Ogden. A short summary of this paper. Download Download PDF. Translate PDF. The freemium business model The company offers 2 versions of its product. These elements work together, as the benefits that the value chain provides contribute to the business model by giving customers a reason to buy, generating revenue and keeping the company afloat. Taking a comprehensive approach to ensure supply chain planning success A supply chain plan is a written document that details the strategy a company must employ to develop or improve a global supply chain.

The platform of performing activities is the business organization. Activity based costing is value chain in business plan to calculate costs for each process. Marketing is the social process by which individuals and groups obtain what they need through creating and exchanging products and value with others. Differentiation advantage VCA is done differently when a firm competes on differentiation rather than costs.

The nature of the industry influences the relative importance of activities. The value chain is a sequence of activities that exist in almost every business. This is the decision process about the profitability of the production activity to produce a good or service. Each value adding activity is potentially a source of competitive advantage.

A value chain is a set of activities that an organization carries out to create value for its customers. For example, fewer components in the product design may lead to less faulty parts and lower service costs.

Depending on the business model, we have to find the organizational the value chain activities. The success of a company is measured by its profitability, which is closely connected to the efficiency of the performed activities.

The table below lists all the steps needed to achieve cost or differentiation advantage using VCA.