Six Requirements for Value Chain Management
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Six Requirements for Value Chain Management
The Robbins text outlines six requirements for value chain management that include coordination and collaboration, attitude and culture of the organization, investment in technology, employee/human resources quality leadership and organizational process. These requirements, if properly managed, can help ABC Microchip Company remain competitive in the long (Robbins, 2008).
Coordination and collaboration helps a company to get rid of cost resulting from inefficiency; it helps the company to deliver the right products to where they are most needed at the required time and at the best price. If the company is unable to predict demand, it may produce excessively or suffer a shortage of its products. The two elements are therefore primary criteria in determining success in value chain management (Robbins, 2008).
Technology investment would also add value in ABC Microchip Company’s value chain management when the company uses computer systems, it can access, communicate effectively, analyze, establish an efficient network of sharing information and compose documents as well as produce them for presentations. Computer systems, if well connected, can work in far market places in the same manner they work at home. Therefore, investing in IT use would improve on how individuals and entire departments work in the company. It helps in streamlining recruitment, training and performance management (Robbins, 2008).
Organizational process in the company would provide systematic definitions, organization and implementation of entire operations in all the stages of production. This would involve strategic measures to enhance performance, intellectual property and propriety model, which contribute to the achievement of goals and objectives in the company. In addition, the company requires good leadership that develops inspiring visions, lead changes by examples, creates confidence, empower employees, encourage open communication, uses team approach, encourages decision by the group and monitors progress (Robbins, 2008).
Effective human resource management regards recruitment, development, motivation as well as rewarding of employees in the company. Although this element is transactional in nature, it has the capacity to bring economies of scale and cost benefit to the company. This element can be reinforced by a supportive culture and attitude; barriers such as refusal to share information, unsupportive attitude such as trust as well as self-control can be obstacles to the success of value chain management (Robbins, 2008).
Reference
Robbins, S. (2008). Fundamentals of Management 6TH Edition.New Jersey, USA, Prentice Hall